Bakery Permits & Licenses in Orem, UT

Complete guide to permits and licenses required to start a bakery in Orem, UT. Fees, renewal cycles, and agency contacts.

Utah LLC Registration (Articles of Organization)

Utah Division of Corporations and Commercial Code
Required
Fee: $54.00-$54.00
Renewal: one time
Type: registration

Required for all LLCs. Annual renewal report separate (see below).

Utah LLC Annual Renewal Report

Utah Division of Corporations and Commercial Code
Required
Fee: $18.00-$18.00
Renewal: annual
Type: registration

Applies to all LLCs. File online via SilverFlume portal.

Utah State Tax Commission Registration (CRN)

Utah State Tax Commission
Required
Fee: $0.00-$0.00
Renewal: one time
Type: registration

Obtain Combined Tax Rate (CRN) for sales tax. All businesses selling taxable goods (including baked goods) must register.

Assumed Name (DBA) Registration

Utah Division of Corporations and Commercial Code
May Apply
Fee: $22.00-$22.00
Renewal: one time
Type: registration

Required if bakery uses a trade name/DBA. Renews with annual report.

Retail Food Facility License

Utah Department of Agriculture and Food (UDAF)
May Apply
Fee: $365.00-$365.00
Renewal: annual
Type: license

Required for bakeries selling potentially hazardous baked goods (e.g., cream-filled). Plan review required pre-opening ($300+). Home-based exempt under separate cottage food rules.

Food Handler Permit (for employees/owner)

Utah Department of Health and Human Services
May Apply
Fee: $25.00-$25.00
Renewal: one time
Type: permit

Required for all food handlers in retail food establishments. Valid 3 years.

Utah State Sales Tax License

Utah State Tax Commission
Required
Fee: $21.00-$21.00
Renewal: one time
Type: registration

All bakeries selling tangible goods (e.g., bread, pastries) must obtain a sales tax license. This applies even if operating as an LLC. The license is issued electronically and is required to collect and remit sales tax on taxable retail sales.

Utah Sales and Use Tax Filing

Utah State Tax Commission
Required
Renewal: one time
Type: permit

Bakeries must file sales tax returns for all taxable retail sales. Utah generally taxes retail sales of prepared food. Filing frequency is determined by the Tax Commission based on sales volume.

Utah Withholding Tax Registration

Utah State Tax Commission
May Apply
Renewal: one time
Type: registration

Required for all employers with employees working in Utah. Applies to bakeries that hire staff. Registration includes withholding state income tax from employee wages.

Utah Withholding Tax Filing and Payment

Utah State Tax Commission
May Apply
Renewal: one time
Type: permit

Employers must file periodic withholding tax returns and remit taxes withheld from employee wages. Frequency is assigned by the Tax Commission based on liability volume.

Utah Unemployment Insurance Tax Registration

Utah Workforce Services
May Apply
Renewal: one time
Type: registration

All employers with employees in Utah must register for Unemployment Insurance (UI) tax. Employers pay this tax; employees do not contribute in Utah.

Utah Unemployment Insurance Tax Filing and Payment

Utah Workforce Services
May Apply
Renewal: one time
Type: filing

Employers must file Form UC-6 each quarter and remit unemployment insurance tax. Rate is experience-rated after the first few years.

Utah Annual Report and License Renewal

Utah Division of Corporations and Commercial Code
Required
Fee: $18.00-$18.00
Renewal: one time
Type: permit

All Utah LLCs must file an Annual Report and renew their business license. This is a state requirement for maintaining good standing, separate from tax filings.

Utah County or Municipal Business License (Privilege Tax)

Local County or City Government
May Apply
Fee: $25.00-$100.00
Renewal: one time
Type: permit

Most Utah cities and counties require a local business license or privilege tax. For example, Salt Lake City requires a Business Registration for all businesses operating within city limits. Bakeries are not exempt. Verify with local clerk’s office.

FTC Compliance with Truth-in-Advertising and Labeling

Federal Trade Commission (FTC)
Required
Renewal: one time
Type: permit

Applies to all businesses. Bakery-specific rules include truthful advertising (e.g., “organic,” “gluten-free”), proper use of endorsements, and avoiding deceptive pricing. Also includes compliance with the FTC’s Guides for the Use of Environmental Marketing Claims (e.g., “eco-friendly” packaging).

DOL I-9 Employment Eligibility Verification

Department of Homeland Security (DHS) / USCIS
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

All employers must complete Form I-9 for each employee to verify identity and work authorization. Applies to U.S. citizens and non-citizens. E-Verify is not required federally unless in certain federal contracts or state-mandated.

Utah State Income Tax Registration (for pass-through entities)

Utah State Tax Commission
May Apply
Renewal: one time
Type: registration

Utah does not impose a corporate income tax on traditional C corporations at the same rate as other states, but pass-through entities (like most LLCs) are generally not subject to Utah entity-level income tax. However, owners must report income on personal returns. If the LLC elects corporate taxation, it must register and file Form TC-20.

No State Franchise or Gross Receipts Tax

Utah State Tax Commission
Required
Renewal: one time
Type: registration

Utah does not impose a franchise tax or gross receipts tax on businesses. This distinguishes it from states like California or Washington. The primary taxes are sales tax, withholding, and unemployment insurance.

Salt Lake County Business License

Salt Lake County Clerk
May Apply
Fee: $100.00-$300.00
Renewal: annual
Type: license

Required for all businesses; bakeries classified under retail/food service

Salt Lake City Business License

Salt Lake City Corporation
May Apply
Fee: $125.00-$125.00
Renewal: annual
Type: license

Bakery falls under "Food Establishment" category; state license prerequisite

Zoning Compliance Verification

City/County Planning & Zoning
May Apply
Fee: $0.00-$100.00
Renewal: one time
Type: permit

Bakery typically allowed in C-2/C-3 zones; home occupation restricted

Health Department Food Service Permit

Salt Lake County Health Department
Required
Fee: $320.00-$320.00
Renewal: annual
Type: permit

Required for all bakeries; includes plan review ($450) for new construction

Building Permit

Local Building Department (e.g., Salt Lake City)
May Apply
Renewal: one time
Type: permit

Required for bakery fit-outs including ovens, ventilation

Fire Safety Inspection and Permit

Salt Lake City Fire Department
Required
Fee: $100.00-$250.00
Renewal: annual
Type: permit

Bakeries require hood suppression systems per IFC 2021

Certificate of Occupancy

Local Building Official
May Apply
Renewal: one time
Type: permit

Verifies zoning, building, fire, health compliance

Sign Permit

Local Planning Department (e.g., Salt Lake City)
May Apply
Fee: $75.00-$300.00
Renewal: one time
Type: permit

Max size 1.5 sq ft per linear foot of building frontage

Fire Alarm Permit

Local fire marshal
May Apply
Fee: $75.00-$250.00
Renewal: one time
Type: permit

Annual monitoring required; false alarm fees apply

Home Occupation Permit

Varies by city/county (e.g., Salt Lake City)
May Apply
Fee: $50.00-$150.00
Renewal: one time
Type: permit

Limited to 25% of home; no on-site sales for food businesses

Workers' Compensation Insurance

Utah Labor Commission - Division of Industrial Accident
May Apply
Fee: $1.50-$3.50
Renewal: one time
Type: certificate

Required for all employers with one or more employees in Utah, including part-time workers. Sole proprietors and partners are exempt unless they elect coverage. Agricultural workers and domestic workers in private homes may have different thresholds. Bakers with employees must carry coverage.

General Liability Insurance

Not applicable (no state mandate)
May Apply
Fee: $500.00-$2000.00
Renewal: one time
Type: certificate

While not statutorily required by Utah state law, general liability insurance is effectively mandatory through third-party requirements (e.g., city business licenses, commercial leases). Covers third-party bodily injury or property damage (e.g., customer slips and falls).

Commercial Auto Insurance

Utah Department of Public Safety - Driver License Division
May Apply
Fee: $1200.00-$2500.00
Renewal: one time
Type: certificate

Required under Utah Code §41-12a-104 for all motor vehicles operated commercially. Personal auto policies do not cover business use. Applies if the bakery owns or regularly uses vehicles for deliveries or supplies.

Surety Bond – Food Service Establishment Bond (if applicable)

Utah Department of Health and Human Services, Office of Public Health
May Apply
Fee: $1000.00-$10000.00
Renewal: one time
Type: certificate

Not uniformly required statewide, but some Utah counties or municipalities may require a surety bond as part of food service licensing. Most common in temporary or mobile food operations. Check with local health department. Not mandated by state law but possible under local ordinance.

Product Liability Insurance

Not applicable
Required
Renewal: one time
Type: certificate

Not legally required by Utah state law, but strongly recommended for bakeries selling consumable goods. Covers claims of illness or injury due to food products. Often bundled with general liability insurance. Required by many event organizers, farmers' markets, and wholesale buyers.

Professional Liability / Errors and Omissions Insurance

Not applicable
May Apply
Fee: $500.00-$1500.00
Renewal: one time
Type: certificate

Not legally required in Utah. However, recommended for bakeries offering custom cakes or event contracts where disputes over design, delivery, or quality may arise. Protects against claims of negligence or failure to perform.

DOL Minimum Wage and Overtime Compliance (FLSA)

Department of Labor (DOL)
May Apply
Renewal: one time
Type: permit

Applies to all non-exempt employees. Federal minimum wage is $7.25/hour; Utah has same rate. Overtime must be paid at 1.5x regular rate for hours over 40/week. Common bakery roles (bakers, cashiers) are typically non-exempt.

DOL Family and Medical Leave Act (FMLA) Compliance

Department of Labor (DOL)
May Apply
Renewal: one time
Type: permit

Requires eligible employees (worked 1,250 hours in past 12 months, employed 12 months) to be granted up to 12 weeks of unpaid, job-protected leave annually. Most small bakeries do not meet threshold.

EPA Compliance for Waste and Chemical Use

Environmental Protection Agency (EPA)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Most bakeries have minimal EPA exposure. However, improper disposal of commercial grease, solvents, or refrigerants (e.g., from walk-in coolers) may trigger Clean Water Act or RCRA regulations. Spill prevention plans may be required for large oil storage.

Annual Report Filing for LLC

Utah Division of Corporations and Commercial Code
Required
Fee: $18.00-$18.00
Renewal: annual
Type: permit

All Utah LLCs must file an annual report with the Division of Corporations. The report can be filed online via the Utah Business Center. The due date is the anniversary of the formation date of the LLC.

Sales Tax License Renewal

Utah State Tax Commission
Required
Renewal: one time
Type: license

Sales tax licenses in Utah are renewed automatically every two years. No application or fee is required for renewal, but businesses must remain compliant with all reporting obligations. The Utah State Tax Commission assigns renewal cycles.

Sales Tax Filing and Payment

Utah State Tax Commission
Required
Renewal: one time
Type: filing

Bakeries collecting sales tax must file periodic returns (Form TC-720) with the Utah State Tax Commission. Filing frequency is assigned by USTC based on sales volume. Most small bakeries file quarterly.

Estimated Income Tax Payments (for LLC owners)

Utah State Tax Commission
May Apply
Renewal: varies
Type: permit

LLC owners (as pass-through entities) must make quarterly estimated tax payments if they expect to owe $1,000 or more. Deadlines follow the standard quarterly schedule.

Federal Estimated Tax Payments

Internal Revenue Service (IRS)
May Apply
Renewal: varies
Type: permit

Owners of pass-through entities like LLCs must make quarterly estimated federal tax payments if they expect to owe $1,000 or more in federal taxes.

Utah Labor Law Postings

Utah Labor Commission
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Employers must display current labor law posters in a conspicuous location accessible to employees. Required posters include Utah Minimum Wage, OSHA Notice, EEO, and Family Leave. Posters can be downloaded from the Utah Labor Commission website.

Liquor Liability Insurance

Utah Department of Alcoholic Beverage Control (DABC)
May Apply
Renewal: one time
Type: certificate

Required only if the bakery holds a liquor license. Utah DABC mandates proof of liquor liability insurance (typically $1 million coverage) for all licensees. Most bakeries do not serve alcohol, so this is conditional.

Obtain an Employer Identification Number (EIN)

Internal Revenue Service (IRS)
May Apply
Renewal: one time
Type: permit

Required for tax administration purposes. Single-member LLCs with no employees may use the owner's SSN, but obtaining an EIN is recommended for banking and vendor purposes.

Federal Income Tax Filing for LLC

Internal Revenue Service (IRS)
May Apply
Fee: $200.00-$500.00
Renewal: one time
Type: permit

By default, a single-member LLC files as a disregarded entity using Schedule C. Multi-member LLCs file Form 1065 (partnership). Election to be taxed as S-corp or C-corp requires Form 2553 or 8869.

OSHA Workplace Safety Compliance

Occupational Safety and Health Administration (OSHA)
May Apply
Fee: $100.00-$100.00
Renewal: one time
Type: permit

Applies to all employers with employees. Bakery-specific risks include oven safety, slip hazards, and equipment use. Required to provide a safe workplace, post OSHA poster (Form 2203), and report fatalities or hospitalizations within 8–24 hours.

ADA Compliance for Public Accommodations

Department of Justice (DOJ)
May Apply
Fee: $1000.00-$10000.00
Renewal: one time
Type: permit

Bakeries open to customers must comply with Title III of the ADA. Requirements include accessible entrances, counters, restrooms, and signage. Online ordering systems must also be accessible.

FDA Food Facility Registration

Food and Drug Administration (FDA)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: registration

All bakeries that produce food for sale must register with FDA under the Food Safety Modernization Act (FSMA). Registration must be renewed every even-numbered year (between October 1–December 31).

FDA Food Safety System (FSMA Preventive Controls)

Food and Drug Administration (FDA)
May Apply
Fee: $500.00-$5000.00
Renewal: one time
Type: permit

Requires a written Food Safety Plan including hazard analysis, preventive controls, monitoring, corrective actions, and verification. Applies to facilities registered with FDA. Small businesses (fewer than 500 full-time employees) may qualify for modified requirements.

Display of Business License

Utah Department of Commerce
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Utah law requires display of the state-issued business license or registration at the place of business. Local jurisdictions may have additional posting requirements.

Federal Labor Law Postings

U.S. Department of Labor
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Federal law requires display of the Minimum Wage poster (FLSA), Employee Polygraph Protection Act, and OSHA Workplace Safety poster. These must be visible to employees. Available for free download from DOL website.

Health Department Inspection

Local Health Department (e.g., Salt Lake County Health Department)
May Apply
Fee: $0.00-$100.00
Renewal: one time
Type: permit

All retail food establishments in Utah are subject to routine inspections by the local health department. Bakeries are typically inspected annually, but high-risk operations may be inspected more frequently. Inspection results must be posted if required by jurisdiction.

Fire Department Inspection

Local Fire Department (e.g., Salt Lake City Fire Department)
May Apply
Fee: $0.00-$0.00
Renewal: annual
Type: permit

Commercial food establishments may be subject to fire safety inspections to ensure compliance with fire codes, including proper storage of flammable materials, fire extinguishers, and emergency exits. Frequency varies by local fire district.

Food Handler Permit (for employees)

Local Health Department
May Apply
Fee: $23.00-$23.00
Renewal: one time
Type: license

In Salt Lake County and many other Utah jurisdictions, food handlers must obtain a permit valid for 3 years. Requires passing a test on food safety. Other counties may have similar requirements.

Business License Renewal (Local)

Local Municipality (e.g., Salt Lake City, West Valley City)
May Apply
Fee: $50.00-$200.00
Renewal: annual
Type: license

Most Utah cities and counties require a local business license. Renewal is typically annual. Fees vary by location and business type. For example, Salt Lake City charges $25 for home-based and $100 for commercial businesses.

Record-Keeping for Sales Tax

Utah State Tax Commission
Required
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Businesses must keep sales tax records (invoices, returns, exemption certificates) for at least 4 years. Records must be available for audit upon request.

OSHA Injury and Illness Recordkeeping

Occupational Safety and Health Administration (OSHA)
May Apply
Renewal: annual
Type: permit

Most small bakeries are exempt from routine OSHA recordkeeping due to size and industry classification. However, all employers must report fatalities or serious incidents within 8 hours (fatality) or 24 hours (hospitalization, amputation, loss of eye).

Federal Employer Identification Number (EIN) Reporting

Internal Revenue Service (IRS)
May Apply
Renewal: one time
Type: filing

Employers must file Form 941 quarterly, W-2 forms by January 31, and 1099-NEC by January 31 if applicable. EIN is required for payroll tax reporting.

Utah Withholding Tax Filing

Utah State Tax Commission
May Apply
Fee: $0.00-$0.00
Renewal: varies
Type: filing

Employers must file Form TC-941 (Utah Withholding Tax Return) based on assigned frequency. Most small employers file quarterly.

Unemployment Insurance Tax Filing (UI)

Utah Department of Workforce Services
May Apply
Renewal: varies
Type: filing

Employers must file quarterly UI reports (Form UI-6) and pay unemployment insurance tax. New employers pay 2.0% on first $34,000 in wages per employee (as of 2024).

Step-by-Step Compliance Guide

  1. Register your business with the Internal Revenue Service (IRS) to obtain an Employer Identification Number (EIN), which is free.
  2. Comply with Federal Trade Commission (FTC) truth-in-advertising standards, ensuring all marketing materials are accurate and not misleading.
  3. Retain all tax records as required by the IRS, with costs varying depending on your record-keeping method.
  4. File federal income tax returns, potentially using Form 1120-S or 1065 depending on your business structure, with associated fees varying.
  5. Understand your federal income and self-employment tax obligations as an LLC, as fees are dependent on income.
  6. Ensure compliance with FTC truth-in-advertising and labeling requirements, which may incur varying fees.
  7. File federal income tax registration, which is required but has no associated fee.
  8. Consider cyber liability insurance, with premiums ranging from $500.00 to $1200.00, though it is not federally mandated.

Common Mistakes to Avoid

  • Failing to obtain an EIN can result in penalties from the IRS.
  • Incorrectly classifying your business for tax purposes can lead to significant financial repercussions.
  • Ignoring FTC advertising standards can lead to legal action and fines.
  • Poor record-keeping can result in penalties during an IRS audit.
  • Not filing federal income taxes on time will incur penalties and interest.

Frequently Asked Questions

What is an EIN and why do I need one?

An Employer Identification Number (EIN) is a unique tax ID number assigned by the IRS to businesses operating in the United States; it's essentially a Social Security number for your business and is required for many business operations.

Are there costs associated with FTC compliance?

While basic FTC compliance with truth-in-advertising is generally free, you may incur costs if you need legal counsel to review your advertising materials or if you are found to be in violation of FTC regulations.

What are the penalties for not retaining tax records?

The IRS can impose penalties if you fail to keep adequate records to verify the accuracy of your tax return; the amount of the penalty depends on the severity of the non-compliance.

What is the purpose of food recall insurance?

Food recall insurance helps cover the costs associated with recalling a product from the market due to contamination or other safety concerns, potentially ranging from $800.00 to $2000.00.

Does my bakery need to comply with federal sales tax regulations?

Currently, there is no federal sales tax, but your bakery will need to comply with Utah state sales tax regulations and collect and remit sales tax as required by the Utah State Tax Commission.

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