Utah Economy Overview

Currency

US Dollar (USD)

Working hours

40 hours/week

Public/bank holidays

10 public holidays

Capital

Salt Lake City

Languages

English

Population

Approx. 3.4 million

Minimum hourly salary

$7.25 (USD)

Tax year

1st Jan – 31st Dec

Date format

MM/DD/YYYY

Misclassification penalties

Employers in Utah who misclassify employees as independent contractors may face fines, liability for back wages and taxes, and penalties for failing to comply with unemployment insurance and workers’ compensation obligations.

Fun fact

Utah is home to the “Mighty 5” national parks—Zion, Bryce Canyon, Arches, Canyonlands, and Capitol Reef—drawing millions of visitors every year and boosting the state’s outdoor recreation economy.

Iconic national parks, an attractive business environment, and a strong economy make Utah one of the top choices for international business expansion. Over the last 17 years, the state has been consistently ranked as having a positive economic outlook by the American Legislative Exchange Council’s Rich State Poor State Report. 

Utah is home to breathtaking landscapes, including the Great Salt Lake and ski resorts that attract millions of tourists annually. In 2022, visitor expenditures reached a phenomenal $11.98 billion, with $1.37 billion in direct and state tax revenue, significantly contributing to GDP. 

Other favorable features that make Utah a smart choice for investment are its diverse economy backed by manufacturing, tourism, and technology, and its fairly low unemployment rates. 

The Utah workforce is skilled and well-educated, with most new and young job seekers possessing a secondary educational qualification. 

To do business in Utah, every employer must follow the Utah Employment Law, which covers state and federal regulations. Whether hiring a workforce or incorporating an entity, this guide offers a breakdown of employment laws, reasons to establish your business in Utah, and why you should partner with an Employer of Record (EOR) or a professional recruiter to place the state’s best talent.

Overview of Utah's Economy

Between 2012 and 2022, Utah’s cumulative GDP growth was 91.62%. In 2024, Utah’s nominal GDP reached $300 billion, and according to recent data, the state has the lowest national poverty rate, reaching 6.8% between 2021 and 2023.

Sector Contribution to Utah’s Economy
GDP Growth Between 2012 and 2022, Utah’s cumulative GDP growth was 91.62%. In 2024, the state’s nominal GDP reached $300 billion, and it boasts the lowest poverty rate in the nation at 6.8% (2021–2023).
Petroleum & Mining Sector The energy and mining sector contributes 10% of Utah’s GDP. The petroleum industry alone has delivered over $2 billion in tax revenue in the past five years. Utah is also the 14th largest coal producer in the U.S.
Finance & Manufacturing Utah’s diversified economy benefits from growing finance and manufacturing industries, creating a resilient foundation for ongoing economic expansion.
Tourism Industry Tourism remains a major economic driver, with Utah’s national parks and natural attractions drawing millions of visitors annually and boosting local economies.
Renewable Energy & Agriculture Emerging sectors like renewable energy, agriculture, healthcare, and construction continue to contribute steadily to Utah’s growth and sustainability efforts.

Utah has a strong economy supported by the mining, tourism, finance, manufacturing, and petroleum sectors. The petroleum industry is a major economic driver in Utah and has contributed more than $2 billion worth of tax revenue over the last five years. The energy and mining sector accounts for 10% of Utah’s GDP, and currently, Utah is ranked as the 14th largest coal producer nationally. 

Other major sectors that continue to grow and add value to the state’s economy include renewable energy, agriculture, healthcare, and construction.

Taxes

Employer Tax: 7.65% – 15%

Social Security (FICA)

6.2% 

Medical Insurance (FICA)

1.45% 

Federal Unemployment Tax (FUTA)

6.00% (first $7,000)

State Unemployment Insurance (SUI)

~0.1% – 9.9%

Employee Tax: 7.65%

Social Security (FICA)

6.2% 

Medical Insurance (FICA)

1.45% 

Income Tax

4.55% flat rate on all taxable income (as of 2024)

Business Regulation in Utah

When you’re ready to expand your international business in Utah, you must follow the local labor laws and business regulations. This includes registering for tax with the IRS and adhering to laws that guide and protect employee rights when hiring a workforce. Several regulations are discussed in more detail below:

Business Registration Procedures

Business registration in Utah starts with creating a Utah ID with the Division of Corporations and Commercial Code online. The process includes selecting the appropriate entity type, such as an LLC or corporation. If you are to register a corporation in Utah, you must include a purpose statement.

Statute documents must be prepared, and an Employer Identification Number (EIN) obtained from the IRS. You must pay the filing fees based on the type of business entity; for example, the filing fee for an LLC is $59, whereas a Limited Partnership is $70.

Tax Policies

In Utah, all businesses must pay corporate income tax, state and local sales tax, and property tax if they own real estate. Utah is known for its flat corporate income tax rate of 4.55%, providing a simple system for businesses to follow. The state sales tax rate is 6.10%, and the local tax is approximately 1.15%.

Investment Incentives

Utah provides tax credits and grants for qualifying businesses. One such incentive is the Economic Development Tax Increment Financing (EDTIF). This program provides tax credits for state revenue resulting from local expansion or investments of 30%. 

Utah offers Enterprise Zone Tax Credits, which means that companies expanding in specific regions of Utah are eligible for tax deductions. The New Markets Tax Credit (NMTC) aims to increase business capital by offering tax credits to private investors. 

Additional incentives include: 

  • Alternative Energy Development Incentive (AEDI)
  • Research Tax Credits 
  • Technology Tax Credits 
  • Rural Economic Development Tax Increment Financing Credit

What Are the Benefits of Doing Business in Utah?

Utah’s economic growth and diversity, along with its flat corporate tax system and business incentives, make it the ideal destination for expansion. Consider the following benefits of doing business in Utah:

  • Strong energy sector: Utah has a diverse economy, but its strength lies in the energy sector. The state’s focus is on clean energy, and the government is currently investing in wind and solar energy. Despite reliance on coal to generate power, Utah is investing in geothermal, wind, and solar energy sources to provide alternative production of electricity. 
  • Government reforms: Current government reforms in Utah focus on easing stringent business regulations to make company incorporation and expansion simpler and more cost-effective. This includes the introduction of incentivized programs to encourage investment, such as the state’s tax credits. 
  • Low taxes: Businesses in Utah can benefit from relatively low taxes with a flat corporate tax rate of 4.55%. Lower taxes allow companies to dedicate resources to growth and sustainability. 

What Are the Downsides of Doing Business in Utah?

While Utah is business-friendly and has a positive financial future, it is important to look at potential challenges and how to overcome these for successful expansion:

  • Rising operational costs: Businesses in Utah will face rising operational expenses as the local cost of living increases. Managing these costs means taking advantage of tax credits and incentives offered by the government. 
  • Property limitations: Utah is experiencing a housing shortage, including a lack of affordable housing for residents. Rising costs combined with limited options in the housing market can prove challenging for new businesses and entrepreneurs.

International Expansion into Utah

There’s no doubt that Utah is one of the prominent states in the U.S. for doing business. To help you make valuable decisions for international expansion, it’s important to understand your options as follows:

Utah Employer of Record (EOR)

EOR services focus on keeping client companies compliant with local labor laws while assisting with workforce liability. The EOR helps with employee benefits, drafting employment contracts, and onboarding employees. You do not need a legal entity to hire an EOR in Utah, and the service provider acts as a legal employer of your labor force.

Recruitment Agency

When you hire a workforce in Utah, you’ll have to post job advertisements and screen possible candidates, which is costly and time-consuming. A professional recruitment agency in Utah can handle the hiring process by connecting clients to vetted candidates who fit the requirements of the position. They will screen and place potential employees on your behalf.

Utah Professional Employer Organization (PEO)

A Professional Employer Organization (PEO) is a co-employer assisting with HR tasks, payroll, and the handling of employee benefits. A Utah PEO can hire new employees, and they advise on measures of compliance. To hire a PEO in Utah, you must have a registered business in the state.

Subsidiary Incorporation

To incorporate a subsidiary, these steps must be followed: 

  • All business registrations are completed on the Utah Official Website.
  • Once you’ve selected an entity type, you’ll need to appoint a trusted individual as a registered agent. You can assign yourself as the entity’s registered agent when submitting your filing. 
  • Provide details concerning the managers and directors of the entity. 
  • Submit documents such as Articles of Incorporation or Articles of Organization, depending on the business structure. 
  • Pay the requested filing fees.

Branch Registration

Branch registration must be completed with the Utah Division of Corporations and Commercial Code. It is a flexible option for international companies looking to enter the corporate realm in Utah. While businesses don’t require a general state license, they must obtain licenses based on their locations in the state.

Staffing Agency

Staffing agencies work with client companies to find possible employees for contract, temporary, and permanent positions. The agency can screen job candidates and place them.

Business Opportunities in Utah

Utah’s economy is one of the most dynamic in the U.S., consistently ranked for its growth, low unemployment, and business-friendly environment. Known for its strong performance in industries like mining, manufacturing, and finance, the state offers fertile ground for businesses that align with its economic backbone.

Business Opportunity Reason
Mining Support Services Utah is rich in natural resources like copper, gold, and coal; businesses that offer equipment, logistics, or safety services can tap into steady demand.
Advanced Manufacturing With a skilled workforce and strong infrastructure, Utah is a hub for manufacturing sectors like aerospace, electronics, and medical devices.
Financial and Leasing Services Utah has a booming finance industry, especially in Salt Lake City, offering room for niche services like fintech startups, leasing firms, or investment consultancies.
Construction & Industrial Services Rapid population and commercial growth are driving demand for contractors, materials suppliers, and industrial service providers.
Logistics & Distribution Centers Utah’s central location and strong transport links make it ideal for warehouse operations, fulfillment centers, and logistics startups.

Utah’s economic resilience comes from its ability to balance resource-based industries with modern sectors like tech and finance. For entrepreneurs, aligning a business with these core strengths isn’t just smart—it’s strategic. Whether you’re entering support services for mining or launching a high-tech manufacturing operation, Utah offers a solid foundation for long-term growth.

When it is time to expand your business in Utah, adhering to the local business laws and labor regulations is of the utmost importance. Hiring a professional recruitment agency can help you find top talent more efficiently while maintaining the highest standards of compliance.

Expand into Utah with RemotePeople

To seamlessly enter the Utah market and facilitate workforce expansion, speak to the experts at RemotePeople. The international recruitment agency assists clients with global hiring solutions, connecting you to a network of job candidates and making hiring simpler and faster.

To learn more about expansion into Utah, get in touch with RemotePeople’s local business expansion experts.