Complete guide to permits and licenses required to start a coffee shop / cafe in Orem, UT. Fees, renewal cycles, and agency contacts.
Traffic impact analysis may be required for high-volume locations.
Verifies code compliance for commercial food space.
Required for all LLCs. Annual renewal report also required (see separate entry).
Applies to all LLCs; filed online via SilverFlume portal.
Renewal required before expiration (10-year term); searchable statewide database.
File via Taxpayer Access Point (TAP); monthly/quarterly returns required based on revenue.
Certification allows charging full 7.25%+ sales tax on prepared items; display certificate at business.
Issued by local health department (e.g., Salt Lake County Health); plan review required pre-opening. State rules at https://health.utah.gov/foodsafety/
Covers extinguishers, exits, kitchen suppression. Adopted IFC 2018.
Specific to assembly/food service occupancy.
Typically prohibits food sales/employees; not viable for full cafe.
Required for all employers with one or more employees, full- or part-time. Sole proprietors are not required to cover themselves unless they opt in. Exemption applies only if no employees are hired.
Not legally required by Utah state law for coffee shops, but strongly recommended and often required by landlords, leases, or local health departments. May be mandated indirectly through municipal agreements or property contracts.
Coffee shops typically do not sell these; included for completeness if applicable.
Standard coffee shop/cafe does not serve alcohol; requires location approval and training.
Required for all businesses selling tangible goods or certain services, including prepared food and beverages. Coffee shops must collect and remit sales tax on all taxable sales. The statewide rate is 4.85%, plus local option taxes (typically 1-3%).
Mandatory for employers in Utah. Employers must withhold state income tax from employee wages and remit it to the Utah State Tax Commission. Registration is done via Form TC-69.
Required if the coffee shop owns or regularly uses vehicles for deliveries, mobile service, or employee transport. Applies to all registered vehicles under the business name.
A surety bond may be required when applying for a Sales Tax License if the business or owner has a history of delinquent taxes. Businesses with good credit may be exempt. Minimum bond amount: $1,000; typically $10,000.
Not legally required in Utah, but highly recommended for businesses selling food and beverages. Covers claims related to illness, contamination, or injury from products sold. Often included in general liability or umbrella policies.
Mandatory for any coffee shop that sells alcoholic beverages (e.g., wine or beer in the evening). Minimum coverage typically $1 million per incident. Required as a condition of liquor license issuance.
Required for all coffee shops selling food to the public. Includes facility inspections, employee food handler certification, and adherence to health codes. Non-compliance may affect insurance validity and business operations.
While not required for all single-member LLCs with no employees, most coffee shops will need an EIN for banking and tax purposes. Application is free via IRS Form SS-4.
LLCs are pass-through entities by default. Coffee shop income flows to owners' personal tax returns. Multi-member LLCs must file Form 1065; single-member may file Schedule C.
Owners must pay self-employment tax via Form 1040-ES. Applies even if no employees are hired.
Requires maintaining a safe workplace, including proper handling of hot equipment (espresso machines, ovens), slip-resistant flooring, and accessible emergency exits. Injury logs required if 11+ employees.
Applies to all public-facing businesses. Coffee shops must ensure accessible entrances, counters, restrooms (if provided), and seating. Includes digital accessibility if online ordering is offered.
Coffee shops that serve food (pastries, sandwiches) or brew coffee for on-site consumption must register with FDA. Registration renewed every 2 years (odd-numbered years, next due 2025).
FDA publishes the Food Code, which Utah adopts through its health regulations. Includes food handling, storage, cross-contamination prevention, and employee hygiene. Required for coffee shops serving food.
Prohibits deceptive advertising (e.g., false claims about organic ingredients, origin of beans, health benefits). Applies to menus, websites, and social media. "Made with organic coffee" must meet USDA NOP standards.
Sets federal minimum wage ($7.25/hr), overtime (1.5x after 40 hours), and recordkeeping requirements. Coffee shop employees must be properly classified (non-exempt).
Employers must register with Utah Workforce Services to pay state unemployment insurance (SUI) tax. New employers pay a standard rate of 2.7% on the first $40,500 of each employee's wages (as of 2024).
Utah does not impose a corporate income tax or franchise tax on LLCs. However, LLCs are pass-through entities; owners report income on personal Utah income tax returns (Form TC-40). No separate entity-level tax is due.
Most Utah cities (e.g., Salt Lake City, Provo, Ogden) require a local business license or privilege tax. Fees and requirements vary. Coffee shops must check with the city or county clerk where they operate.
Only applies if the coffee shop operates a bed and breakfast or similar lodging. Standard rate is 4.95% state tax plus local option taxes. Not applicable to typical cafes without lodging.
All LLCs must obtain a Federal Employer Identification Number (EIN), even without employees. Used for federal tax reporting. Required for opening business bank accounts and state tax registration.
Required in all Utah municipalities. Check specific city code (e.g., SLC Code 5.68). Fees from current schedules.
Applies if operating outside city limits. Example: Salt Lake County requires for unincorporated areas.
Must complete Form I-9 for every employee, verifying identity and work authorization. Employers must retain for 3 years after hire or 1 year after employment ends.
Requires eligible employees (12 months, 1,250 hours) to receive up to 12 weeks of unpaid, job-protected leave annually. Most small coffee shops are exempt.
Small batch roasting (under 1,000 lbs/week) may be exempt. Larger operations may need Prevention of Significant Deterioration (PSD) permits or comply with New Source Performance Standards (NSPS).
Requires TTB Basic Permit (Form 5630.5t) in addition to state and local alcohol licenses. Required even for limited beer/wine service.
All Utah LLCs must file an annual report by April 1st each year to remain in good standing. The report includes business address, registered agent information, and management structure. This is a state-level requirement for all LLCs regardless of industry.
The Sales Tax License (also known as a Seller’s Permit) is issued once and does not expire. However, businesses must remain compliant with filing and payment requirements. This applies to all businesses selling taxable goods or services, including coffee shops selling food and beverages.
All coffee shops collecting sales tax must file returns electronically via TaxExpress. Filing frequency (monthly or quarterly) is assigned by the Tax Commission based on sales volume. Applies to all retail food service businesses.
LLC owners (as pass-through entities) must make quarterly estimated tax payments on business income. This is a personal obligation of the owner(s), not the business entity.
Self-employed individuals, including LLC members, must make quarterly estimated tax payments for federal income and self-employment taxes. This is a federal requirement for all pass-through business owners.
All coffee shops serving food or beverages must obtain and renew a food service license from the local health department. Inspections are conducted at least once per year, often more frequently for new establishments. Required in all Utah counties. Fees vary by jurisdiction.
Commercial buildings with public occupancy are subject to annual fire safety inspections. Inspectors check for proper exits, fire extinguishers, suppression systems (if applicable), and compliance with NFPA codes. Required in all Utah municipalities.
Employers must register for Utah withholding tax, withhold state income tax from employee wages, and file returns. Deposit frequency (monthly or semi-weekly) depends on the amount withheld. Applies to all Utah employers.
Single-member LLCs without employees may use the owner’s SSN, but most open a separate EIN for banking and liability purposes. EIN is required for all employers and remains valid indefinitely.
Federal law requires all employers to display the OSHA poster informing employees of their rights and responsibilities under the OSH Act. Can be downloaded free from OSHA website. Applies to all U.S. employers with employees.
Employers in Utah must display current state and federal labor law posters, including minimum wage, anti-discrimination, and family leave notices. Available for free download from the Utah Department of Workforce Services.
Must verify commercial zoning allows food service. Specific to property location (e.g., SLC Zoning Code Title 21).
Required for cafe build-out (e.g., counters, plumbing). Fees per adopted International Building Code schedules.
Regulated by local sign ordinances (e.g., SLC Code 21A.26).
Mandatory for coffee shops serving food/beverages. Complies with Utah Public Health Code R392-100.
Businesses must keep records of all sales, purchases, tax returns, and supporting documents for a minimum of 4 years. Applies to all businesses with a Sales Tax License in Utah.
An Employer Identification Number (EIN) is a unique tax ID number assigned by the IRS to businesses operating in the United States. You'll need an EIN to file federal taxes, open a business bank account, and potentially hire employees.
Yes, even if your LLC is a pass-through entity, you still have federal income tax filing obligations with the IRS. The specific requirements depend on your LLC’s structure and how it’s taxed.
The Federal Trade Commission (FTC) requires all advertising to be truthful and not misleading. This includes claims about your coffee’s origin, ingredients, or health benefits; ensure all marketing materials are accurate and substantiated.
The cost of federal permits varies significantly; some, like obtaining an EIN, are free, while others, such as Product Liability Insurance, can range from $500.00 to $2500.00. Federal Income and Self-Employment Tax Filing can vary greatly depending on your income.
Many federal permits, like the EIN and initial tax filings, are one-time requirements, but ongoing compliance with regulations like FTC advertising rules and annual tax filings are necessary. Some permits, like Product Liability Insurance, may require annual renewal.
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