UT business license?

[RisC]

I keep hearing different things. As an Etsy Shop owner in UT are we required to have a business license?

Some of have told me that you only need one if you make a certain amount of money, but others have said everyone needs one?

Does anyone know what the rules really are?

[Former_Member]

RisC,

According to the Department of Commerce in the state of Utah, yes. More details are at the following link:
http://corporations.utah.gov/pdf/buslicguide.pdf

Before I got started on Etsy, I registered by Business on Etsy via OneStop Business Registration (Utah).
https://secure.utah.gov/osbr-user/user/welcome.html

Because I live in Salt Lake County and in West Jordan City, I only had to have my business license through the City of West Jordan, but it appears that this depends on what county you live in.

To pay taxes online, you can use the following link:
https://tap.tax.utah.gov/TaxExpress//TAP.htm?p=503777280&q=6%2bHwC0OqYCg43mf0yFrxbDyzIEU96cEuQ5zpy1O...

Hope that gets you started ;)

Christine

[Former_Member]

I've always understood that in Utah you can operate under your ss#. If you are actually selling here, you do need a tax ID and vender license. My accountant has never said anything to me about it. Maybe I need to look into this more.....

[ScatterbrainTies]

I've just been using my SS#, but that doesn't mean I know what I'm talking about.

[TandRHandweaving]

Chairmorningdesigns is correct. I too had questions about getting a business license and what was required to be a legal seller here in Utah.

Yes, is the correct answer - how it applies to your situation and where you live in Utah can be answered by using the links Chairmorning supplied.

It was very easy getting everything in order, license, tax id, etc. Makes me feel better knowing that I am doing everything by the book.

All the best!

[Former_Member]

You only need a business license if you have a physical location for selling in utah. You do however need a state sales tax license if you sell over a certain amount of money... You should check out the Utah SBDC, they offer all sorts of free help for small businesses:

http://utahsbdc.org/

[RisC]

Everyone I talked to said that I needed a business license, even if I did not have a physical store. If you work from home and sell online, your home counts as your physical location. Also, when I talked to the UT sales tax people, they told me it didn't matter how much I sold. The first quarter I was in business I almost got fined because I did not file my sales taxes in time even though I only owed $0.40 (and I had no idea that I had to file every quarter). Everything is so confusing that I would rather just be on the safe side. I have my business license and sales tax license now. I feel better spending just a little money now instead of risking fines for not being legal.

[Former_Member]

I registered my business with the state - Dept of Commerce. You want to do that so that no one takes your business name. You also need to get an EIN# from the IRS. You use either this number or your SS# to register your business with the State.

You need to file your sales tax report quarterly or annually - depends on how much you make. If you make less than $1000, you only need to file annually.

You also need a business license from the city you live in. They will need either you EIN# or SS#.

If you do craft fairs, my experience has been that they need your business license # and they will also provide you the forms to file you state sales tax.
The last craft fair I did, I only had 2 weeks in which to get it filed and paid.

Hope this helps.

[RisC]

I thought that I could I file my sales tax annually since I make less than $1000. Then they sent me a warning saying if I didn't file within 2 weeks then I would get a $12,000 fine. When I called about it, they told me that everyone has to file sales tax quarterly.

[Former_Member]

RisC - I got to second-guessing when I should file so I called the Tax Commission today. The $1000 is not the amount of gross sales, but the amount of the tax liability. If you owe $1000 in taxes or less, you only file annually.

You can be set up to pay quarterly if you want, but it's not necessary if you don't owe $1000 in sales tax yet.

[Former_Member]

Good to know. I didn't know that. I better get on it :)

[Former_Member]

When you apply for a business license you can chose to pay yearly on the application, but if you miss it, as I did, the default is that you will have to pay quarterly. If I remember correctly, there is only one time per year where they allow you to change from quarterly to yearly, and that is at the last quarterly filing of the year. So you’re in the perfect spot if you want to change to a yearly filing because you can make this change with the upcoming return. Contact the Utah State Tax Commission on how to do this, as it may be different with the new online TAP system.

[TheRubyBelle]

RisC- About the quarterly filing... When I signed up for my business license this year (September) I signed up to file yearly. You can imagine my surprise when I got a filing request for third quarter. I called the tax commission and they said all new businesses are required to file quarterly for the first year and then like everybody else has stated if you make under $1000 you can file yearly. It also sounds like the tax commission is giving everybody slightly different answers.

[Former_Member]

I just filed for my business license through legalzoom, they can do both your federal and state filings that are necessary :)

[Former_Member]

is getting a business license and a tax id two separate things or if I do the one stop business license thing will it get me both?

[Former_Member]

Yep, they are. You need to get your business license from the city you are operating in; you get your tax id number from the state tax commission - form TC-69 on their website.

You also need to register your business name with the state and I also got an EIN (employer identification number) from the IRS.

Kind of confusing, but they are all necessary in order to be a legitimate business.

[Former_Member]

It is really confusing, but like I said Legalzoom seriously does it all, state and federal, they sent me everything within a few weeks of applying.
You sign all the necessary documents, which they provide you and they do all of the boring legal stuff.
I received a beautiful leather binder with to store all of my legal documents. I promise I don't work for them lol, I just loved that I didn't have to do anything!

[BobbinInQuilts]

I ddnt get a business
Icense at first, but I paid sales tax. Then the tax people reported me to my city and they came back and told me I had to get a licence or they would charge me with a msdemeanor. The tax people also told me it doesnt matter how much sales I got. As long as I sold to some one in Utah I had to report sales tax.

[Former_Member]

I signed up for them, and have recieved my sales tax license, but I haven't recieved my business license, did it take a long time for you to get yours? It's been about 3 weeks

[Former_Member]

Michelle how much does Legalzoom charge? I couldn't find anything on their website about cost.

[saffronandsaege]

Has anyone been in the situation where you registered your business after your shop was already open for a while? What was your experience? Same question about sales tax.

[Former_Member]

utah.gov business registration FAQ https://secure.utah.gov/osbr-user/user/faq.html

[BobbinInQuilts]

Loraleigh, I made some sales on Etsy before I decided to call it a "business." I told the gov that I started business when I registered. I was advised not to get a business license, but I ended up needing one, but ended up working out ok.

[Former_Member]

I just read through all of these posts and am still so confused! Becky- like you I have been told I do not need a business license but then reading how other people are getting in trouble for not having one scares me.

Does anyone know for sure what the answer is? If we sell online and at craft fairs do we need a business license? I've just used my SSN and paid taxes on the forms they give me at the fairs/farmers markets.

Ahh! I even work in a law office and this is so confusing.

[Former_Member]

i'm in the same boat as you Loraleigh .
I know I want an EIN instead of using my SS#, and I know I want to avoid legal issues. I don't sell at craft fairs because as far as I know, there are none in Cache Valley.
I know I want a business license too, but don't know where to start.
I read somewhere that in order to get your business licensed/registered in Utah, you need a business plan. Is that true?? I don't think I need one. I sell crocheted hat props and the like.

I'm also wondering what Legalzoom charges. If they don't charge a lot I'd rather leave this in the hands of professionals.

Does anyone know a good, trustworthy accountant in Cache Valley?