Do I Need To Register A Home Based Business In Utah Cities

WHICH Goods AND SERVICES ARE TAXABLE?

Determining whether or not the products or services your company sells are taxable in Utah is the first step in sales tax compliance.

Traditional Goods or Services

Appurtenances that are subject to sales tax in Utah include concrete belongings, like furniture, abode appliances, and motor vehicles.

Prescription medicine and gasoline are bothtax-exempt.

Utah charges a 3%,reduced rate on the buy of groceries.

Some services in Utah are subject to sales tax. For a detailed list of taxable services view this PDF from the Utah State Tax Division website.

Digital Goods or Services

A digital skillful or service is anything electronically delivered, such as an album downloaded from iTunes or a movie purchased from Amazon.

Utahrequires businesses to collect sales tax on the sale of digital appurtenances or services.

HOW TO Register FOR UTAH SALES TAX

If you determined that you lot need to charge sales tax on some or all of the goods and services your concern sells, your next pace is to register for a sellers permit. This allows your business to collect sales tax on behalf of your local and state governments.

In society to annals, you volition need the following information:

The business entity type (Corporation; Limited Liability Company; Sole Proprietorship; etc.)
The proposed name of your business concern.
Date the new business is going to offset in Utah.
Date of the showtime payroll in Utah.
Names; addresses; telephone numbers; FEIN'due south and SSN's or Tin's of proprietors; partners; corporate officers; LLC members and Registered Agent. Electronic signatures required.
The business location(s).
Cursory description of the business organization activity.
Proper name and phone number of person submitting the registration.
Forms of payment (Visa; MasterCard; electronic cheque).
For Foreign Business concern Entities (Business organisation entities located outside of Utah): You will need to provide a Certification of Proficient Standing/Existence from the State of Incorporation dated no before than ninety (90) days.

Register for a Sellers Permit online through the OneStop Business Registration section for the Utah State Taxation Partition

Get A SELLERS Permit

Fee: None

Expiration: None

Salvage Money with a Resale Certificate

With a resale document, too known as a reseller's let, your business does not have to pay sales tax when purchasing appurtenances for resale.

Download the Resale Certificate through the Utah Country Tax Committee DOWNLOAD RESALE Certificate

Download Resale Certificate

Instruction: Nowadays the certificate to the seller at the time of buy.

COLLECTING SALES TAX

Afterwards getting your seller's permit and launching your business, you will demand to make up one's mind how much sales tax you need to charge unlike customers. To avoid fines and the hazard of costly audits, it's important for business owners to collect the correct charge per unit of sales tax.

When computing sales taxation, you'll need to consider the following kinds of sales:

Store Sales
Shipping In-State
Out-of-State Sales

Store Sales

For traditional concern owners selling appurtenances or services on site, calculating sales tax is easy: all sales are taxed at the rate based on the location of the store.

Here's an example of what this scenario looks similar:

Mary owns and manages a bookstore in West Jordan, Utah. Since books are taxable in the state of Utah, Mary charges her customers a flat-charge per unit sales tax of 6.850% on all sales. This includes Utah's state sales tax charge per unit of 4.700%, Salt Lake Canton's sales tax rate of 1.350%, and Mary'due south local commune tax rate of 0.800%. (include county, local and metropolis taxes simply if applicable)

In-state Sales

The state of Utah follows what is known equally aorigin-based sales revenue enhancement policy. This means that long-distance sales within Utah are taxed according to the address of the seller. This policy applies to land, county, and city sales taxes.

Consider the following case:

Steve runs his own business organization selling electronics on eBay out of his home in Provo, Utah. A client living in Table salt Lake Urban center finds Steve's eBay folio and purchases a $350 pair of headphones. When calculating the sales tax for this buy, Steve applies the 4.700% state revenue enhancement rate for Utah, plus 0.800% for Utah Canton's tax rate, 1.100% for Provo's city tax rate, and 0.250% for his local tax district. At a total sales tax rate of half-dozen.850%, the total price is $373.98 ($23.98 sales revenue enhancement).

Out-of-state Sales

Utah businesses merely demand to pay sales tax on out-of-state sales if they havenexus in other states.Nexus means that the business has a concrete presence in another country.

Mutual types ofnexus include:

Aphysical location, such as an function, store, or warehouse
Anemployee who works remotely or who is a traveling sales representative
Amarketing affiliate
Drib-shipping from a third party seller.
Atemporary physical location, including festival and off-white booths.

FILE YOUR SALES Revenue enhancement Return

At present that you've registered for your Utah seller's permit and know how to charge the right amount of sales taxation to all of your customers, you lot are all set to file your sales tax render. Just be sure to proceed up with all filing deadlines to avoid penalties and fines.

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How to File

Utah requires businesses to file sales tax returns and submit sales tax payments online.

File the Utah Sales Tax Return

You lot will do this through the Utah Taxpayer Admission Indicate through the Utah.gov website.

FILE ONLINE

How Frequently Should You File?

How oftentimes you need to file depends upon the total amount of sales tax your business collects.

Annual filing: If your business organisation collects less than $ane,000 in sales revenue enhancement per twelvemonth then your concern should elect to file returns on an annual basis.
Quarterly filing: If your business organization collects between $one,000 and $50,000 in sales revenue enhancement per twelvemonth then your business should elect to file returns on a quarterly basis.
Monthly filing: If your business collects more $fifty,000 in sales revenue enhancement per year and so your business should file returns on a monthly ground.

Note: Utahrequires you to file a sales tax return fifty-fifty if you have no sales tax to study.

Filing Deadlines

All Utah sales revenue enhancement render deadlines fall on thelast day of the month, unless information technology is a weekend or federal holiday, in which case the deadline is moved back to the next business day.

Annual filing:January 31, 2020

Quarterly filing:

Q1 (Jan. - Mar.):Due Apr 30
Q2 (April - June):Due July 31
Q3 (July - Sept.):Due October 31
Q4 (Oct. - Dec.):Due Jan 31

Monthly filing: Thelast day of the post-obit month, or the next business solar day, e.g.April 30 for the calendar month of March, orMay 31 for the month of Apr.

Penalties for Tardily Filing

Utah charges alate filing penalisation of 10% per month or partial calendar month upward to a maximum of 20% of the tax that is reported on the tax return.

The land assesses the unpaid tax with a compounded interest rate of 2% per year.