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Home Business Licenses - Major or Minor?

Home businesses in Cedar City are divided into two categories, major and minor. To obtain a home business license, first determine if you will be operating a Major or Minor home business.

A minor home business must meet all of the following qualifications:

  • Business transactions conducted at the home are done only by phone and /or mail.
  • There are no customers or employees coming to the home.
  • Except for the owner's personal transportation (automobiles or one pick-up truck) there shall be no vehicles, equipment or merchandise stock on the property. Business equipment shall be limited to such items as a desk, drafting table, home computer, and other miscellaneous office equipment.
  • Only residents of the home may be involved in the area of the business which is conducted at home.
  • No accessory buildings may be involved with the business (ie: a storage shed).
  • No signs are allowed on the property.

If all of these conditions are met, your home business falls under the minor category.

If your business does not meet all of the conditions above, your business may qualify as a major home occupation and you should apply for a major home occupation permit.

A major home business must meet all of the following qualifications:

  • The home occupation is conducted entirely within a dwelling and is carried on only by members f the family residing in the dwelling.
  • The home occupation does not involve the use of any accessory building or yard space for storage.
  • No commercial vehicles are used except one delivery truck which does not exceed one ton rated capacity.
  • Signs shall be limited to one non-flashing sign not larger in area than 1 1/2 square feet.
  • Not more than 25 percent of the ground floor area is devoted to the home occupation.
  • Off street parking is adequate to accommodate all vehicles used by customers, clients and occupants of the home.

Nursery schools have additional requirements: Not more than 25 percent of the ground floor area of the dwelling is devoted to the home occupation; the maximum number of children allowed in the dwelling is calculated based on twenty-five percent (25%) of the ground floor. A maximum of sixteen children, including the occupant's own children are allowed at any one time. The portion of the dwelling used for the Nursery School contains floor space of at least twenty-five square feet per child and alternate door exits. A complete copy of these requirements may be obtained at the city office, 10 North Main.

To apply for a minor home occupation permit, follow these steps:

  • If you are not the owner of the home where you will be conducting business, obtain a letter from the owner authorizing you to do business on the property.
  • Obtain and fill out a business license application from the city offices at 10 North Main.
  • Return the application and fees (outlined below) to the city office. Your license will generally be approved while you wait.

To apply for a major home occupation permit, follow these steps:

  • Check the requirements below the checklist to ensure your business qualifies for a home occupation.
  • If you are not the owner of the home where you will be conducting business, obtain a letter from he owner authorizing you to do business on the property.
  • Fill out An Application To Appear Before The Board of Adjustment. Return the application with the $25 fee to the city offices. You will be notified where and when to appear before the board.
  • After approval by the Board of Adjustment, obtain and fill out a business license application and return to the city offices at 10 North Main.

General Business License

To obtain a general business license in Cedar City, follow these steps:

  • Register your business name with the Utah Department of Commerce ($20 filing fee). DBA forms can be printed off the State web site www.commerce.state.ut.us or call 801.530.4849 for information. Forms are also available at the city office.
  • If you will be selling any items, you must apply for a state sales tax number. Call 435.586.2532 for information or print the form off www.tax.ex.state.ut.us/CurrentPackX/tc-69.pdf
  • If you will be paying wages to one or more employees, you must apply for a federal tax number (form SS-4) with the IRS. 800.829.1040. If you are the only person working in the business, use your social security number as your federal ID number.
  • Obtain and fill out a business license application from the city offices at 10 North Main.  Business Licenses Application  
  • Return the application and fees to the city office. Your license will generally be approved while you wait

Beer and Liquor License

To obtain a beer or liquor business license, follow these steps:

You must obtain class "A" alcohol licenses from both the state and local governments -steps 1 & 2 if you want on-premise consumption (taverns, restaurants, etc.). Businesses selling alcohol for off-premise consumption (grocery, convenience stores, etc.) need only a class "B" local license -step 2 only.

  • Contact the Utah Division of Alcoholic Beverage Control. The state has requirements for issuing a beer or liquor license, and you will need both a state and local license in order to operate your business. The DABC usually meets on the last Friday of every month to discuss alcohol licenses. The deadline for being placed on the agenda is the 10th of each month. You must meet all of the state's requirements before that meeting or they will not consider your application. For information, call the DABC at 801.977.6800.
  • Fill out an application for a city beer license. Applications are available at the city office, 10 North Main. If you already have a business license and are trying to add the alcohol license to your existing business, you still need to fill out a beer license application. If you do not have an existing business, you will need to apply for a business license as well. Beer licenses are approved by the City Council, and a minimum two-week time frame is needed to complete this approval process. Beer licenses run from July 1st through June 30th. Alcohol regulatory fees are not prorated.

A setup license is needed for a place of business which allows customers to possess liquor of which the seal has been broken or to consume liquor on the premises. Call the city office at 435.586.2950 for more information.

License Fee

Business Licenses Application  

How much do city business licenses cost?

For a major or minor home occupation license:
If no other employees $43
Plus a $25 application fee for a Board of Adjustment Appearance (major home occupation permit only).  Plus $13 per additional employee (major or minor).

For a general business license:
Registration of business name (State Dept of Commerce) $20
City business license $30 plus an additional fee per employee
Per employee fee $13 per full time-employee*
* full-time employee or 2 or more part-time employees whose combined hours add up to 40 per week. The owner of the business must be included as a full time employee regardless of the number of hours worked. For more information, contact the city office at 435.586.2950.

 

Rental Dwelling License
License fee $40.00
Only 1 license is needed for an owner regardless of number of rental dwellings owned.

 

Temporary permits are available
Itinerant License - Per person:
1 Day permit $25.00
7 Day permit $50.00
14 Day permit $75.00
3 Month permit $150.00

A sales tax number and a $2000 surety bond must be obtained. A copy of the bond must be submitted with the business license application.

 

Solicitors and Peddlers:
First person:
1 Day permit $25.00
7 Day permit $50.00
14 Day permit $75.00
3 Month permit $150.00
Each additional person $23.00

A sales tax number and a $2000 surety bond must be obtained. A copy of the bond must be submitted with the business license application.

 

For a Beer and Liquor business license:
Class "A" beer license $150 annually
Class "B" beer license $250 annually
Setup license $50 annually
Dance Hall license $100 annually

In addition to a sales tax number and surety bond, there are other license requirements for solicitors and peddlers. Please contact the city offices at 435.586.2950 for further information.

Further Requirements

To do business in Cedar City, State and Federal Business Requirements must also be met:

Business Name Registration: All persons or partnerships doing business in Utah under an assumed business name must register with the State Department of Commerce. A $20.00 filing fee is charged. www.commerce.state.ut.us

State Business License: Under certain circumstances, a special state business license may be required for your business. Usually only professionals need a state license (i.e. CPAs, Doctors, Plumbers, Cosmetologists, Contractors, etc.)
Unemployment Insurance: Unemployment insurance, both state and federal, is generally required in firms with one or more employees. For information contact the Department of Employment Security. 435.865.6530.

Worker's Compensation Insurance: This insurance is required of all employers, and may be obtained from private insurance companies or the Utah State Insurance Fund. For information, contact the Utah State Industrial Commission. 801.530.6800. www.labor.state.ut.us

Minimum Wage Laws: Many businesses are subject to federal minimum wage, overtime and child labor law regulations. For information contact the U.S. Dept of Labor, Wage, Hour and Public Contracts Division. 801.524.5706.

Fair Labor Standards Act: The Utah Department of Labor requires all employers to comply with the Fair Labor Standards Act. For information contact the Employment Standards Administration. 801.524.5706.

Some special events and types of businesses require surety bonds or have other requirements. These include Ambulances, Amusement Devices, Auctioneers, Billboard Advertising, Bowling Alley, Carnivals, Circuses, Christmas Trees, Dance Halls, Fireworks Stands, Horse Drawn Carriages, Pawn Brokers, Produce Peddlers, Restaurants, Swap Meets and Second Hand Dealers.

Contact the City Recorder at 435.586.2950 for further information.

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