INTRODUCTION

Dear Future Entrepreneur:

Many people dream of being an entrepreneur, but they
let the fear of not knowing where to start get in the
way of that dream. Starting your own business may
scary and stressful, but with the right knowledge and
resources it can be easy and profitable.
This booklet was created to help relieve some of the
stress and fear of opening your own business. It will
briefly summarize legal definitions, financial issues,
and common documents needed when starting a
business, as well asgive resources for additional
information.
When you are ready to begin building your dream,
turn the page and start your journey.
Sincerely,

Business Building Team

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DEFINITION OF A BUSINESS
In Salt Lake County, a business is defined as any
activity within the limits of the county engaged in for
monetary or economic gain. These are examples of a
business:
The sale of personal property.
Manufacturing goods or property.
Rendering personal services for others .

BUSINESS LICENSES
If you engage in any businesseither permanently
or temporarilyyou must maintain a valid business
license to ensure that:
Your business location is properly zoned.
Your building where you operate your business
meets fire code and other safety standards.
Your Business is properly regulated.
Several websites provide information about the
licenses and permits required for different types of
businesses.
https://www.sba.gov/category/navigationstructure/starting-managing-business/startingbusiness/obtain-business-licenses
http://www.slcgov.com/business-licensing/forms
Additional information can be obtained by calling
(801) 535-6644.

WRITING A BUSINESS PLAN

You need a plan if you want your business to succeed.
Forecast three to five years into the companys future.
To get a guide to writing a business, plan go to the Small
Business Administrations website at
https://www.sba.gov/tools/business-plan/

TRAINING
Before starting your business seek training. Many
places offer free workshops and counseling. Talk to
representatives of your local colleges and universities
about any business workshops or support groups
they may sponsor. You can also find information
about workshops in Salt Lake City at
https://www.sba.gov/offices/district/ut/salt-lake-city
Just type find events and workshops in your area in
the search field to find resources near you.

CHOOSING A LOCATION

Selecting a business location may be one of the most

important decisions you make as a business owner.
To find the location place for your business:
Review competing businesses.
Know the prices of the buildings in the area.
Know which local and state laws will affect your
business.
Assess area demographics
You can find demographic information at:
http://www.utah.gov/about/demographics.html

LEGAL STRUCTURE
You should know how you want your busines
structured before going to a lender or getting
your business licensing. When selecting a business
structure, there are a few important things you must
consider. Create detailed answers for the situations
below to protect you from liability issues.

How easy do you want ownership transferability?

How will you handle a death or a buyout?
What are the businesses capital needs?
What are the tax liabilities?

These are the most common types of business

structuring.
Sole Proprietorships are for when you comprise the whole
business. You assume unlimited personal liability, meaning
that you are responsible for anything that happens to the
business.
General Partnerships are for when you have more
than one partner. This type of business organization
is riskier because the owner assumes all the financial
risk. However, it is easy and inexpensive to form.

Limited Liability Companies or LLCs offers more

protection than a sole proprietorship, and they are
is simple to form. An LLC is its own legal entity,
meaning you arent personally responsible for any
debt in the company. The company can raise money
more easily than a sole proprietorship by selling
interests in the business.
Corporations are made up of owners and shareholders
and you must follow stringent formalities. You are required
to follow and is made up of owners and shareholders. A
big benefit of corporations is that owners and shareholders
are protected from personal liabilities. Corporations
raise capital by issuing stocks. A couple of disadvantages
of corporations are double taxation and the increased
costs of forming and managing the company.
S-Corporations receive the same benefit protections
as a corporation and can receive tax breaks if they
follow strict regulations. The owners are taxed on
their personal income and not the companys profits.
They are also limited to 100 stockholders, who are
required to be citizens or residents.

FINANCING
You will likely need to find some form of financial
assistance to open your business. Start by find out
How much cash will be needed until you have an
established cash flow?
What are startup costs?
What are the one-time and recurring costs?
Re-occurring costs are things such as:

rent
utilities
payroll
insurance

Once you have those figures in place, you can look at

banks, credit unions, and private investors that may
be able to offer financing. They will all have their own
requirements to provide financing, and you will need
to compare each possible lender. Never simply take
the word of the first lender.

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NAME REGISTRATION
Your business name will need to be registered with
the state if you choose something other than your
own name. When you register your business, you
will receive and get a certificate of existence from the
Division of Corporations and Commercial Code.
You also need to register with the state in person at:
The Heber M. Wells Building 1
60 E 300 S, 1st Floor, Salt Lake City,
Utah 84111
Or online at: https://secure.utah.gov/bes/.

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TAX ID NUMBER
Most businesses need an Employer Identification Number
(EIN). An EIN is obtained through the IRS.
http://www.irs.gov/Businesses/Small-Businesses&-Self-Employed/Apply-for-an-EmployerIdentification-Number-(EIN)-Online
You can also file in person at the local IRS office:
Salt Lake County Internal Revenue Service
50 S. 200 E.
Salt Lake City, UT 84111

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CITY AND STATE TAXES

Businesses have to pay taxes. You will need to learn
about your local tax obligations.
Utah requires businesses to be registered for taxes
when doing business. The Utah State Tax Commission
provides registration forms based on the type of business
you are operating. Contact them in person at:
The Utah State Tax Commission
210 North 1950 West
Salt Lake City, Utah 84134
Telephone (801) 297-2200
Visit their website at: http://tax.utah.gov/business

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EMPLOYER RESPONSIBILITIES
If you hire employees, you will need an EIN (see
page 12) from the IRS to set up records for tax
withholdings. You will need employee verification
information such as photo identification and social
security numberand research if your business needs
to provide health benefits or workers compensation.
insurance.

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NETWORKING RESOURCE

Networking can increase your success. The Salt Lake

Chamber of Commerce is the largest business association
in Utah and is associated with 7,700 businesses over 29
counties in Utah. The Salt Lake City chamber helps
businesses succeed through partnerships that help them
save money and generate greater revenue through
networking. Vist their websites at:
http://slchamber.com/page/sandbox/view/chamber_
intro
http://usdcutah.org/

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REFERENCES

Utah State Tax Commission. Accessed November 20,

2014. www.tax.utah.gov.
State of Utah. Accessed November 18, 2014. http://
www.utah.gov/index.html.
Divisions of Corporations. Accessed November 18,
2014. https://secure.utah.gov/bes/
Internal Revenue Service. Accessed November 16, 2104
http://www.irs.gov/Businesses/Small-Businesses& - S e l f - E mp l oye d / App l y - for- an - E mp l oye rIdentification-Number-(EIN)-Online
All photos courtesy of Pixabay.com

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