Utah Employer Requirements: Registering as an Employer and Hiring Your First Employee
Utah Employer Requirements: Registering as an Employer and Hiring Your First Employee
Hiring your first employee in Utah means registering with several state agencies, and the first registration you need is not a license. Utah has no statewide general business license. Your entity registers with the Division of Corporations and Commercial Code, your payroll accounts open with the Utah State Tax Commission and the Department of Workforce Services (DWS), and your city, town, or county issues the local license. This guide covers Utah employer registration in the order most owners need it.
This guide is informational only. It is not legal or tax advice. Employment, payroll, and tax rules depend on your facts, so confirm current requirements with the agency named in each section. For complex situations, talk to a qualified attorney or CPA.
Step 1: Register Your Business Entity
Every employer starts with a registered entity. Register with the Utah Division of Corporations and Commercial Code, Utah Department of Commerce, through the Utah Business Registration System. You log in with a UtahID. The Division’s corporations page has current forms and instructions.
This is a registration, not a license. Filing it does not authorize you to operate in a particular city or county, and it does not open a payroll account.
- Limited liability company (LLC): You file a Certificate of Organization for a $59 filing fee. Most online filings are processed and approved instantly. Filings that need manual review are stated as 2 to 4 business days from receipt, and the Division has posted processing times of 7 to 10 business days during backlogs.
- Corporation: You file Articles of Incorporation for a domestic business corporation, also for $59.
- Expedited processing: $75 per filing.
- Name reservation: $22 holds a name for 120 days.
An LLC name must contain “limited liability company,” “limited company,” “LLC,” “L.L.C.,” “LC,” or “L.C.” “Limited” may be shortened to “Ltd.” and “company” to “Co.” The name must be distinguishable on Division records and may not suggest your company is a state agency or political subdivision. Check availability in the business search before you file.
Every entity must name a registered agent for service of process, and the agent needs a Utah street address. A PO box may be listed only in addition to a street address. The agent can be an individual, a business entity registered with the Division and in good standing, or a commercial registered agent, which costs $52 to register.
Annual renewals
An LLC files an annual renewal for $18. The first renewal is due one year from the registration date and every year after that. The renewal window opens 60 days before the anniversary date, and a late renewal carries a $10 late fee. A corporation files an annual report for the same $18 during its anniversary month. Utah has no separate LLC franchise tax. An LLC taxed by default as a partnership or sole proprietorship has no other recurring state filing cost, while an LLC that elects corporate treatment pays the 4.45% corporate franchise and income tax (from January 1, 2026) with a $100 minimum tax. Confirm your tax treatment with a CPA before you choose.
Doing business under another name
If you operate under a name other than your registered entity name, file an assumed name, also called a DBA or Business Name Registration. It costs $22 to register, plus a renewal fee (check the Division's DBA page for the current fee and term). File it with the Division, which handles assumed names statewide. Do not file it with a county.
Step 2: Get Your Local Business License
Utah issues no statewide general business license. Once your entity is registered, you need a business license from the city or town where you are located or operating. Outside city limits, the license comes from the county. A city license does not transfer to another city, so a second location in a different city needs its own license. Fees, applications, and inspections vary by jurisdiction, so confirm them with the city or county before you open.
Separately, a seller with an established presence in Utah needs a Utah Sales Tax License from the Tax Commission, applied for on TAP, the Tax Commission’s online system. This is a tax registration, not a business license. The state sales tax rate is 4.85% (1.75% on grocery food). Combined state and local rates run from 6.35% to 9.55% depending on jurisdiction, and the combined grocery food rate is 3.0%.
Some professions also need an occupational license from the Division of Professional Licensing (DOPL). A business that sells alcohol needs its license through the Department of Alcoholic Beverage Services (DABS). Check both before you advertise services.
Step 3: Get a Federal EIN
Your federal Employer Identification Number (EIN) comes from the Internal Revenue Service, and Utah’s payroll accounts ask for it. Get it before you open a state withholding or unemployment account, and keep the confirmation letter with your formation documents.
Step 4: Open a Withholding Account with the Tax Commission
Employers that withhold Utah income tax from employee wages register a withholding account with the Utah State Tax Commission. You need the account before the first paycheck. Confirm the registration steps and current withholding tables on tax.utah.gov, because the Tax Commission updates them.
Step 5: Open an Unemployment Insurance Account with DWS
Employers with wages subject to Utah unemployment insurance open an account with the Department of Workforce Services. For 2026, the taxable wage base is $50,700, which means the first $50,700 each employee earns in the year is subject to unemployment tax. According to DWS, overall rates run from 0.1% to 7.1%. DWS assigns the rate that applies to your account, so confirm it with DWS rather than assuming either end of the range. Our separate unemployment insurance guide covers the account and filing schedule in more detail.
Step 6: Report Each New Hire Within 20 Days
You must report every new hire and rehire to DWS within 20 days of the hire date. The state new hire registry is run with the Office of Recovery Services, so the report goes through that system. Build it into your first-day paperwork so the deadline does not slip.
Step 7: Carry Workers’ Compensation and Post the Notice
Utah requires employers to carry workers’ compensation coverage for employees, with limited exceptions under Utah Code 34A-2-201. Do not assume an exception covers the people you plan to hire. Confirm with the Utah Labor Commission which exceptions, if any, apply to your situation. Utah also requires the compliance notice to be posted at the workplace. Post it where employees will see it on their first day. Our separate workers’ compensation guide covers coverage in more depth.
Paid Sick Leave and Federal Leave
Utah has no state-level paid sick leave mandate for private employers. You are not required by Utah law to provide paid sick days, but if you offer them, the policy you write becomes a commitment you must honor. Federal FMLA leave is unpaid and job-protected, and it applies to employers with 50 or more employees. If you have fewer, FMLA does not apply to you. Confirm current federal rules with the U.S. Department of Labor before you finalize your policies.
Wages and Hour Rules
Pay rates, overtime, pay frequency, and recordkeeping have their own rules, which our separate wages guide covers. Before you make your first offer, confirm the current minimum wage and overtime requirements with the Utah Labor Commission rather than relying on a figure you saw elsewhere.
Your First-Hire Sequence
Use this order as a working plan, and confirm each step before you start the next one.
- Register the LLC or corporation with the Division, and file a DBA if you need one.
- Appoint a registered agent with a Utah street address.
- Obtain your federal EIN.
- Open the Tax Commission withholding account.
- Open the DWS unemployment insurance account.
- Secure workers’ compensation coverage and post the compliance notice.
- Get your city, town, or county business license, plus any sales tax, occupational, or DABS license that applies.
- Hire, then report each new hire to DWS within 20 days.
Where to Confirm
| Agency | What to confirm | Official source |
|---|---|---|
| Division of Corporations and Commercial Code | Entity filings, DBA, renewals, name availability | commerce.utah.gov/corporations |
| Utah State Tax Commission | Withholding account, sales tax license | tax.utah.gov |
| Department of Workforce Services | Unemployment account, new hire reports, wage base and rates | Search for the agency’s official site |
| Utah Labor Commission | Workers’ comp exceptions, notice posting, minimum wage and overtime | Search for the agency’s official site |
| Division of Professional Licensing | Occupational licenses for your profession | Search for the agency’s official site |
| Department of Alcoholic Beverage Services | Liquor licensing | Search for the agency’s official site |
| City, town, or county | Local business license fees and applications | Your city or county website |
| Utah Small Business Development Center | Business advising for new owners | utahsbdc.org |
| U.S. Small Business Administration, Utah district | Federal small business resources | sba.gov/district/utah |
When to Bring In a Professional
This guide does not cover every situation. Talk to a qualified attorney before you decide how to structure ownership, classify a worker as an employee or an independent contractor, or hire in more than one state. Ask a CPA how to set up payroll taxes and whether your LLC should elect corporate tax treatment. A CPA can also review your withholding and unemployment setup before your first payroll runs.