West Valley City Business License: Four Licence Types and the $2,000 Home Exemption
West Valley City Business License: Four License Types and the $2,000 Home Exemption
If you plan to operate inside West Valley City, you need a city business license. Utah does not issue a statewide general business license, so the city is where you apply. This guide covers the four license types, the exemption for home businesses that gross under $2,000 a year, and the order of steps that keeps an application from stalling. It is informational only and is not legal or tax advice.
Where the License Comes From
Utah has no state general business license. A business gets its license from the city or town where it is located or operating, and from the county when it is outside city limits. Inside West Valley City, you apply through the West Valley City Finance Department Business Licensing office, which accepts applications online. A city license does not transfer to another city, so moving across a city boundary means a new application.
Registering your business entity with the state is a separate step, and it is a registration, not a license. For an LLC, you file a Certificate of Organization with the Utah Division of Corporations and Commercial Code at businessregistration.utah.gov. The filing fee is $59. Each year after that, the LLC files an annual renewal for $18. Background on entity filings is at commerce.utah.gov/corporations.
Materials You Need Before You Apply
- Your exact legal name and your state filing details, such as the Certificate of Organization for an LLC or the Articles of Incorporation for a corporation.
- The physical address where the business operates in West Valley City, and whether that address is a home.
- A plain description of what you sell or do, so the city can assign the correct license type.
- A Utah sales tax account number from the Utah State Tax Commission, if you sell taxable goods or services. You can apply through the Tax Commission's online portal at tap.tax.utah.gov.
- A storm water video, which the city requires. Ask Business Licensing which businesses must submit one and what the video must show.
- A DBA (assumed name) registration if you trade under a name other than your legal name. The DBA is filed with the state Division of Corporations and Commercial Code, not the county. It costs $22 to register, plus a renewal fee (check the Division's DBA page for the current fee and term).
- A payment method. Current city fees appear in the city's Consolidated Fee Schedule, so confirm the amount for your license type before you pay.
The Four License Types
West Valley City issues four license types: home, commercial, rental dwelling, and solicitor. The city requires a separate license for each type of business and for each place of business (city code 17-1-102). A home office and a rented commercial suite under the same owner means two licenses.
| License type | Who it generally covers | What to confirm |
|---|---|---|
| Home | A business operated from a residence | Whether the $2,000 exemption applies to your income |
| Commercial | A business operated from a non-residential location | Fee amount and any storm water video requirement |
| Rental dwelling | An owner of rental housing in the city | Owners of fewer than three units pay only variable fees; confirm the amount and renewal date |
| Solicitor | A business that goes out to solicit customers | How the city defines solicitation for your activity |
Some businesses have their own requirements, so call the office before you apply if you run a food business, a skin-contact business (massage, nail, or hair services), an alcohol-related business, or a temporary business that will operate for under 90 days.
The $2,000 Home Business Exemption
A home business that grosses under $2,000 a year is exempt from the license if the owner signs an affidavit. The exemption is not permanent. Once your income rises above the threshold, you must apply for the license. Track gross receipts from the first sale so you know when that happens, and confirm with Business Licensing how the city measures gross.
The exemption interacts with your sales tax account. The city expects a matching city license for every sales tax account located in the city. If you hold a sales tax account for a home business, ask the office whether the exemption still applies before you rely on it.
Step-by-Step: Applying for Your License
- Confirm the location. Check that the business address is inside West Valley City limits. If it is outside the city, the county issues the license, and this process does not apply.
- Register the entity with the state. File the Certificate of Organization or Articles of Incorporation first, because the city application asks for your entity details. An optional name reservation costs $22 and holds the name for 120 days.
- Register a DBA if needed. File with the state Division for $22 to register. Do this before you open accounts or sign contracts under the trade name.
- Open a sales tax account if you sell taxable goods or services. The West Valley City combined sales tax rate is 7.45% according to the Tax Commission chart effective April 1, 2026. The state rate is 4.85%. Rates change, so check the chart before you set prices.
- Choose your license type. If you run more than one business or operate at more than one place, list each one separately.
- Complete the online application through West Valley City Finance Department Business Licensing.
- Submit the storm water video if the city requires one for your business.
- Pay the fee listed in the Consolidated Fee Schedule for your license type.
- Check for a state occupational license. Many professions need a license from the Division of Professional Licensing. A city license does not replace it.
- Calendar your renewal date. Ask Business Licensing for the renewal date for your license type and mark it on your calendar.
Expected Results
A complete application with the entity number, a clear business description, and the correct license type is more likely to move through review without a request for more information. Expect the city to ask questions if the sales tax account and the city license do not match. The city's current processing time is not confirmed in this guide, so ask the office for the turnaround before you plan an opening date. Your license covers the type and location you applied for, so a second location or a second business type may need its own application.
Common Mistakes to Avoid
- Looking for a state general license. Utah does not issue one. The state registration you file with the Division is not a license.
- Carrying a city license across a boundary. A license from another city does not transfer after a move.
- Filing the DBA with the county. The DBA goes to the state Division for $22.
- Ignoring the $2,000 threshold. Keep a running record of gross receipts. Once you cross the threshold, the exemption no longer covers you.
- Skipping the sales tax match. Every sales tax account located in the city generally needs a matching city license.
- Missing the LLC annual renewal. The $18 annual renewal window opens 60 days before your anniversary date, and a late renewal carries a $10 late fee.
- Using an outdated tax rate. Check the current Tax Commission chart at tax.utah.gov rather than a figure from an old article.
Alcohol, Food, and Temporary Businesses
Alcohol sales also involve the Utah Department of Alcoholic Beverage Services (DABS), the state liquor agency, in addition to the city. Food businesses, skin-contact businesses, and temporary businesses under 90 days each have their own steps. Contact West Valley City Business Licensing for these categories before you sign a lease or buy equipment, and ask which state agencies apply to your activity.
Where to Get Help
The Utah Small Business Development Center at utahsbdc.org is a useful place to ask questions before you file. For the city license itself, the Finance Department Business Licensing office is the source of record for fees, renewal dates, and the storm water video rules.
Disclaimer
This article is informational only. It is not legal, tax, or financial advice. Fees, thresholds, and deadlines change, so confirm current figures with West Valley City Business Licensing, the Utah Division of Corporations and Commercial Code, and the Utah State Tax Commission before you act. For complex situations, such as multiple entities, mixed-use property, rental portfolios, or a regulated profession, consult a qualified attorney or CPA.