Frequently Asked Questions
What is a business license?
Permission granted from the City to operate a legal business within the City boundaries.
Why is a business license required?
By law, all businesses are required to license with the local municipality in which they are doing business. City Code 5.06.020 states: It is unlawful for any person to engage in business within the city without first procuring the license required.
Businesses are licensed to insure:
- The location is properly zoned for the activity to be conducted.
- The building the business will be operating in meets fire safety code standards.
- All state and local codes are adhered to, insuring the safety and well-being of our citizens.
- Businesses are properly regulated.
Revenue from license fee collections pays for the cost of licensing and regulation and to insure continuation and improvement of City facilities and services.
Who needs a business license?
Anyone engaging in any business either permanently or temporarily with in the corporate limits of Cottonwood Heights is required to maintain a valid, unexpired business license.
Business:
Business means and includes all activities engaged in within the incorporated limits of the city, carried on for the purpose of gain or economic profit.
Exemptions:
Certain business professions may be exempt by the State of Utah from license fees. However, even though they may be exempt from fees they are not exempt from the rest of the license process including filing a valid license application and completing necessary safety inspections or zoning requirements. Non-profit organizations must provide verification of non-profit status.
How do I know if a location is zoned for the business activity I will conduct?
You can contact Cottonwood Heights Zoning Department at (801)944-7000 to verify if a location is properly zoned for the activity you wish to conduct.
What if construction or remodeling needs to be completed at the business location?
If any electrical, plumbing, structural, or mechanical changes are needed you will need to contact the building department at (801)944-7000.
How do I apply for a business license?
Before you can apply for a business license all applicable state requirements must be completed.
What steps do I need to complete before submitting an application?
Business names must be registered with the State
All businesses in Utah are required by law to register with the Utah Department of Commerce.
If you are using your own name as your business name it will not need to be registered. However, if you use any other name or even your abbreviated name you are required to register the name. For example if your name is John A. Doe and you name your business John Doe you will not have to register the business; if you name your business John Doe Preschool or JD Enterprises you will have to register
Why are businesses required to register?
Registration insures that the business name cannot be legally used by another business. The more you use the registered name and become know to the public by name the more legal protection your name earns against “predatory encroachment” by other businesses.
Registration is required so that a comprehensive state registry of all business and corporate information is available for public reference. This information is vital to an orderly legal system and marketplace. Without it the public or other businesses may have no way of knowing the persons with whom they are doing business.
In addition, registration is required by law to provide notice as to who owns or stands behind a business entity. You cannot file a lawsuit in court as a business if your business is not registered. Registration enables careful business people to verify information about companies with whom they do business.
Obtain an Employer Identification Number (EIN)
An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. Generally businesses need an EIN. You will need an EIN if you:
- Have employees
- Operate your business as a corporation or a partnership
- File employment, excise, or alcohol, tobacco and firearms taxes
- Withhold taxes on income, other than wages, paid to non-resident alien
- Have a Keogh plan
You will need an EIN if you are involved with any of the following types of organizations:
- Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax returns
- Estates
- Real Estate Mortgage Investment conduits
- Non-profit organization
- Farmers’ cooperatives
- Plan Administrators
Obtain a State Sales Tax Number
All businesses responsible for collection of sales and use tax must obtain a sales tax number from the Utah State Tax Commission. Most businesses are required to collect and remit sales tax for goods (and some services) they provide to consumers. Anyone performing internet sales must also obtain a sales tax number. Sales tax accounts are coded to the city in which the business is initially registered. Businesses with multiple locations/branches through out the state will need to include Cottonwood Heights as an outlet on their tax account by completing an “Additional Business Locations for a Sales Tax Account” with the tax commission. If the business is relocating to Cottonwood Heights a “Notice of Change for a Tax Account” must be completed with the tax commission.
Other requirements may need to be completed depending upon your business type. It is the responsibility of the owner/manager to seek out all governmental agencies involved in the regulations of their business.
Where can I obtain more information about other state agencies my business may need to comply with?
Where can I register a new business?
You can register a new business online with the State of Utah on the OneStop Online Business Registration System at www.business.utah.gov/registration. This will allow a new business owner to complete the registration process as quickly as possible. This is a secure online service available 24 hours, 7 days a week. It will guide you through a series of questions designed to comply with federal and state registration requirements.
Where can I obtain information and applications for a Cottonwood Heights’ business license?
Information and application packets can be obtained on the Cottonwood Heights website at www.cottonwood.heights.utah.gov or contact our office at (801)944-7020to receive the information by email, fax, regular mail, or you may stop by the office at 1265 E. Fort Union Blvd., Suite 250.
What if my business undergoes changes during the year?
A business license is not transferable it is only valid for the location, ownership, and activities/occupation as indicated on the license.
Business Name Change:
If a business name change occurs you will need to re-apply and provide verification of the new business name registration with the Department of Commerce. Changes will be made to the account and a new business license will be issued. No fees will be required.
Additional Location:
A separate license and fees are required for each branch or location
.
Change of Owner:
If ownership of a business changes the new owner is required to re-apply with the City. Fees will be required due to inspections and processing.
Address Change:
If the new address is located in Cottonwood Heights City you are required to re-apply. Fees will be required due to inspections and processing. If the new address is not located in Cottonwood Heights the business must apply for a new business license with their local municipality. Please notify Cottonwood Heights in writing if you are no longer located in the City.
When do I renew my license?
Licenses are renewed on an annual basis. Renewal notices will be sent out 30 days prior to the expiration date indicated on the valid license.
What if my business closes or moves out of the city?
The business will need to notify the city in writing you may fax or email your notification. Once notification has been received the business license account will be closed.
What are the penalties if the payment is late?
A 25% penalty will be added to the original amount due if the license fee is not paid by the expiration date
A 100% penalty shall be added to the original amount due if the license fee is not paid within one month after the due date.
If the fee plus penalty is still not paid within two months of the due date, the business shall be considered to be operating without a business license, subject to criminal prosecution for everyday of operation.