Can You Sell Food Without a License in Utah: How to Start a Food Business In Utah the Legal Way
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Can You Sell Food Without a License in Utah
Find out what you need to do to start a business in Utah, from licenses and permits to taxes and insurance.
Here is a summary of the most important things you'll need to do to start your own business in Utah.
1. Choose an idea for a business
Take the time to look into business ideas and try them out. At this point, you should think about your own skills, interests, resources, availability, and why you want to start a business. You should also think about how likely it is to work based on what your community wants and needs. Read our article to learn more about how to assess business ideas.
After you choose an idea, you might want to write a business plan to see how likely it is that you will make money. When you make a plan, you will know more about how much it will cost to start up, who your competitors are, and how you can make money. Before giving you money, investors and lenders will want to look at your business plan. You can be ready for this by writing a plan before you start looking for money. Can You Sell Food Without a License in Utah
2. Choose a legal set-up
The most common ways for a small business to be set up legally are:
corporation, sole proprietorship, partnership, limited liability company (LLC),
Some of these structures, like limited partnerships and S corporations, also have special versions. You should think about which business entity structure gives you and your business the best tax, financing, and financial benefits.
3. Pick a name. Can You Sell Food Without a License in Utah
For LLCs and corporations, you will need to make sure that your name is different from other business names already on file with the Utah Division of Corporations and Commercial Code (DCCC). You can do a business name search on the DCCC website to see if a name is already taken. If you fill out an Application for Reservation of Business Name form and send it to the Utah DCCC, you can reserve a name for 120 days. LLCs and corporations must meet certain rules about their names (like including a word such as "LLC" for LLCs or "Company" for corporations).
Can You Sell Food Without a License in Utah
Is your business a sole proprietorship or a partnership that uses a business name that is different from the name of the business owner (for a sole proprietorship) or the names of the individual partners (for a partnership)? If that's the case, you need to register that name with the DCCC. You can sign up on paper or online.
You might want to register your business name as a domain name if you plan to do business online. To learn more, see Choose and Register a Domain Name. Also, to avoid trademark infringement problems, you should do a federal and state trademark search to make sure the name you want to use is not the same as or too similar to a name that is already in use.
4. Make a legal entity for your business, Can You Sell Food Without a License in Utah
Sole proprietorship: In Utah, you don't need to file any paperwork with the state to start a sole proprietorship. See How to Start a Sole Proprietorship in Utah for more information.
Partnership: In Utah, you don't have to file any paperwork with the state to form a general partnership. Even though it's not required by law, every partnership should have a written agreement. If there is ever a fight between the partners, the partnership agreement can be a big help. See How to Form a Partnership in Utah for more information. A Statement of Qualification must be filed with the DCCC if you want to start a limited liability partnership, which is often used by professionals.
Can You Sell Food Without a License in Utah
LLCs: In Utah, you must file a Certificate of Organization with the DCCC in order to make an LLC. You will also need to name a registered agent in Utah so that legal documents can be sent to them. Even though it's not required by law, you should also make an operating agreement to set the basic rules for how your LLC will work. The state does not have a copy of the operating agreement. See How to Form an LLC in Utah and How to Form a Professional LLC in Utah for more information (for professionals).
Corporations: In Utah, you must file Articles of Incorporation with the DCCC if you want to start a corporation. You will also need to name a registered agent in Utah so that legal documents can be sent to them. Even though it's not required by law, you should also make bylaws to set the rules for how your corporation will run. The state does not have bylaws on file. S Corporations also need to send the IRS Form 2553, Election by a Small Business Corporation. See How to Form a Corporation in Utah for more information.
5. Permits and licenses
Almost everyone who does business in Utah has to sign up with the state. For this, you should use Utah's One-Stop Business Registration.
Signing up for tax. You need to apply for a sales and use tax license if you want to sell things in Utah. You must sign up for employer withholding tax if you will have employees in Utah. At the state's OneStop business registration site, you can sign up for both types of tax.
Can You Sell Food Without a License in Utah
EIN: You must get a federal Employer Identification Number (EIN) from the IRS if your business has employees or is taxed separately from you. Even if getting an EIN isn't required, there are often business reasons to do so. Banks usually need an EIN to open a business account in the name of the business, and other companies with which you do business may need an EIN to process payments. On the IRS website, you can fill out an application to get an EIN. There's no cost to file.
Licenses and permits from the government. These cover things like:
safety and health
building and construction, the environment, and certain industries or services.
the following government groups:
Tax office for the state of Utah
Commission on Work in Utah
Utah Department of Workforce Services, Utah Department of Environmental Quality, and Utah Department of Commerce.
Check the websites of any cities or counties where you will do business to find out about licenses and permits.
Can You Sell Food Without a License in Utah
Licenses for jobs and professions. These people work in many different fields. The Utah Division of Occupational and Professional Licensing (DOPL) is in charge of most of the state's boards and commissions that regulate licensed jobs and professions. In the section of the DOPL website called "Select Profession/Occupation," you can see a list of the professions and jobs that DOPL handles.
6. Choose a place for your business and check zoning rules.
You'll need to choose a place for your business and check the rules about zoning in your area. Before you decide on a location, take the time to figure out how much it will cost to run your business there, including rent and utilities. You can look at your business plan to see if you can afford the location you want in the first few months of your business. You should also check that the place is zoned for your kind of business. You might be able to find out what the zoning rules are in your town or city by looking at the local ordinances and contacting the zoning or planning department in your town.
You could also run your business out of your home instead of moving it to a new place. Check your local zoning laws again if you want to run a business from home. Also, check your lease, if you rent your home, and the rules of your homeowners association, if you belong to one. Both of these things might ban some or all home businesses.
7. Check to see if you are registered to pay taxes and what you need to do.
Every kind of business is taxed in Utah. See Utah State Business Income Tax to learn more about state taxes for businesses in Utah.
Can You Sell Food Without a License in Utah
One person-owned businesses. Pay state taxes on business income as part of their personal state tax returns (TC-40).
Partnerships. On their own tax returns, partners pay state taxes on the partnership's income. Most Utah partnerships also have to file Form TC-65, Utah Partnership/Limited Liability Partnership/Limited Liability Company Return.
LLCs. On their own tax returns, members pay taxes to the state on their share of the LLC's income. Most LLCs also have to file an extra tax form with the state. The form that is used will depend on how the LLC is taxed by the federal government. LLCs that the federal government treats as corporations must pay Utah's franchise tax. Utah LLCs also have to file a renewal form with the Utah DCCC every year.
Corporations. When shareholders get dividends from a company, they have to pay state taxes on them. A salary-earning shareholder-employee must also pay state income tax on his or her own state tax return. Also, Utah has a franchise tax that applies to the company itself. Lastly, corporations have to file a renewal with the DCCC every year.
If you have employees, you also have to pay state taxes as an employer.
And there are always federal income and employer taxes on top of Utah taxes. Check out IRS Publications 334, Tax Guide for Small Businesses, and 583, Taxpayers Starting a Business.
8. Obtain Insurance
Business insurance can protect your business and your personal assets from the effects of unplanned disasters like personal injury lawsuits and natural disasters. An insurance agent can help you look into the different coverage options for your business. This could include general liability insurance to protect you from claims related to bodily injury or property damage, or cyber liability insurance to cover legal and settlement fees after a data security breach.
9. Open a bank account for your business
No matter what kind of business you start, you should think about opening a separate business account so you can keep track of your income and expenses more easily. Can You Sell Food Without a License in Utah