How to Start an Assisted Living Facility in Utah: Type I and Type II Licensing

Starting an assisted living business in Utah means dealing with two sets of government offices. The first is the Utah Division of Corporations and Commercial Code, which registers your business entity. The second is the DHHS Office of Licensing, which goes by DLBC and licenses the facility itself. Many first-time operators handle these in the wrong order, and that mistake costs months. This guide walks through the sequence in the order we would follow it, with the fees we can verify and the points you must confirm with an agency before you spend money.

Disclaimer: This article is informational content, not legal, tax, or licensing advice. Assisted living is a heavily regulated health care business. Talk with a Utah attorney who handles health care licensing and with a CPA before you sign a lease, a purchase contract, or an employment agreement.

Type I vs. Type II: Choose Your License Type First

DLBC licenses assisted living facilities as either Type I or Type II. The choice drives your staffing, your building layout, your admission rules, and your license fee, so decide it before you do anything else. The exact definitions, resident assessment rules, and staffing requirements come from DLBC's current rules, not from this article. Read the current rules at dlbc.utah.gov and ask DLBC to confirm in writing which type fits your plan before you commit to a property.

Ask DLBC about limited capacity as well. The fee schedule lists a lower new-provider fee for a limited capacity provider ($464.90 instead of $1,069.26). Whether your facility qualifies depends on DLBC's definition, so confirm eligibility before you apply and do not budget for the lower fee until you have it in writing.

Materials and Information You Need Before You Start

Gather these items before you file anything. Missing one of them is the most common reason a first application stalls.

• A business name that meets Utah's entity naming rules, plus a choice of entity type (LLC or corporation)
• A registered agent with a Utah street address (a PO box may be listed only in addition to a street address)
• The target property address, the owner's written consent to use the building, and a written answer from the local planning department on zoning
• A written business plan that states your Type I or Type II choice, your bed count, and the resident mix you plan to serve
• Draft staffing schedules, admission and discharge policies, and resident agreement forms
• A startup budget that covers state fees, local fees, build-out, insurance, payroll, and a cash reserve for the months before revenue arrives
• A Direct Access Clearance System (DACS) account for every owner, administrator, and employee who will need a background check
• Funds for the state entity filing, the DLBC license fees, and the local business license

Fees at a Glance

The table below lists the figures available. Confirm every figure on the agency page before you pay, because DLBC publishes a new fee schedule each fiscal year.

Item	Amount	Where to pay or confirm
LLC Certificate of Organization filing	$59	Utah Division of Corporations and Commercial Code
Corporation Articles of Incorporation filing	$59	Utah Division of Corporations and Commercial Code
Expedited processing	$75 per filing	Utah Division of Corporations and Commercial Code
Name reservation (lasts 120 days)	$22	Utah Division of Corporations and Commercial Code
Annual renewal (LLC or corporation)	$18, plus a $10 late fee if late	Utah Division of Corporations and Commercial Code
Assumed name (DBA) registration	$22 to register (three-year term; check the portal for the renewal fee)	Utah Division of Corporations and Commercial Code
Commercial registered agent registration	$52	Utah Division of Corporations and Commercial Code
DLBC base license fee (FY 2026 schedule)	$743.84, plus $37.19 per bed	DLBC, dlbc.utah.gov
DLBC new provider fee (FY 2026 schedule, one time)	$1,069.26 ($464.90 for a limited capacity provider)	DLBC, dlbc.utah.gov
City or county business license	Set by the jurisdiction where you operate	Your city or county office
Zoning review or permit fees	Varies by city and county	Local planning department

The DLBC figures above come from the fee schedule effective July 1, 2025 to June 30, 2026. DLBC's amounts for July 2026 to June 2027 may be different, so check the current schedule before you quote a price to an investor or lender.

Step 1: Set Your Type, Bed Count, and Service Model

Write down whether you are applying for a Type I or Type II facility, how many beds you plan to license, and whether you plan to request limited capacity status. Then run the DLBC fee math. On the FY 2026 schedule, a 10-bed facility would pay $743.84 plus $371.90 (10 beds at $37.19), which is $1,115.74. Add the one-time $1,069.26 new provider fee and the total comes to $2,185.00. The per-bed amount grows with every bed, so a 20-bed plan adds another $371.90 to the recurring figure. Confirm with DLBC whether the base and per-bed amounts recur each year or are charged once.

Step 2: Form Your Entity and Register Your Name

Most operators form an LLC, though a corporation is also an option. An LLC is taxed by default as a partnership or sole proprietorship, so income passes through to its members and is taxed at Utah's individual income tax rate. A corporation that files as a corporation pays the state corporate franchise and income tax, with a $100 minimum tax. Which structure suits your investors, lenders, and liability plan is a question for your attorney and CPA.

To form an LLC, you file a Certificate of Organization. The name must include the words "limited liability company" or "limited company," or one of the abbreviations LLC, L.L.C., LC, or L.C. The name must be distinguishable from existing entity names on the Division's records and may not suggest that the company is a state agency. If you need time to finish your plans, you can reserve the name for 120 days for $22.

File through the Utah Business Registration System at businessregistration.utah.gov, which requires a UtahID login. Most online filings are processed and approved instantly. Filings that need manual review are stated as taking 2 to 4 business days, and the Division has posted 7 to 10 business days during backlogs. If you need speed, expedited processing costs $75 per filing. Corporate details are at commerce.utah.gov/corporations.

Every entity needs a registered agent for legal papers. The agent must have a Utah street address, and a commercial registered agent registration costs $52. Appointing an agent is an affirmation that the agent has agreed to serve, so confirm that before you list someone.

Step 3: Confirm Zoning Before You Sign a Lease

Zoning is set by each city and county, and the rules for care facilities vary widely. Call or visit the planning department for the exact parcel, not just the city in general. Ask whether assisted living is a permitted use in that zone, whether it needs a conditional use permit or other approval, whether any distance rules apply between care facilities, how many parking spaces the use requires, and how the occupancy classification affects the building. Get the answer in writing. A verbal "should be fine" has cost operators their buildings.

Step 4: Get Your Local Business License

Utah has no statewide general business license. Registering your entity with the Division of Corporations and Commercial Code is a registration, not a license. After that, your business must obtain a business license from the city or town where it is located, or from the county if it operates outside city limits. A city license does not transfer to another city, so if you change locations across a city line, you need a new license. Confirm the fee and the application requirements with your local office, because the amounts are set locally.

Step 5: Apply for Your DLBC Facility License

Start your DLBC application only after your entity is active on the state records and your zoning answer is in hand. Use the name of the registered entity exactly as it appears on the Division's records, because a mismatch between the applicant and the entity slows the file. Pay the base fee, the per-bed amount for your planned beds, and the new provider fee (or the limited capacity amount, if you qualify). Confirm the current DLBC application forms and submission method on dlbc.utah.gov, since those can change with each fiscal year.

Step 6: Set Up DACS Background Checks

Assisted living providers must use the Direct Access Clearance System (DACS) for background checks. Set up DACS accounts early, and make sure every owner, administrator, and employee who needs a check is enrolled before you rely on them for resident care. Confirm with DLBC which individuals must be cleared, and whether anyone can work with residents before their clearance is complete. Hiring first and checking later is one of the most expensive mistakes an operator can make in this field.

Step 7: Prepare Policies, Staffing, and the Building for Inspection

Before licensing, DLBC will expect your facility to operate the way your application describes. Build your written policies, staffing plan, admission and discharge criteria, resident agreement, emergency procedures, and medication handling process to match the current DLBC rules for your type. Walk the building against those rules with your contractor before the inspection, not during it. Ask DLBC what the inspection covers, how long it takes to schedule, and what documentation the surveyor will ask to see.

Step 8: Register for Taxes Where Required

Your entity will file income tax returns with the Utah State Tax Commission, and you should set up payroll withholding and any other accounts your employee count requires. Utah's sales tax account is handled through the Tax Commission's TAP system, and a sales tax account is a tax registration, not a license. Whether any of your revenue is subject to sales tax depends on what you sell, and that is a question for your CPA and the Tax Commission at tax.utah.gov. If your facility will ever sell or serve alcohol, that is a separate process handled by the Department of Alcoholic Beverage Services (DABS), not DLBC.

Step 9: Calendar Your Ongoing Obligations

Your entity's annual renewal is $18 and is due each year on the anniversary of registration. The renewal window opens 60 days before the anniversary date, and a late renewal carries a $10 fee. If you registered a DBA for a facility name that differs from your legal name, that DBA runs for a three-year term (check the portal for the renewal fee) and is filed with the state Division, not the county. Your DLBC license has its own renewal and inspection cycle, so confirm those dates with DLBC when you are licensed and put them on the same calendar.

Expected Results

A well-prepared filing and a complete DLBC application may help you avoid the delays that catch most new operators. Timing varies with the state processing queue, the local zoning and permit schedule, the DACS clearance process for each staff member, and the DLBC inspection calendar, so plan for a long runway rather than a fixed opening date. Operators who confirm zoning and licensing type first often report fewer redesigns, but no timeline or revenue outcome is guaranteed, and nothing in this guide is a promise of licensure or results.

Common Mistakes to Avoid

• Signing a lease before the zoning answer is in writing. A lease you cannot use for your intended purpose is an expensive problem.
• Assuming the state registration is a business license. Utah's Division registration is separate from the city or county license you still need.
• Carrying a city license across a city line. A license does not transfer between cities, so relocating means reapplying.
• Choosing the wrong Type after the building is designed. Staffing, layout, and admissions all depend on the type, so change it before construction, not after.
• Looking for a county DBA filing. Assumed names are filed with the state Division, not the county.
• Hiring before DACS clearance. Confirm who must be cleared and when before anyone works with residents.
• Quoting last year's fees. DLBC publishes a new schedule each fiscal year, so check the July 2026 to June 2027 amounts on dlbc.utah.gov first.
• Missing the renewal window. Calendar the entity renewal and the DLBC renewal the day you are licensed.

Next Steps

Start with two decisions: Type I or Type II, and the property you plan to use. Then file the entity, get the zoning answer in writing, and start the DLBC and DACS work in parallel. The Utah Small Business Development Center at utahsbdc.org can help you organize the business plan, and the SBA's Utah district page at sba.gov/district/utah lists local resources. Before you commit to a lease, a loan, or a construction contract, have a Utah health care attorney and a CPA review your plan against the current rules. This guide is informational only and is not legal, tax, or licensing advice.