SLC Business License Costs & Checklist for First‑Time Owners

Launching a business in Salt Lake City is fun right up until you land on the licensing portal and feel your momentum die. This guide keeps you moving. It explains what you will actually pay, the order to handle the state and city pieces, and the traps that slow first-time owners. The goal is usefulness, not fluff.

Quick take: Expect a base license fee, possibly a regulatory fee, and sometimes a per-employee or per-unit charge. Most filings happen online. Straightforward home businesses can be cleared in about a week. Commercial spaces that need fire or building inspections often take 2 to 4 weeks.

1. What You Actually Pay (and Why)

Salt Lake City calculates your bill by stacking components. Everyone pays a base license fee. Certain industries add a regulatory fee because the city actively monitors them. Many businesses then owe a disproportionate cost fee, usually tied to employee count or number of rental units, to cover higher city service usage. There is also an “enhanced services” line the code allows, but it is set at zero today.

The number that matters most is the category you choose in the application. That label: consulting, manufacturing, restaurant, convenience store, drives the base and any automatic add-ons. If you are unsure which box you belong in, call the licensing desk before you guess. Picking wrong is one of the fastest ways to trigger a re-review.

To give you a feel for the scale in 2025: a small consulting or design firm lands around $33 a year, basic retail or manufacturing sits near $59, restaurants come in around $124, and a grocery or convenience store is about $165. A reciprocal mobile food truck license is $103 and does not add a separate base fee. Storage or warehouse uses hover near $76. These shift each June with CPI adjustments, so confirm before you pay.

Hiring employees increases the total. Many categories charge an extra amount per employee after the first. Landlords do something similar but per rental unit. Home businesses either pay the home occupation fee or, if they create no measurable impact on the neighborhood (no client traffic, no signage, minimal deliveries), the city might waive the base fee. That decision is case by case, so assume nothing.

2. Handle the State Stuff First

Ten minutes spent upfront will save you from half-completed applications and rejection emails. Register your entity with the State of Utah: LLC, corporation, or just a DBA, through the OneStop Business Registration system or the Division of Corporations site. The state process can also hand you your sales tax account if you need one. Grab an EIN from the IRS if you plan to hire or want a bank account in the business name.

Before you hit the city portal, check that your chosen address is zoned for your intended use. The city will check anyway. If the zoning doesn’t fit, your file stops cold until you resolve it or pick a new location. Home-based? Download the Home Occupation form so you are ready to upload it.

If you are dealing with food, alcohol, childcare, health care, or anything the state or county regulates, start those approvals now. The city will not issue your license before those pieces land. Many commercial uses also need a quick fire and life safety self-inspection worksheet; have it handy if your category triggers it.

3. Walking Through the City Application

Everything runs through Salt Lake City’s online licensing portal. Create an account, choose “Apply for Business License,” and work through the screens.

You begin with basics: the legal entity name, any DBA, owner or manager contact details, the Utah entity number, and your EIN if you have one. The portal then asks where you operate—home, a commercial address, mobile, or outside the city while doing business inside it.

Next comes the location section. Enter the full address. Commercial tenants may need to state square footage or upload a simple floor plan. Home-based operators attach the Home Occupation form to answer impact questions. Zoning review happens in the background, so accuracy here keeps things moving.

Then you choose your business activity from a list. Treat this as more than a label; it determines the fee category. If you have multiple lines of business, pick the primary revenue driver. The city can bump you to a higher category or add a second one if they feel your mix justifies it. A quick phone call to confirm your choice is worth the five minutes.

Document uploads are straightforward: the state registration certificate or DBA filing, your IRS EIN letter if applicable, any county Health Department, DOPL, or Alcohol Control approvals, your lease or a letter from the property owner if you rent, the Home Occupation form if you are working from home, and the fire self-inspection sheet when requested.

When you submit, the system totals the fees. You pay by card and absorb a small processing charge that does not show in the schedule. After payment, the file moves to the departments that need to sign off. Commercial spaces often pull in fire and building reviewers. If the space was used for something similar recently, approval can be quick. If you are still building out, remember that construction permits and fees are a separate track and can take longer than the license itself.

Once every box is checked, the city emails an approval notice with a PDF license attached. Save it in two places and note the license number. You will need it next year.

4. Renewal and Changes You Must Report

Licenses renew every year. The city sends reminders, but inboxes get messy, so put your own calendar alert for eleven months after the issue date. Late fees escalate quickly, and the city can tack on interest or even close your license administratively if you ignore them.

If you shut the business down, file a closure notice. Otherwise, the system assumes you are still operating and keeps billing. Ownership changes, rebrands, and address moves are not “minor.” File an information change request and pay the small fee so the record matches reality. It is far cheaper than dealing with a compliance letter later.

5. The Checklist (Trimmed to What Matters)

Use this if you like ticking boxes, but feel free to skip if you prefer to work linearly.

Before the city application: entity registered with Utah, EIN in hand, zoning checked, Home Occupation form ready if needed, state or county approvals started for regulated industries, fire self-inspection worksheet printed if your use calls for it.

During the application: create the portal account, enter business info and address, select the correct activity category, upload the supporting documents, submit and pay, respond quickly to any deficiency emails, and schedule inspections if they pop up.

After approval: download and save the PDF, post any required notice on site if your category requires it, and drop a renewal reminder on your calendar.

6. Speed Bumps to Avoid

Most delays trace back to a handful of avoidable mistakes. Choosing the wrong business activity category forces staff to re-score your application. Skipping zoning checks leaves you scrambling for a new address when review catches the mismatch. Assuming home businesses never pay turns into a back-and-forth about traffic, deliveries, or signage. Forgetting state pieces—health permits, DOPL licenses, sales tax IDs—halts the file at the finish line. And failing to tell the city you closed means invoices keep coming.

7. “But I Don’t Have an Office in Salt Lake…”

If you perform work inside the city, you are “doing business” in the city’s eyes. Consultants driving in for client meetings, contractors working on a site, delivery services dropping goods—none of them get a pass just because their headquarters sits elsewhere. Budget for the license.

8. Budgeting the First Year

New owners leak money through unplanned fees. Treat the license as its own line item and park about $150 to be safe. Light-impact service businesses may come in under that, but you will not be surprised if the per-employee charge nudges it up. If you are changing or building out a space, understand that building permits and plan reviews can dwarf the license bill, so run those numbers early. Paying a professional to sanity-check zoning or building code can feel like an indulgence, but a one-hour consult can save weeks of delay. Finally, stash the renewal amount in your operating budget now so next year’s email does not catch you short.

9. Frequently Asked Questions

How long will this take? Simple home businesses with no inspections can wrap up in roughly a week. Commercial uses that trigger fire or building sign-offs usually take 2 to 4 weeks. If construction is still underway, expect longer.

Can I operate while the license is pending? Usually no. The city expects you to wait for approval. There are temporary permits for some events and pop-ups, so ask the licensing office if that fits your situation.

What if I add employees midyear? File an information change so the city can adjust the disproportionate cost fee. Waiting until renewal can lead to penalties.

Do I need a license for each location? Yes. Each separate physical site needs its own license. The exception is residential rentals under one ownership, where one base fee plus per-unit charges can cover multiple dwellings.

Does the city prorate fees? Many categories prorate if you open late in the year. The schedule includes a chart. Open in November and you might only pay a slice of the annual amount.