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How To Get A Sales & Use Tax License In Utah (Mar. 2026)
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If you’re looking for an efficient, flexible, and affordable state to start a business, Utah is an excellent choice for forming a Limited Liability Company (LLC). While approval of your Articles of Organization officially creates your LLC, you must file Utah Sales Tax return to stay compliant and avoid future issues.
Utah Sales and Use Tax rules determine when and how to register, applicable tax rates, and the penalties for mistakes or noncompliance. This guide provides a clear overview of the Utah Sales and Use Tax, helping you register correctly and operate your Utah LLC with confidence.
Use the Utah State Tax Commission’s Taxpayer Access Point (TAP) to obtain your license by completing Form TC-69, where you register your business, provide tax and ownership details, and receive your license upon approval.
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Overview Of The Utah Sales And Use Tax License
Important: Even if you don’t register, your LLC is still liable for Utah Sales and Use Tax that should have been collected. Unpaid taxes may be assessed with penalties and interest, and failure to register can result in additional penalties.
You must register for a Sales Tax License with the Utah State Tax Commission if you sell tangible property or taxable services in the state. This is set under Utah Code § 59-12-106(2)(a), and applies regardless of how your sale takes place, as long as it’s subject to the Sales and Use Tax.
Your registration obligation is also determined by whether your LLC has nexus in Utah. Review my table below of a brief overview of nexus standards in the state. I will discuss these in more detail later in the article.
| Nexus Type | Description |
|---|---|
| Physical presence | Operates or uses a store, warehouse, office, service location, or distribution center in Utah. Maintains inventory in the state. Solicits sales in person within the state. Delivers goods regularly using the seller’s own vehicles rather than common carriers or the United States Postal Service. Participates in activities related to maintaining, leasing, or servicing Utah property. |
| Nexus through related sellers | Offers similar products under the same or a similar business name. Uses another seller’s employees, in state location, or resources to advertise, facilitate, or promote sales to Utah customers. |
| Economic nexus | Sells tangible personal property, electronically delivered products, or taxable services for use in Utah and earns more than $100,000 in total gross sales from Utah transactions. |
Getting the Utah Sales and Use Tax License is FREE. The license remains valid as long as your LLC files required tax returns, even if no taxable sales occur during the reporting period.
Failure to obtain the required license or to properly collect and remit sales tax and file return may result in penalties and fines. I will discuss these penalties in more detail further below.
In general, Utah Sales Tax rates range from about 4.85% to over 8.45%, depending on state, county, and local taxes.
Applying For Your Utah Sales And Use Tax License Online
Important: All Utah state business and tax registrations (Form TC-69 and related schedules) must be completed online via the Utah State Tax Commission system. You can no longer file a paper PDF version of the form.
To get your Utah Sales and Use Tax License, you must use the online application method.
You must obtain your Employer Identification Number (EIN) before registering. Read my article on How To Get A Utah EIN For Your LLC if you don’t have one yet.
I’ve discussed each step in detail below, allowing you to correctly complete your filing process.
1. Access The TC-69 Registration Form
To begin, navigate to the TAP. On the homepage, select the form titled “Apply for a tax account(s) – TC-69”.
Note: I’ve focused on the Sales and Use Tax License in the following sections, as this will be the specific license that you’re applying for.
2. Registration Instructions Confirmation
The system will ask you to confirm if you’re registering for a Utah tax account. Choose “Yes” to indicate that you are, then click “Next” to continue.
3. Sole Proprietor Status Verification
Next, you’ll be asked if you’re a sole proprietor who is not a U.S. citizen. Select “No” if your business is NOT a sole proprietorship or you’re NOT a U.S. citizen. Then, click “Next” to proceed to the next step.
4. Payroll Service Or Third-Party Preparer Check
After confirming your sole proprietorship status, you’ll be asked if you’re a payroll service provider or a third-party company applying on behalf of another business. Select “No” if you’re completing the application for your own LLC and NOT acting as a preparer or payroll service.
Then, click “Next” to proceed.
5. Applicant Information Acknowledgment
In the next step, you must confirm that you acknowledge and have the required information to complete your application. This includes your:
- Federal Employer Identification Number (FEIN).
- Business structure (LLC, sole proprietorship, corporation).
- Each LLC owner and officer’s full name, home address, and Social Security Number (SSN).
- Understanding that you need an SSN to proceed.
Acknowledge these requirements by selecting “Yes.” Then, click “Next” to proceed.
6. Selecting Tax Account Types
Select “Yes” to register for a Sales and Use Tax License. You can also choose “Yes” for these options if you need to register for other Utah Tax accounts. However, I’ve chosen to focus on the Sales and Use Tax License for this article.
Click “Next” to continue.
7. Prior Or Existing Tax Account Confirmation
You’ll then be asked if you’ve previously registered for any Utah tax accounts. Select “No” if this is your first time registering. Then, click “Next” to proceed.
8. Voluntary Disclosure Agreement Selection
Next, you need to decide if you want to enter into a Voluntary Disclosure Agreement (VDA) with the Utah State Tax Commission. Select “Yes/No” depending on your business situation and preference.
Then, click “Next” to continue.
Note: A VDA is an arrangement where the taxpayer voluntarily reports and pays their previously unpaid taxes. You may use this option to potentially reduce your penalties and have a limited look-back period. This depends on the circumstances of your disclosure.
9. Business Organizational Structure Details
Provide information regarding your LLC’s legal structure and business identity. This will be used by the Utah State Tax Commission to correctly classify your LLC for tax purposes.
a. Select Your Business Structure
Find the selection box to open the dropdown list. Then, pick “Limited Liability Company.”
b. Provide Your EIN
Enter your LLC’s EIN in the required field. This must be 9 digits.
You can read my guide for additional help if you don’t have an EIN: How To Get A Utah EIN For Your LLC.
c. Describe Your Business Activities
Next, enter a brief description of your business activities. You can use one or two simple and clear sentences for this section. Click “Next” to continue once you’ve entered the description.
Example: “We operate an online retail business that sells consumer electronics and accessories, including headphones, chargers, and smart home devices, to customers across the United States through our website and third-party marketplaces.”
10. Legal Entity Information Section
In this section, the state collects your LLC’s official legal details and contact information. The state uses this information for identification, correspondence, and administrative purposes performed by the Utah State Tax Commission.
a. Legal Entity Details
In the “Name Of Legal Entity” field, enter your LLC’s full legal name. Then, enter your business’s daytime phone number.
Note: This must be accessible during normal business hours, typically from 8:00 A.M. to 5:00 P.M.
You can complete the other optional fields. However, you don’t need them to proceed.
b. Entity’s Mailing Address
Enter your LLC’s mailing address. This should include your street address, city, ZIP code, and county. You can use a P.O. box for this section as you’ll be receiving official mail and correspondence.
Note: Your ZIP code must be entered using the 5+4 format (For example, 99999-9999).
Click “Verify” once you’ve entered your full address.
Once entered, you should see two or more address options. One should be your verified address, and the other should be the one you entered originally. Choose the one that best matches your actual address, then click “Save.”
Click “Next” in the bottom-right corner to continue to the next section.
11. DBA And Business Location Information
The next section is about your LLC’s trade name (If any) and physical operating location. This information helps the Utah Tax Commission identify where your business operates.
a. Doing Business As (DBA)
You can enter your other name if your LLC operates under a DBA or a trade name. You can leave this section blank and continue if this isn’t the case.
b. Business Physical Address
Enter the address where your business physically operates. This might be a retail store, office, warehouse, or a different working location.
b1. Business Physical Address Is The Same As Legal’s Entity Address
Select “Yes” if your business’s physical address is the same as your mailing address you previously entered.
Then, click “Next” to continue.
b2. Business Physical Address Differs From Legal’s Entity Address
Enter your physical business address (Street address, city, ZIP code, and county). You can NOT use a P.O. box for this section. Furthermore, your ZIP code must be entered in a 5+4 format (For example, 99999-9999).
Click “Verify” after entering your full address.
Note: The address entered is the address where you must display your business license at all times. This is according to the Utah administrative code.
You must submit Form TC-69B (Additional Business Location for a Sales Tax Account) and attach it as an additional document if you have more than one operating location. I’ve provided a guide on how to do this below.
You should again see two or more address options. This should include your verified address and the one you entered manually.
Choose the option that best suits your situation, then click “Save.”
Click “Next” after saving your information to proceed.
12. Legal Entity Contact Information
The next section collects the contact and address details associated with your LLC. This is for your legal, regulatory, and administrative purposes.
a. Legal Entity Contact Details
Enter your LLC’s email address. This will be used by the Utah State Tax Commission for official communications.
Note: You can skip the phone number field. This is because you’ve already given your daytime phone number earlier in your application.
b. Legal Entity Physical Address
This is the physical location associated with your LLC. This is used for official filings, regulatory purposes, and recordkeeping. It often reflects your registered office or business headquarters.
b1. Physical Address Is The Same As Mailing Address
Select “Yes” if your LLC’s physical address is the same as your mailing address previously entered.
Then, click “Next” to continue.
b2. Physical Address Is Not The Same As Mailing Address
Enter your LLC’s address if your physical address differs from your mailing address. You must give your street address, city, ZIP code, and county. You CAN use a P.O. box if needed.
Note: Your ZIP code must be entered in the 5+4 format (For example, 99999-9999).
Click “Verify” after entering your address.
Just like before, you’ll see two or more address options (Your verified address and the one you entered). Choose the best option and click “Save.” Click “Next” to continue to proceed to the next step.
13. Third-Party Authorization Option
In this section, you’ll be asked if you want to authorize a third party to communicate with the Utah State Tax Commission on your behalf. For example, this could be an accountant or tax representative.
Once authorized, the approved individual or company can discuss your tax matters, receive information, and help resolve issues. Choose “Yes/No” based on your preferences, then click “Next” to continue.
14. Business Owner And Officer Details
You must add information for one or more LLC owners or officers in this section. Each listed person must have a valid SSN. Repeat the same process if your LLC has multiple owners or officers.
Click “Add Officer” to begin.
a. Owner Or Officer Personal Information
Enter the individual’s first name and last name. Then, you must provide their SSN. This must contain 9 digits and be entered in the format XXX-XX-XXXX.
Other fields (EIN and title) are optional and can be completed if desired.
b. Owner Or Officer Address Details
Enter your LLC owners’ or officers’ address details (Street address, city, ZIP code, and county). The ZIP code must be entered in the 5+4 format (For example, 99999-9999).
Click “Verify” once you’ve entered the address. Then, click “Add” to save the information.
Click “Next” once you’ve added your required LLC officers or owners.
15. Sales And Use Tax Details – Part One
Provide information regarding how your business began selling or purchasing taxable items. Furthermore, estimate your annual taxable income. The information provided helps the Utah State Tax Commission determine your initial filing status.
Provide the date that your LLC started purchasing or selling taxable goods and/or services. You can use the calendar icon to select your date. This helps avoid any entry errors.
Next, click the dropdown menu and select the most suitable option regarding your LLC’s expected activity in the “Estimate your annual net sales and purchases subject to tax” field.
These are your available options:
- $16,000 or less.
- $16,000 – $800,000.
- $800,000 or more.
Enter a brief business description once you’ve selected the appropriate range. You can use one or two simple sentences for this section.
Example: “We operate an online and wholesale business that sells consumer goods, including home essentials, personal care products, and small household electronics. Our products are sold directly to customers through our website and third-party marketplaces.”
16. Sales And Use Tax Details – Part Two
Enter your LLC’s account mailing address in this section. The Utah State Tax Commission will send your statements, tax notices, and account-related correspondence to this address. This does NOT have to be the same as your business’s physical address.
a. Account Mailing Address Matches Legal Entity Address
Select “Yes” if your accounting mailing address is the same as your legal entity’s mailing address (You entered this earlier).
Then, click “Next” to continue.
b. Account Mailing Address Differs From Legal Entity Address
Enter the correct mailing address for tax correspondence if your accounting mailing address is different from your legal entity’s mailing address.
Provide your street address, city, ZIP code, and county. You can use a P.O. box for this section.
Your ZIP code must be entered in the 5+4 format (For example, 99999-9999). After entering your address, click “Verify.”
Choose between the two options displayed (Your verified address and your manually entered address). Then, click “Save” and “Next” in the bottom-right corner to proceed.
17. Sales And Use Tax Details – Part Three
You must answer several Yes/No questions related to your business operations in this section. This focuses on your business locations, services, delivery methods, and operational activities that change your sales and use tax obligations.
Click “Next” to continue once you’ve answered each question accurately based on your business operations.
Note: Choose “Yes” for question 2 if your LLC has different locations.
Then, submit Form TC-69B (Additional Business Location for a Sales Tax Account) and attach it as an additional document. I’ve guided you through how to do this below.
18. Sales And Use Tax Details – Part Four
This section contains Yes/No questions related to specific sales. This includes restaurant sales, grocery food, fuel, and other similar categories. The answers you give here help the Utah State Tax Commission to determine if your business needs special tax rules or reporting requirements.
Click “Yes” to proceed after completing the required questions.
19. Sales And Use Tax Details – Part Five
Finally, respond Yes/No to questions related to other business services. These include cell phone services, multi-channel audio services, and similar business activities.
After completing the questions based on your LLC’s operations, click “Next” to move forward to the next application step.
20. Sales Tax Applicant Information Notice
Next, provide the general information for sales tax applicants. This includes details about temporary sales tax licenses for special events. You won’t need to complete this section in most cases.
Click “Next” once you’ve reviewed the information.
21. Supporting Documents Upload
Attach any supporting documentation in this section. However, you’re not required to do so.
Attach Form TC-69B (Additional Business Location for a Sales Tax Account) if your business has many locations.
You must complete and attach Form TC-737, Power of Attorney and Declaration of Representative, if you previously chose to grant a third party authorization to discuss your account.
Do NOT upload password-protected documents. The Utah Tax Commission won’t be able to access and process these.
22. Authorization Acknowledgment
In this section, you must agree to the terms and conditions to submit your application. First, carefully review this information.
Then, select “Yes” once you understand and agree to the statements provided. Click “Next” to continue.
23. Electronic Signature Submission
Enter your full name, job title, and phone number in the requested fields. Then, turn on the e-signature option to certify your application once you’ve completed the required fields.
Click “Next” to continue once you’ve entered the required information.
24. Application Review Summary
Next, you should see a summary of your provided information. Review each section carefully to ensure accuracy.
Use the navigation options to go back and make changes if anything needs correcting. Click “Next” to continue once you’ve confirmed everything.
25. Submission Confirmation Step
Enter the email address where you wish to receive TAP account-related information and updates.
Click “Submit” to finalize your application after entering your email address.
26. Application Confirmation Page
You should be taken to a confirmation page once you’ve submitted your application. This will show that your registration was successfully submitted. You can click “Print Confirmation” if you require a physical copy for your records. Alternatively, click “OK” to return to the main page.
Congratulations! You’ve completed the registration process for your LLC’s Sales and Use Tax License.
Important: I highly recommend saving the configuration code. This is required if you need to access, review, or reference your submission.
How To Monitor Your Approval And Application Status
The Utah State Tax Commission provides submission tracking tools and explains how long processing will take once you’ve completed your filing. If you can understand this stage, you know when to expect your official license and account number.
1. Review Or Retrieve Your Submission
Navigate back to the TAP if you need to view or retract your submission before it’s processed.
Then, follow these steps once you’re on the TAP homepage:
- In the tools section, click “Find your submission.”
- Enter the same email address (The one you used when completing your submission).
- Enter your TAP confirmation code (The one in your TAP confirmation message).
This allows you to review your submitted information or withdraw your application if corrections are needed. You can only do this during the allowed time window.
2. Application Processing Timeline
Submissions are processed each weeknight around 5:00 P.M. (Mountain Time). Your submission is automatically deleted from the system once this period ends.
You should be issued your official Sales Tax License and account number within 3-5 business days following your submission.
Adding Additional LLC Locations
As I’ve mentioned above, you must attach Form TC-69B (Additional Business Location for a Sales Tax Account) if you have more than two Utah operating locations.
Use the Utah State Commission of Tax official website to download the form or click the download button on the right-hand side.
In the following sections, I’ve walked you through how to file your additional location form step-by-step.
1. General Information
a. Social Security Number (SSN) Or EIN
To begin, provide your personal SSN or your business EIN. You only need to enter your EIN in this section as you’re registering for your LLC.
b. Existing Sales Tax Account Number
You can leave this field blank. This section is only for business owners who need to add business locations AFTER gaining their official license.
c. Name Of Legal Entity
In this section, state your full legal LLC name and contact information:
- Enter your LLC name in capital letters for the entity name line. For example, JOHN DOE LLC.
- Enter your legal entity’s street address and mailing address exactly as you did for the TC-69 Online Form. As this is a PDF form, enter the state code “UT” for the state, and the ZIP code as 5 digits.
2. Certain Sales Activities
Next, you must complete a series of Yes/No questions. Answer “Yes” for any items that apply to your reported business locations.
3. Additional/New Business Locations
Next, enter the required LLC details for each of your new business locations:
- DBA/Business name: The business name used for the specific location.
- Business start date: The date the location began operating.
- Physical business address: The street address where you operate. You can NOT use a P.O. box.
- Business phone number: The telephone number for the specific location. This number does not replace your legal entity’s main phone number.
- City, county, state, and ZIP code: The full location details for your business site.
- Local Utah licensing authority: The local Utah government entity issuing your business license for the specific location.
- Business description: Describe if your specific business location offers different products or services than your main business location.
- Lodging services indicator: Choose Yes/No to indicate if you provide lodging services. This may include a motel, hotel, campground, trailer court, or something similar.
Note: You can add three new locations on this form. The next page can be used to add the other two locations (if needed). You must submit an additional TC-69B Form if you have more than three new business locations.
You can skip this section and proceed to the signature part if you have no new additional locations.
4. Authorized Signature
Enter your form completion date, which should be the same date that you’ve completed the form. After this, print the document and sign it by hand. Once signed, scan it into a PDF file, making sure both pages are scanned before completing your submission.
5. Attach The File To TC-69 Online Form
Upload your scanned PDF file to the form following the instructions provided in the previous section.
Congratulations! You’ve successfully submitted your TC-69B Form registering your new business locations.
Your Sales Tax Filing And Payment Obligations After Registering
You must file your Sales Tax Returns and regularly submit your payments once your LLC has been registered for its Sales and Use Tax License. Your Sales and Use Tax liability from the previous year determines your filing frequency.
The table below shows your annual tax liability, associated filing frequencies, and due dates.
| Annual tax liability | Filing status | Due dates |
|---|---|---|
| $1,000 or less | Annual filer | January 31 |
| $1,001 to $50,000 | Quarterly filer | April 30, July 31, October 31, January 31 |
| $50,001 to $96,000 | Monthly filer | Last day of the month following the end of the period |
| $96,001 or more | Monthly filer with mandatory EFT payments | Last day of the month following the end of the period |
Your Sales Tax Returns are due on the last day of the month following the filing period. For example, your return is due on January 31 of the following year if your LLC is an annual filer. Your deadline is automatically extended to the next business day if your due date falls on a Saturday, Sunday, or legal holiday.
Utah Sales Tax License Requirement
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Under Utah Administrative Code § R865-19S-7, each business location must have its own Sales and Use Tax License. If the same owner operates multiple locations, a single application may be submitted that includes information for all locations. However, a separate license will be issued for each location.
Each Sales and Use Tax License must be clearly displayed at the business location it applies to. The license should be placed where both customers and staff can easily see it during normal business operations.
Displaying your license properly helps demonstrate compliance during inspections or audits and ensures transparency for customers. Failure to display the license at the correct location may result in penalties or additional scrutiny from the Utah State Tax Commission.
Who Must Obtain A Utah Sales And Use Tax License?
The state sets clear rules determining when an LLC must collect and remit Sales and Use Tax. These are based on a seller’s connection or nexus with the state.
1. Physical Presence Nexus
A seller has a physical presence in the state and is subject to collect and pay Sales Tax if they engage in the following activities. This is set under the Utah Code § 59-12-107(2)(a).
- Operates or uses a store, warehouse, office, service business, or distribution center in the state.
- Maintains state inventory.
- Solicits sales in person in the state. This excludes email, mail, online, or phone advertising.
- Delivers goods regularly using the seller’s own vehicles rather than common carriers or the U.S. postal service.
- Participates regularly in activities related to maintaining, leasing, or servicing Utah property.
You’re considered to have a sufficient physical presence in the state if you meet any of these conditions. In this case, you’re legally required to collect and remit Utah Sales and Use Tax on taxable business transactions.
2. Nexus Through Related Sellers
A seller must collect and pay Utah Sales and Use Tax if they’re closely related to another seller or use the relationship to make sales to customers located in the state. This is set under the Utah Code § 59-12-107(2)(b).
This applies when a seller owns or is owned by a related seller and meets one or more of the following conditions:
- The seller offers the same or very similar products under the same or a similar business name.
- The seller uses the other seller’s employees, in-state location, or resources to advertise, facilitate, or promote sales to state customers.
Even without a physical state presence, using a related seller’s in-state activities to support sales causes a sufficient nexus to trigger Sales Tax.
3. Economic Nexus For Remote Sellers
According to the Utah Code § 59-12-107(2)(c), a remote seller with no physical presence in the state may still need to collect and pay Sales Tax if they meet the state’s economic nexus threshold.
You must collect Utah Sales Tax if the following applies or applied in the current or previous calendar year:
- You sold tangible personal property, electronically-delivered products, or taxable services for use in the state.
- Earned more than $100,000 in total gross sales from transactions within the state.
You’re considered to have an economic nexus in the state if you exceed this threshold. This means that you must register for a Sales and Use Tax License and start collecting and remitting Sales Tax.
4. Who Does Not Need The Sales And Use Tax License?
You do NOT need to get a Sales and Use Tax License under certain limited conditions set under the Utah Code § 59-12-106(2)(h). A license is NOT needed if you only sell tax-exempt items or you sell at a special event lasting six months or less where taxable sales occur.
Furthermore, a seller may be given a valid exemption certificate from a purchaser to document that their transaction is exempt from the Utah Sales and Use Tax. Once an exemption certificate is accepted, the seller does NOT need to collect Sales Tax on the transaction and may report the sale as exempt.
Following the sale, sellers must retain completed exemption certificates for at least three years as part of their business records. This must be done in case of audit or review by the Utah State Tax Commission.
a. Acceptable Utah Sales And Use Tax Exemption Certificates
Why Do You Need The Sales And Use Tax License?
You may face serious legal and financial consequences if you operate your LLC without complying with the Utah Sales and Use Tax requirements. These are imposed to stop state businesses from operating without the proper registration, reporting, and payment.
Obtaining your Utah Sales and Use Tax License allows your LLC to:
- Collect Utah Sales Tax from customers.
- Report taxable and exempt transactions.
- File Sales and Use Tax Returns and remit collected taxes.
Under the Utah Code § 59-12-106(2)(g), you must obtain a separate Sales Tax License for each operating location if you operate in two or more business locations. You can submit a single application to cover multiple locations if they’re owned by the same entity. However, each approved business location must have its own license for that business.
Utah does NOT charge a Sales and Use Tax registration fee. While there’s no initial fee, your compliance obligations begin immediately after you complete your registration. You must file your required Sales Tax Returns and complete the applicable payments, even when no taxable sales have occurred. This ensures you avoid interest or penalties and maintain your good standing.
1. Financial Penalties
Any business applying for or holding a Utah Sales and Tax License is responsible for paying all required Sales and Use Taxes under the Utah Code § 59-12-107(2)(f). This also includes paying the interest and penalties imposed for failing to pay taxes correctly or on time.
The state may impose multiple financial penalties if you don’t register, collect, report, or pay your sales tax. These penalties can quickly add up if you don’t promptly resolve the issue, regardless of whether your mistake was intentional or due to an oversight.
a. Penalties For Late Filing
You face a financial penalty if your tax return is filed late or the applicable taxes, fees, or charges are paid after your due date. This is mandated under the Utah Code § 59-1-401(2)(c).
Your penalty is calculated as a percentage of the unpaid tax, with a minimum penalty of $20. This is calculated as follows:
- 2% if your return is filed within 5 days after your due date.
- 5% if your return is filed more than 5 days but no more than 15 days late.
- 10% if your return is filed more than 15 days after your due date.
Once you miss a filing deadline, these penalties are automatically applied. This is alongside any interest accruing on your unpaid tax amount.
b. Penalties For Failure To Pay
You face a penalty if you file your Sales Tax Return on time but do NOT pay the tax owed. You’ll also be charged if your tax remains unpaid for 90 days after the due date. These rules are set under the Utah Code § 59-1-401(3)(b).
Again, your penalty is calculated as a minimum $20 penalty or as a percentage of the unpaid tax, fee, or charge. This is based on how late your payment is:
- 2% if the tax is paid within 5 days after your return due date.
- 5% if the tax is paid more than 5 days but no more than 15 days late.
- 10% if the tax is paid more than 15 days late.
These penalties apply when a payment is late, regardless of whether your return was submitted on time. They may be charged in addition to other late filing penalties and interest.
c. More Serious Penalties For Severe Violations
The state can impose heavier penalties if your LLC underpays its Sales and Use Tax under the Utah Code § 59-1-401(7)(a). This depends on how serious the underpaying is. The state charges these penalties in addition to other penalties and interest.
Generally speaking, your penalty amount is based on how intentional your mistake is:
- Negligence: A 10% penalty will be imposed if you were careless or did not take responsible steps to follow the law.
- Intentional disregard of the law or rules: A 15% penalty will be imposed if you knew the rules but chose to ignore them.
- Intent to evade tax: You face a 50% penalty on the unpaid tax or $500 per period (whichever is greater). This applies if you intentionally chose to avoid paying your required taxes.
- Fraud with intent to evade tax: You face a 100% penalty on the underpaid amount of a fee of $500 per period (whichever is greater). This applies when intentional fraud is involved.
These are set out to punish serious violations. When imposed, they can dramatically increase how much you owe if you ignore your Sales Tax obligations.
2. Criminal Penalties
According to the Utah Code § 59-1-401(12)(b), operating your LLC without registering or maintaining a required tax license is a criminal offense.
This is classed as a Class B misdemeanor, meaning you face potential criminal penalties. These may include:
- A fine of at least $500.
- A fine of no more than $1,000.
Failing to register for your required Sales and Use Tax License is much more than just a regulatory issue. You can face serious criminal consequences, financial penalties, interest, and back taxes.
3. Interest Charged On Unpaid Taxes
You’ll be charged interest whenever there is an underpayment, deficiency, or late payment on any taxes, fees, and charges, including the Sales and Use Tax. This is set under the Utah Code § 59-1-402.
I’ve briefly discussed how this works below:
- Interest is charged as simple interest and based on the federal short-term rate set by the U.S. Treasury, plus 2%.
- Your interest begins from your original tax return due date.
- Even if you have a filing exemption, you still face interest until your tax is fully paid.
As interest continues to build, your unpaid sales tax balance can quickly grow. I highly recommend completing your obligations as soon as possible to minimize your potential taxes owed.
4. Loss Of LLC Operating Rights
You’re legally required to collect Sales Tax from customers and hold their money in a state trust when making taxable sales. If you operate without a sales tax license, you’re breaking the law and are seen as committing a criminal violation.
The Utah State Tax Commission may revoke your Sales and Use Tax License if you violate certain requirements set under the Utah Code § 59-12-106(2)(j). This is after providing notice and opportunity for a hearing.
a. License Reinstatement Requirements
You will NOT get your license reinstated once it’s revoked until you fully comply with Utah law. This means that you must:
- Pay your outstanding sales and use taxes.
- Pay your penalties under Utah Code § 59-1-401.
- Pay your interest under Utah Code § 59-1-402.
- Post a required surety bond under Utah Code § 59-12-106(2)(e) and (f).
Note: Your required bond may range from $25,000 to $500,000 if your license was revoked due to tax delinquency.
Contact Information For The Utah State Tax Commission
Contact the Utah State Tax Commission using the options below if you need assistance with your sales and use tax, tax filings, or tax compliance.
- Phone: 801-297-2200 or 1-800-662-4335.
- Email: [email protected].
- Business hours: Monday to Friday, 8:00 A.M. to 5:00 P.M (Mountain Time).
- Mailing address: Utah State Tax Commission, 210 North 1950 West, Salt Lake City, UT 84134.
Frequently Asked Questions
Apply online via the TAP. This requires you to provide your business and ownership details, select “Sales & Use Tax,” and submit your application to receive your license, once approved.
2026 Utah LLC Guides
ABOUT THE AUTHOR
+ 17 sources
Bizreport Advisor adheres to strict editorial integrity standards avoids using tertiary references. We have strict sourcing guidelines and rely on peer-reviewed studies, academic research. To ensure the accuracy of articles in Bizreport, you can read more about the editorial process here.
- Utah.gov. (2025). Utah Code Section 59-12-106. [online] Available at: https://le.utah.gov/xcode/Title59/Chapter12/59-12-S106.html?v=C59-12-S106_2023050320230503.
- Utah.gov. (2016). Sales & Use Tax Rates | Utah State Tax Commission. [online] Available at: https://tax.utah.gov/business/sales-tax/sales/rates/.
- Utah.gov. (2025b). Utah’s Taxpayer Access Point. [online] Available at: https://tap.tax.utah.gov/TaxExpress/.
- Utah State Tax Commission (2025) TC-69B: Additional Business Locations for an Existing Sales Tax Account [PDF]. Available at: https://files.tax.utah.gov/tax/forms/current/tc-69b.pdf.
- Utah State Tax Commission (2024) TC-737: Power of Attorney and Declaration of Representative [PDF]. Available at: https://files.tax.utah.gov/tax/forms/current/tc-737.pdf.
- Utah State Tax Commission (n.d.) Utah income taxes. Available at: https://incometax.utah.gov/.
- Utah.gov. (2026). Commission | TAX – Production. [online] Available at: https://tax.utah.gov/commission/.
- Utah.gov. (2026). Utah Office of Administrative Rules. [online] Available at: https://adminrules.utah.gov/public/rule/R865-19s/Current%20Rules?searchText=R865-19S-74.
- Utah Legislature (2025) Utah Code Ann. § 59-12-107 — Collection, remittance, and payment of tax by sellers or other persons; returns; reports; direct payment by purchaser of vehicle; other liability for collection; rulemaking authority; credits; treatment of bad debt; penalties. Available at: https://le.utah.gov/xcode/Title59/Chapter12/59-12-S107.html.
- Utah State Tax Commission (2025) TC-721: Exemption Certificate (Sales, Use, Tourism and Motor Vehicle Rental Tax) [PDF]. Available at: https://files.tax.utah.gov/tax/forms/current/tc-721.pdf.
- Utah State Tax Commission (2024) TC-721A: Sales and Use Tax Exemption Affidavit for Exclusive Use Outside of Utah [PDF]. Available at: https://files.tax.utah.gov/tax/forms/current/tc-721a.pdf.
- Utah State Tax Commission (2025) TC-721DP: Sales and Use Tax Exemption Certificate for Direct Payment Permit [PDF]. Available at: https://files.tax.utah.gov/tax/forms/current/tc-721dp.pdf.
- Utah State Tax Commission (2025) TC-721G: Exemption Certificate for Governments and Schools [PDF]. Available at: https://files.tax.utah.gov/tax/forms/current/tc-721g.pdf.
- Utah State Tax Commission (2025) TC-721NR: Sales Tax Exemption Certificate for Non-Utah Retailers Accepting Merchandise Delivery in Utah [PDF]. Available at: https://files.tax.utah.gov/tax/forms/current/tc-721nr.pdf.
- Utah State Tax Commission (2025) TC-73: Sales Tax Exemption Contract (Religious and Charitable Organizations) [PDF]. Available at: https://files.tax.utah.gov/tax/forms/current/tc-73.pdf.
- Utah State Tax Commission (2025) TC-719: Sales and Use Tax Exemption Affidavit for Authorized Interstate Carriers [PDF]. Available at: https://files.tax.utah.gov/tax/forms/current/tc-719.pdf.
- Utah Legislature (2025) Utah Code Ann. § 59-1-401 – Definitions; offenses and penalties; rulemaking authority; statute of limitations; commission authority to waive, reduce, or compromise penalty or interest. Available at: https://le.utah.gov/xcode/Title59/Chapter1/59-1-S401.html.
- Utah Legislature (2025) Utah Code Ann. § 59-1-402 – Definitions; interest (effective Jan. 1, 2026). Available at: https://le.utah.gov/xcode/Title59/Chapter1/59-1-S402.html.