Orem Business License: Base Fee and the Disproportionate Regulatory Service Fee

Operating a business inside Orem requires an Orem city business license, and Utah does not offer a substitute. The state has no general business license, so the city handles the local permission to operate. The cost is not one flat number. An Orem city business license has a base fee plus a Disproportionate Regulatory Service fee (the DRS fee), and the DRS amount depends on which city services your business uses. This guide explains how to get the current figures, what to file with the state first, and where owners most often lose time.

This article is informational content, not legal or tax advice. Fees and ordinances change, so confirm every figure with the agency named in each step. If your situation is complex, such as multiple entities, employees working from a home office, or a regulated product, talk with a qualified attorney or CPA before you file.

What You Need Before You Apply

Gather these items before you call or file. Missing one usually means a second call or a second trip.

• The exact legal name of your business and its entity type: sole proprietorship, LLC, corporation, or another structure.
• The street address where the business will operate, and confirmation that it sits inside Orem city limits. A business outside city limits gets its license from the county instead.
• A list of the city services you expect to use, because the DRS fee depends on them.
• For an LLC or corporation, your state filing confirmation and the name of your registered agent, who must have a Utah street address.
• For a business name that differs from your legal name, your assumed name (DBA) registration.
• A payment method. Ask Orem Business Licensing which methods it accepts when you call.
• Your Utah sales tax account number, if you sell taxable goods and have an established presence in Utah.

Step-by-Step: Getting Your Orem Business License

1. Confirm the business is inside Orem. The city license covers businesses located within city limits. A city license does not transfer to another city. If you move a business from another Utah city into Orem, you need a new Orem license, and you should not assume your old one carries over.
2. Register the entity with the state. Entity filings go to the Utah Division of Corporations and Commercial Code, Utah Department of Commerce, at businessregistration.utah.gov. You log in with UtahID. An LLC files a Certificate of Organization for $59, and its name must contain "limited liability company," "limited company," or an abbreviation such as LLC. A corporation files Articles of Incorporation for $59. Most online filings are approved instantly. Filings that need manual review are stated at 2 to 4 business days, and the Division has posted 7 to 10 business day processing during backlogs. This registration is not your Orem license.
3. Register a DBA if you need one. If you operate under a name other than your legal name, file an assumed name (DBA) with the Division. It is filed at the state level, not the county. Registration costs $22, and renewal costs $18 per year.
4. Set up a sales tax account if you need one. Any seller with an established presence in Utah needs a Utah Sales Tax License from the Utah State Tax Commission. Apply through TAP at tap.tax.utah.gov. Review your rate with the Tax Commission at tax.utah.gov before you set prices.
5. Check for occupational and liquor licensing. Many professions need an occupational license from the Division of Professional Licensing (DOPL). If you sell alcohol, the regulator is the Department of Alcoholic Beverage Services (DABS). Check these early so a missing state approval does not surprise you later. Confirm current requirements and fees on each agency's page, because this guide does not list them.
6. Call Orem Business Licensing before you pay. Email [email protected] or call 801-229-7000. Requirements vary by business type, so describe your business in detail. Ask for the current base fee, the DRS fee for the services your business will use, any extra requirements for your business type, how home-based operations are treated, and whether a short-term rental needs any approval.
7. Understand the two-part fee. The license has a base fee plus a DRS fee. Utah Code 10-1-203 (2022 text) lets a city license businesses it regulates and charge fees that recover the cost of that regulation, and that is the basis for fees like this. Orem's city fee schedule is the official source for amounts. A third-party compliance site reports that the DRS fee varies with the city services a business uses, but treat any outside figure as an estimate until the city confirms it in writing.
8. Apply, pay, and keep the license. An Orem business license is valid for one year, starting in the month you apply, and it renews annually. Put the expiration date on your calendar the day you receive it.
9. Calendar your state renewal separately. An LLC or corporation files an annual renewal of $18, due one year from registration and every year after. The renewal window opens 60 days before the anniversary date. A late renewal fee of $10 applies to LLCs. The city renewal and the state renewal are separate deadlines.

Who Issues What

Use this table to see which agency handles each piece. Confirm every fee on the agency page before you budget.

Item	Issued by	What to know
Entity registration (LLC or corporation)	Utah Division of Corporations and Commercial Code	$59 filing fee. Registration is not a license.
Assumed name (DBA)	Utah Division of Corporations and Commercial Code	$22 to register, plus a renewal fee (check the Division's DBA page for the current fee and term). Filed statewide, not with the county.
Orem business license	Orem city	Base fee plus DRS fee. Valid one year from the application month.
Sales tax license	Utah State Tax Commission	Required for sellers with an established presence in Utah. Apply through TAP.
Occupational license	Division of Professional Licensing (DOPL)	Needed for many professions. Check your trade.
Liquor license	Department of Alcoholic Beverage Services (DABS)	Needed if you sell alcohol.

Home-Based Businesses and Short-Term Rentals

Utah law limits the fees a city may charge home-based businesses, so a home occupation may pay little or nothing. Do not assume that result from this article. Ask Orem Business Licensing how the city classifies your home business, and check the current Orem city ordinance for the rule that applies.

If you plan to list a room, basement, or home as a short-term rental, check Orem city code and the Planning department before you publish a listing. A business license does not answer land-use questions, so the license and the rental rules are separate checks.

Common Mistakes to Avoid

• Assuming a state license covers the city. Utah has no statewide general business license. The state registration and the Orem license are separate filings.
• Treating the state registration as permission to operate. A Certificate of Organization creates your LLC. It does not authorize you to do business in Orem.
• Paying the county. If your business is inside Orem city limits, the city issues the license. Confirm your address before you pay anyone.
• Filing a DBA with the county. Assumed names are filed with the state Division.
• Budgeting from a third-party estimate. The DRS fee depends on the services you use, so get the number from the city in writing.
• Carrying an old city license to a new location. City licenses do not transfer between cities.
• Missing renewal dates. The city license renews each year from your application month, and the LLC annual renewal has its own deadline and late fee.
• Advertising a short-term rental first. Check city code and Planning before you list.

What to Expect

Owners who gather the items above before they call are generally better placed to move through the Orem step in one application. The city, not this guide, sets the timing and cost for your business, so ask for the current processing time along with the fees. Your first-year total will usually include the state filing you choose, any DBA or sales tax step, any occupational or liquor approval, and the city's base fee plus its DRS fee. Confirm that total with the agencies before you commit to a launch date.

Next step: email or call Orem Business Licensing, ask for the current base fee and DRS amount in writing, and complete any state filing that is still open. For questions about how your entity or income is treated, consult a qualified attorney or CPA.