Summary
The fact that you may need to register with state agencies like Utah OneStop Business is a sneaky misconception that many folks miss.
However, with the rise of remote work, states have begun cracking down and levying penalties for those who (unknowingly) fail to register.
If you're considering operating in Utah, use this guide to:
- Explore the that triggers the need to register with the Utah OneStop Business, including criteria such as physical presence, economic activity, and advertising efforts.
- Determine where and how to register with the Utah OneStop Business.
- Understand additional requirements such as Registered Agents, registration with other state departments, and ongoing annual reports.
What criteria would trigger the requirement to register with the Utah OneStop Business?
Key Factors
Physical Presence: The following indicate strong physical presence in Utah:
- Having an office, store, warehouse, or other physical location.
- Having employees, contractors, or sales representatives operating in the state.
- Owning or leasing property in Utah (real estate or tangible property).
Economic Activity: These economic activities also suggest you're doing business in Utah:
- Selling goods or services to Utah customers (even remotely or online).
- Providing services within Utah.
- Regularly engaging in business transactions within the state.
Specific Examples
The following activities would likely be considered doing business in Utah:
- Operating a retail store or restaurant in Utah.
- Having a Utah office or workspace for your business.
- Maintaining a warehouse or distribution center in Utah.
- Providing consulting or repair services to Utah clients on a regular basis.
- Selling products to Utah residents through an online store or marketplace (especially if you hit certain sales thresholds).
Nexus and Remote Sellers
Utah follows the concept of nexus, meaning a sufficient connection (physical or economic) to the state creates a tax obligation. Remote sellers might have to collect sales tax if they exceed certain economic thresholds even without a physical presence.
Where do I register, and what else is required?
- A Certificate of Good Standing is required (dated within the past 90 days)
In addition:
A Registered Agent is required to serve as the company's physical in-state presence to receive important legal documents. Do not fall victim to the common misconception that you can leverage an in-state employee as your Registered Agent. It's far too risky.
You'll want to review the other registrations required in Utah. Here's a Utah specific guide we put together.
What is the registration fee?
The fee charged by Utah is $48.
How long does Utah usually take to process?
Utah usually takes approximately 2 - 3 weeks to process registrations.
What is required ongoing?
Each state has a complex schedule of required annual reports, which can vary by entity type. Let's take a look at Utah's:
C-Corporation
- Filing Date: April 1st
- Filing Frequency: Annual
LLC
- Filing Date: April 1st
- Filing Frequency: Annual
Non-Profit
- Filing Date: December 31st
- Filing Frequency: Annual
There is an Easier Way
Automate registration and annual report tracking in AbstractOps.This guide should definitely help reduce some of the confusion for Utah. However, if you have multiple states to worry about, you may look to:
Automate state registrations and annual reports
Centralize email, snail mail, state ID’s, and registered agents, and
Take control of action items, eliminating risks before they become penalties.
Start the AbstractOps product demo to see how easy this can be.
Note: For the avoidance of doubt, nothing provided here shall contemplate, constitute or include tax or legal advice. Always double check with state agency websites for the most up-to-date requirements.
