Planning to start a business in Salt Lake City or Layton? No matter where you set up shop, starting a business in Utah is easy to do – as long as you know the steps involved.
The first thing you need to do is pick a business name and make sure the name is available. Utah will not allow two businesses in the state to have the same name, so name availability is important.
Once you find an available name, you’ll register your business with the state. We’ll explain how to get it all done.
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How to check business name availability in Utah
As mentioned, you can’t just pick any name for a Utah business, it must be unique and available. How do you find out if a certain name is available? Here’s how:
1. Go to the Utah Division of Corporations and Commercial Code
Utah has a search tool on its Division of Corporation and Commercial Code website. You’ll start there.
2. Enter the name you want
Utah’s search tool looks exactly like a Google Search. You’ll only see one search bar. You simply enter the name that you’d like for your business, and hit ‘Search.’
3. Review the results
Are there any exact matches? If there are, it means the name you want is already in use. If there aren’t any matches, the name is available for you to use.
Utah law says no two businesses in the state can have the same name. If you try to submit business formation documents to the state with a name that’s already in use, it will get rejected. For this reason, it’s important to check name availability before filing any paperwork.
4. Consider reserving a name
After running a Utah business name search, you have two options: You can reserve a name or you can register the name. You should reserve the name if you aren’t planning to set up the business immediately. You’ll need to fill out the form and mail it in. Utah doesn’t offer an online option for name reservation.
Utah allows business owners to reserve a name for 120 days for $22. To do so, you’ll fill out a quick form and provide the payment.
Again, you don’t need to reserve a name if you plan to officially set up your business with the state of Utah, but if you’re just doing some homework and plan to set up your business later, reserve the name now so it’s not taken when you’re ready.
5. Check domain name availability
We created a tool that makes it easy.
How to name your Utah business
Now that you know a little more about the business landscape in the state, it’s time to start generating a list of names for your business. To do so, follow these steps:
1. Write down basic details about your business
Start by creating a verbal picture of your business. Think about what your business will offer and who it will serve. Will you sell a specific product or service? Who’s going to buy it? Jot down a few details about your company as a starting point.
Next, start creating a list of adjectives that describe your business. Think in terms of keywords. What keywords would your customer use to find the product or service that you offer? Write them down.
2. Stay away from initials and hard-to-say words
There are plenty of businesses that include initials, like A&J Plumbing, but consider upping your game with something a bit more creative and descriptive.
The same goes for names that are hard to say. If your last name is Stackowaski, for example, it’s not conducive to a business name because it’s too hard to pronounce.
3. Don’t pigeon-hole your business
Be careful not to select a name that limits your company’s potential growth. Think about where your business will be in five, ten, even twenty years, and take that into consideration when creating a name.
A company named Bob’s Bargain Books, for example, is a good name, but what if they plan to sell vintage records and cassettes down the road? The name only refers to books, so when vintage music is added people won’t associate it with the store.
4. Consider using a name generator
At this point, you probably have a list of a few ideas. Rather than brainstorm a bunch of different combinations, why not try a name generator? You simply enter a few of the adjectives that you came up with into the search bar and you’ll get a list of possible names.
Name generators can take some of the hassles out of creating a name. Most name generators will only show you available names too, which is helpful.
Check out some of Namechk’s name generators below:
What kind of business structure is right for your Utah company?
As you research available business names in Utah, you’ll also want to think about what kind of business you want to establish. There are a handful of options to choose from, but some of the most common are Sole proprietorship and LLC.
- A sole proprietorship is ideal for small businesses with no employees that want to test their business out. There’s virtually no paperwork to set up this kind of business, which is a plus. However, a sole proprietorship is not a separate business entity, which means you’re financially and legally responsible for any problems that might arise.
- An LLC, or limited liability company, provides a certain amount of liability protection. Your personal assets and your business are separate with this business structure, which means if the business is sued or goes bankrupt, you will not be forced to use your personal cash reserves to bail the business out.
Steps to register your Utah business
Ready to set up your business in UT? Here’s what you do:
1. File your Articles of Organization
Visit the Utah Secretary of State website and fill out the Articles of Organization. To fill this out, you’ll need to have an available business name, address, and contact information.
2. Name a registered agent
You’ll also need to name a registered agent. A registered agent is the point-person for your company who will receive important documents like tax notices or legal documents.
A registered agent must be trustworthy and be available during regular business hours when documents are delivered. The business owner can serve as the registered agent in Utah, or another person or company can be named.
You might decide to name your accountant or co-founder, for example. You can also hire a registered agent service to serve in this role. Northwest Registered Agent, ZenBusiness, and Bizee are a few examples. These companies will receive documents on your behalf and notify you of their arrival.
3. Pay the filing fee
Every state charges a filing fee to file LLC formation documents with the government. In Utah, the cost is $100.
4. Wait for approval
Utah will review your application and typically provides approvals within five business days. Once approved, your business is officially set up.
Our picks of the best registered agent services
Utah small business facts
Before you start considering business name availability in Utah, take a look at these small business statistics from the U.S. Business Administration:
- Utah has 277,140 small businesses.
- Utah small businesses employ 557,794 people.
- Small businesses created 29,956 net jobs in 2015. Firms employing fewer than 20 employees experienced the largest gains, adding 16,114 net jobs. The smallest gains were in firms employing 100 to 499 employees, which added 3,299 net jobs.
- The median income for individuals self-employed at their own incorporated businesses was $50,918 in 2016. For individuals self-employed at their own unincorporated firms, this figure was $19,462.
- A total of 3,466 companies exported goods from Utah in 2015. Of these, 2,917, or 84.2%, were small firms; they generated 48.9% of Utah’s $11.5 billion in total exports.
FAQs
To further help entrepreneurs, check out these frequently asked questions about starting a business in Utah:
Why is it so important to check on business name availability?
Utah will not allow two businesses in the state to have the same name. There are many reasons for this, but at its core, it’s to avoid any confusion. For example, if someone plans to sue Bob’s Fruit Stand and there are two of these companies in the state, things can get complicated quickly.
All businesses must have a unique name. And, you can’t just add a hyphen to a name to make it different. Each name must be “distinguishingly different.”
Does every Utah business need an EIN?
Most businesses in Utah do need an EIN, or employer identification number, to operate. The EIN is issued by the IRS and is required to hire employees, open a bank account, and pay taxes. It’s a nine-digit number that you can get in a five-minute session online through the IRS website.
Are there specific funding programs for Utah businesses?
Like most states, Utah does have some grants set up to help small businesses thrive. The state offers a variety of grants that cover everything from companies working on innovative technology to rural businesses that might need a little assistance. The list of grants available in the State of Utah can be found on the Governor’s Office of Economic Opportunity.
How do you dissolve a business in Utah?
On the off chance, things don’t go as planned and you need to dissolve your business, you’ll need to fill out a Statement of Dissolution. Why is this necessary? The state needs to know that your business is no longer active. If the state isn’t notified, the business will still be responsible for regular business filings and fees, as the annual report.
You’ll also need to pay all taxes before dissolving the business too.
Does Utah have annual reports?
Yes. Every year, all businesses are required to file an annual report and pay a $20 filing fee. The purpose of the report is to keep the state informed about your business. If there are any changes to your business, like an address change or a new registered agent, you’ll update this information on the annual report.
Is an operating agreement necessary to launch a business in Utah?
You don’t have to submit an operating agreement to the state when you register your business, but it’s a good idea to have one. An operating agreement explains how the company will run, who’s in charge, how problems are handled, and how profits and losses are managed.
Do you need a lawyer to file business formation documents?
No. Business owners can file their own formation documents or they can reach out to a business services provider like Northwest Registered Agent, ZenBusiness, or Bizee. These companies can file your Articles of Organization, serve as your registered agent, and take care of your annual reports for you.
How long does it take to file Articles of Organization?
The paperwork is easy to fill out, provided you have an available business name and a registered agent in mind. It’s easiest to fill the documents out online and submit them electronically as opposed to mailing them in or dropping them off. Most states, including Utah, only take a few days to review and approve the documents.
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