Starting a service business in Utah comes down to four things: picking a structure, registering with the state, getting licensed for your trade, and setting up a way to bill customers. Filing an LLC in UT costs $54, ongoing reporting is $20/yr, sales tax is 6.1% + local, and personal income tax runs 4.65% flat. Below is the full sequence, the fees you should budget for, the licenses most trades need, and the deadlines that catch new Utah owners off guard.
Most new registrations come out of Salt Lake City — local business licenses are issued at the city or county level, so check yours after the state filing clears.
| Item | UT cost |
|---|---|
| LLC / entity filing (one-time) | $54 |
| Annual / periodic report | $20/yr |
| Federal EIN (IRS) | Free |
| Sales tax registration | Typically free |
| Trade / professional license | Varies by trade |
| Local business license | Set by city / county |
Fees change — confirm current amounts with the UT Secretary of State and the Utah State Tax Commission.
Choose your structure and file with the UT Secretary of State ($54). Get your free EIN from the IRS the same day.
Register for Utah sales tax with the Utah State Tax Commission, then open a business bank account under the registered name.
Apply for your trade license and local business license. This is usually the longest step: Sales tax license; Professional license.
Get general liability insurance (and workers' comp before your first hire), then set up estimates and invoicing so you can bill the day you're cleared to work.
LLC Filing Fee
$54
Annual Report
$20/yr
Sales Tax
6.1% + local
Income Tax
4.65% flat
Choose business structure
File with UT Division of Corporations
Get EIN
Register for state taxes
Get local licenses
Open business bank account
One of the cheapest states to form and maintain an LLC
Utah consistently ranks as one of the best states for business
Yes — $54 filing, $20 annual report, flat 4.65% tax, and a strong economy.
Online LLC filings with the UT Secretary of State are typically processed in a few business days, and an EIN from the IRS is issued immediately online. Trade licensing and local permits usually take longest — plan on two to six weeks before you're fully cleared to work, depending on your trade.
No — you can operate as a sole proprietor in Utah and still invoice customers legally. An LLC ($54 to file, $20/yr) separates your personal assets from business liability, which matters most once you're on customer property, hiring help, or signing contracts.
Utah sales tax is 6.1% + local. Materials and goods are commonly taxable, while labor treatment depends on the type of work, so bill parts and labor as separate lines and register with the Utah State Tax Commission before you start collecting.
Open a business bank account under the registered name, then invoice from a tool that applies UT tax per line item and accepts cards. Glo Invoice sends invoices by text with a one-tap pay link, and Tap to Pay lets you charge on site before you leave the job.