Start a Business in Orem, UT: When it comes to starting a business, entrepreneurs must look for the place with the most potential. Whether a corporation, sole proprietorship, partnership, or LLC, having a business in Orem, UT, is a plus for any entrepreneur. In general, setting up any form of business in Utah, US, is the initial step to building an international brand.
Entrepreneurs across the globe are interested in starting and expanding their businesses in Orem, UT. With an urban population of 97883 (estimate), the city has a lot to offer to all emerging entrepreneurs. The main reason for this is the economic environment and flexibility of the business structure in Utah. Like most places in the US, Orem, UT also offers business structures for all types of entrepreneurs; no matter what business you want to do, there’s a perfect solution for you. If you want to start limited liability company (LLC) or a corporation, or a sole proprietorship, Orem, UT has a proper business environment for all.
In this article, you will read about how to start a business in Orem and why you should choose Orem to start and run your business. We recommend you check below the important facts about Orem, UT; these might help you.
On this page, you’ll learn about the following:
Orem, UT Household Income Statistics
| Orem Median household income | 65622 USD |
| Orem households with dual income earners | 64.1 % |
| Orem households $150K+ Income | 12.5 % |
| Orem households $100K+ Income | 28.7 % |
| Orem households $100-150K Income | 16.2 % |
| Orem households $75-100K+ Income | 14.3 % |
| Orem households $50-75K+ Income | 21 % |
| Orem households $35-50K+ Income | 13.4 % |
| Orem households $25-35K+ Income | 8.4 % |
Orem, UT Education & Labor force Facts
| Orem residents with a bachelor’s degree (or equivalent) | 27.6 % |
| Orem residents with at least a 4-year degree | 40.8 % |
| Orem residents with a graduate degree | 13.2 % |
| Orem residents with a high school diploma but no more | 16.6 % |
| Orem residents with less than high school education | 6.1 % |
| Orem residents with some college but no more | 36.5 % |
| Orem residents with a Bachelor’s degree or higher (STEM fields) | 38.6 % |
| Orem households that own (rather than rent) their residence | 59.3 % |
| Orem residents 16 and older in the labor force | 70.2 % |
| Orem residents unemployed | 3.9 % |
Orem, UT Demographics
| Orem residents aged 0-9 | 16 % |
| Orem residents aged 10-19 | 16.6 % |
| Orem residents aged 20-29 | 24.2 % |
| Orem residents aged 30-39 | 12.4 % |
| Orem residents aged 40-49 | 8.9 % |
| Orem residents aged 50-59 | 8.1 % |
| Orem residents aged 60-69 | 6.7 % |
| Orem residents aged 70-79 | 4.3 % |
| Orem residents aged over 80 | 2.8 % |
| The average size of resident families in Orem, UT | 3.59 |
| Estimated population per square kilometer in Orem, UT | 2030 |
| Orem, UT urban population (estimate) | 97883 |
| Orem, UT municipal population (estimate) | 97883 |
Now that you know what makes Orem of Utah good for business, let’s get started with the exact steps on how to start a business in Orem.
How to Start a Business in Orem, UT
Starting a business in Orem, UT, needs planning, financial decisions, legal procedures, and a handful of other things. Be it a corporation, sole proprietorship, partnership, or LLC in Utah, you must go through the following steps. These steps are general steps. They are subject to change depending on the structure of your business.Generally, starting a Limited Liability Company is easy to form. Read our guide on how to start an LLC before you start your own business. Here are the steps to set up your business in Orem.
Step 0: Decide on What Business to Start
This is the first thing you work on, the type of business you want to start in Orem. Depending on that, you need to make your business plan. Apart from the legal documentation and process, you must include the following points in your business plan,
- Through market research on demand trend
- Complete Budget plan – funding your business. If you’re planning to start an LLC, then take a look at the cost of LLC
- What competitors are doing
- SWOT Analysis – check what your Strengths, Weaknesses, Opportunities, and Threats are
- Your targeted buyers
Once you have the entire plan with you, you can continue working on the legal structure of your business. LLCBuddy will guide you through the legal process of forming an LLC for your business. It’s very likely that you have already done this step 0, so that we won’t go deep into this step, let’s move to step 1.
Step 1: Choose Your Business Structure
The very first step after you decide on what type of business you want to start is to choose what type of business structure you want to form. You can form an LLC, a sole proprietorship, a corporation, or a partnership. Each type of structure has different rules and regulations. For example, if you want to start a Utah LLC, there are different types of tax and fee structures. An LLC formation is similar to forming a sole proprietorship. On the other hand, forming a corporation is much more complicated. The tax and fee structure is completely different in corporation formation.
Step 2: Name Your Business
The next step in forming a business is to give it an appropriate name. Having a business name is not so easy task. You cannot pick a random name for your company. One has to follow proper naming guidelines before they name their company. Besides, before you settle a name, you must check if the name you are looking for is available to use. You can visit the official government site of Utah to do the Utah LLC name search before you pick the available name. Below are some of the naming rules you need to follow,
- You cannot name your business that has words or phrases like Bank, University, Government, or anything that can confuse people with a government sector.
- If you are forming an LLC in Utah, then you must include words like “LLC,” “LC,” “LLC,” “Liability Company,” and “L.L.C.” If it is an LLP, then you must include “LLP” in your business name.
- The name should reflect the nature of your business. Any name that can confuse people should not be picked.
- You can check if the name of your company is available. Through the business name search process, you can search if the desired name is available for use or not.
- You can reserve your business name for a certain time before you form your business in Orem, UT by filing a name reservation application.
The above-mentioned points are basic naming rules that all businesses have to follow while naming their company. As mentioned above, these rules are subjected to change depending on the structure of the business.
Step 3: Get a Registered Agent
A Registered Agent is a person who receives all types of legal and official documents on behalf of the business. Whether a suit against your company or formation-related documents from the state, a Utah LLC Registered Agent is responsible for receiving these documents at his/her official address. In general, anyone who has the right to conduct business in Orem can be a registered agent. However, there are some requirements to becoming a registered agent.
- The person has to be 18+ years of age.
- Must be a citizen of the Utah
- Must have a physical street address in the Utah
- Must have legal rights to conduct business in the Utah
Anyone who fulfills the requirements can be a registered agent. Also, anyone from the company, your spouse, any relative, or yourself can be a registered agent. But, it is recommended that you hire a professional registered agent to look after your documentation. You can choose from the best LLC services that also offer registered agent for LLCs.
Step 4: Register Your Business
The next step is to register your business under the Secretary of State, Utah. The Articles of Organization (or certificate of incorporation) of your company should be submitted online, by mail, in person, or by fax to the Utah SOS. You need to pay the state filing fee either by Credit Card or by check to the SOS while registering your business in the Orem, UT. Your Utah LLC certificate of formation should have the following details about your business
- Company/Business name, address
- Registered Agent Name, address
- Member-managed or manager-managed (in case of LLC)
- Type of business
Depending on the type of business structure, you may have to add some more information to the formation document.
Step 5: Write the Operating Agreement
An operating agreement is a document that has all the structural information of your business. In most states, it is not mandatory to create an operating agreement. However, it is highly recommended to have one as an internal document. This document records information such as,
- About Business
- Members and management
- Capital contribution
- Profit Distribution
- Change of membership
- Dissolution
In future, if any member wants to leave the company or you want to dissolve the business, then the Utah operating agreement has everything recorded, from clauses to contributions.
Step 6: Obtain EIN
EIN or Employer Identification Number is required to file taxes, open a business bank account, and if your business has employees. EIN can be obtained from IRS. It is a 9-digit number similar to Social Security Number. However, EIN is different from SSN. It is solely used for business purposes, especially for general tax filing. You have to fill out the form and submit it to the IRS website. It does not cost you anything to obtain EIN.
Step 7: Get Business Bank Accounts
Once you obtain the EIN for your business, you are free to open a business account in the US. Having a US business bank account can ease your business transactions in Orem, UT. It increases your business credibility and liquidity. It will also be helpful for business loans.
Step 8: Create Your Business Website
Business websites are as important as your business structure. It is necessary to have a catchy business website with all the information regarding your company. Along with the website, you need some more things. Things such as logos, business cards, business emails, domain names, and social media accounts are needed to promote your business. You can hire a professional business service to get all of these services under one roof.
Other Things to do After Starting Your Business
- Once your company is set in the Orem, Utah, you need to file your taxes and apply for licenses (if needed).
- Apart from the license and permits, you need to get insurance for your business. Such as General Liability Insurance, Professional Liability Insurance, and Workers’ Compensation Insurance are some of the insurances you need to get if you are about to start an LLC.
Important Orem Stats for Starting a Business
Before you start a business in Orem, it is required that you know some facts about the city. Following are some of the stats to consider before starting a business.
Education & Employment
Orem has a diverse population that comes from various educational backgrounds. There are students who haven’t finished their high-school education, whereas there are people who are more than just college graduates. Check the table (Education & Labor Force) for detailed data. From the data, it is clear that the city has enough educated and skilled people who can contribute to the labor force.
Demography
As we talk about the urban population density, the young population percentage in the city is approximately 24.2 (people in their 20s) and 12.4 (people in their 30s). This means that having any business that is new and tech-based might be profitable. The median age of the population in the city is 26.5. On the contrary, if anyone wants to start a business that is related to any old-age service, such as caregiver, primary old-age support, or something of a similar sort, then Orem has approximately 2.8 (people in their 80s and above) percent of old people. Check out the table (Demography) above for more information.
Real Estate
Another important factor to mention about Orem is the home value of owned properties. The average value of owned houses is 297508. Also, the percentage of people living in their own houses is 59.3. This reflects the real estate market of the city. For a metropolitan city, this is a considerable number.
Health
It is inevitable that living in a big city is different from living in a town or a comparatively smaller city. It directly affects lifestyle and health. It is obvious that having health insurance is important, no matter which city or region you are residing in. But there are people in Orem who still do not have health insurance. The rate of people not having health insurance is 10.6. This depicts the lifestyle and overall health demography of Orem. As you plan to start your business in this city, you must consider this stat as well.
Income & Lifestyle
The income pattern of the people in this city is given in the table (Income) above. In Orem, a part of the population has a dual family income that reflects a better standard of living. As in, people have more than one source of income. The table above shows the income percentage of various slabs.
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Reasons to Start a Business in Orem
Orem offers a bunch of business-friendly services for entrepreneurs. A proper business environment, skilled labor, tax advances, deductions, and much more are awaiting if you are interested in starting your business in Orem. Here are some of the reasons,
Stable Economic Growth
Orem or any other city in Utah has stable economic growth and an environment that helps any business to grow successfully. The economic structure of Utah shows not only balanced but also a sustainable condition of economic growth, which in turn triggers the businesses to flourish in the state.
Minimize Personal Liabilities of the Entrepreneur
If you’re considering starting an LLC in Orem, then it will be your best choice. An LLC protects your personal assets and minimizes your personal liabilities. This is one of the many reasons why having an LLC in Orem is a wise choice. Also, if you are opting for an LLC, the tax deductions will be more than having a corporation.
Federal and State Tax Relaxation
There is a series of federal taxes that an entrepreneur has to pay when operating a business in the US. Depending on the state your company is located in, the state taxes are being imposed. For an LLC, both of these taxes are much lower compared to other business structures. Along with tax impositions, some tax deductions (state-wise) lower the filing fees and other government charges. Check out the Utah LLC tax structure to know more about the tax structures for LLCs in the state.
Government Incentives for Entrepreneurs
Federal and state governments in the US ensure that entrepreneurs get a proper business environment in the state or city they are operating their business. The government provides a few incentives to the business holders in Utah or any other state. That means if you are operating any business in Orem, then Utah State will provide an incentive for creating jobs, contributing to the state’s GDP, and/or balancing the state’s tax structure.
Low Corporate and Other Business Taxes
Corporations and other business structures (except for an LLC) are liable to pay a corporate tax in Utah. Also, there is a Sales Tax that all businesses, including LLCs, have to pay. However, the rate of taxes is very low. Besides, as the businesses receive incentives, the tax burden gets lower.
Skilled Labour & Quality Manpower
In Orem, it is easy to hire employees for your business. They are not only skilled but also well-educated to help your business grow. As mentioned above, the 70.2 is the percentage of labour participation. Hence, it is clear that having a business in Orem will make a lot of difference to the existing labor force.
Demand for New Market and Industry
In Orem, Utah, there is an uprising demand for new industries and new markets. Entrepreneurs who are willing to start a business in any of the cities of any state are given enough opportunities to stay in business. Business licensing, tax deductions, incentives, and relaxation of business taxes are some of the benefits that encourage start-ups and budding entrepreneurs to start their own businesses in Orem.
If we follow the US Data, the median value of commute time for the residents to their work is approximately 19.5. If you are starting a business here, you must keep in mind that commutation can be a point to consider.
Intellectual Property Protection
The US government receives roughly more than 1 million applications for IPR every year. The federal government makes sure that there is no infringement of any patent or property rights. It does not matter which city in which state you are running your business. The rule of Intellectual Property Protection is the same for all. If you have a foreign business in the US, then you might get more benefits under the IPR act.
Other Benefits
Orem (aka ) is ranked at 2 in terms of importance. Apart from the above mentioned reasons, there are some other benefits that businesses enjoy in Orem. For example, technological advancement, a stable political environment, renewable resources, sustainable non-renewable resources, and some more benefits make things easier for entrepreneurs to start and run their businesses. According to US Data, the percentage of young people in Orem is 12.4. Hence, it would be great to start a business that is related to tech here as you might get a good number of clients.
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How Fast Can You Start Business In Orem Utah
Whether you have just been thinking about starting a new business in Orem Utah or have already begun your entrepreneurial journey, it’s important to know the steps required to get started. Depending on the type of business you plan to launch, you will need to register your business with various agencies. Also, you may need to purchase certain business licenses. In addition to the required business licenses, you will need to make sure you have the correct insurance for your business.
Before registering your business, you will need to decide on the name you want for your company. The name you choose may change as your business develops. You will need to determine who your target audience will be. You will also need to create a business website that includes your company logo, a description of your products and services, and contact information. You will also need to create social media accounts to promote your business. You will need to find a professional business service provider to help you with all of these tasks.
You will also need to register your business with the Utah Division of Corporations and Commercial Code. You can register your business online or in person. The cost of registering your business will vary depending on the type of business you plan to launch. You will also need to create an EIN (employer identification number) for your business. A tax ID number is a nine-digit number that you will receive from the IRS. You will also need to obtain a business bank account. This will help you with business transactions and can make you more credible. You can also obtain government grants to help with startup costs.
If you are planning to launch an online business, you may want to register a domain name. A domain name will help promote your business online. You will also need a business email address to send and receive messages. You may also need a Point of Sale terminal if you plan to process credit cards. You may also want to consider purchasing a new computer to help you conduct transactions more efficiently.
It’s important to get a professional Certified Public Accountant to help you understand the different financial aspects of your business. This will help you avoid common mistakes that new business owners make. In addition, you will need to create a marketing plan.
When starting a new business in Orem, you will also need to register for a business license. You will need to check with your local city hall to see what licenses are required for your business. You may also need to obtain workers’ compensation insurance. You will need to have a business bank account and a domain name to conduct business in Utah. You can also get help from an Orem Small Business Development Center. The center has consultants that specialize in almost every business field. They will help you get started and help you develop your business as it grows. They will provide you with free business management classes.
FAQ About Orem, UT
Orem is a fantastic city. Orem, UT, offers several options for small enterprises. As a consultant, a free-lance writer, or a social media expert, you may launch a company. In Orem, you may also start a company as a baker, personal trainer, or dog walker.
You need a business license in Orem, UT, to start a company. Depending on the sort of company, several cities demand various forms of licenses. For further information, you may contact the Orem municipal authorities. A general business license is often required to start a business.
It is not difficult to register a company in Orem, UT. Before you can begin, there are a few things to take care of. If you file online, it takes a day to register your company in Orem, UT.
Every LLC in Orem, UT, must choose a registered agent. It may be a member of the LLC, a professional, or a family member. This individual is in charge of picking up all the paperwork for the LLC at their Orem office.
In Orem, UT, $1000 may be used to launch a variety of company concepts. You may launch a company that sells webpages. companies that do internet sales are another. Using an excellent name as your company name, you might launch a computer and technology-related firm.
Orem, UT, has a population of over one million people and is home to over a thousand small businesses. One of the most popular small businesses in Orem, UT is a food truck business. Also, there are home-based baking and small garage selling businesses.
The following are requirements if you wish to sell your goods in Orem, UT. Decide the item you wish to sell first. Know your intended audience, second. To improve sales in Orem, UT, market your goods.
Here are a few original company ideas for Orem, UT entrepreneurs. You may start by selling homemade home décor, DIY supplies, personal care items, and other items online. You might even start a dog walking or pet sitting company.
You can find a seller’s permit in Orem, UT at a very low cost. A permit allows you to sell items in the city of Orem legally. There are many other permits and licenses that you may need to acquire before you can legally sell items.
Businesses in Orem, UT, are eager to relocate. Some of the factors driving firms to Orem include the city’s robust economy, friendly business climate, and state tax system. Additionally, the city offers a lot of commercial opportunities.
Unfortunately, there is no way to know for sure whether or not Orem, UT requires small business insurance. This is because every city has its own set of laws and regulations. If you are unsure whether or not Orem requires small business insurance, you should contact your local government.
Your company is the only factor keeping you from relocating to Orem, UT. You shouldn’t relocate to Orem if you can’t discover the greatest atmosphere there for your firm. You shouldn’t relocate if Orem can’t help you find purchasers for your company.
If you are an entrepreneur in Orem, UT, you must register your business name to protect it from being stolen. Registering your business name with the Utah Secretary of State is a quick and easy process. You can register your business name for a minimum reservation fee.
LLCs are a type of business entity that is not taxed at the corporate level. Instead, the company’s profits are allocated to the owners in the form of dividends, and the owners pay taxes on the dividends. In Orem, UT, the owners of an LLC are subject to taxes on their individual income.
The business structure of a Limited Liability Company (LLC) in Orem, UT is comparable to that of a sole proprietorship. But it’s not only a solo proprietorship. A partnership and a sole proprietorship are combined to form an LLC. Pass-through taxation is used in it.
Yes, in Orem, UT, you may start a company with no capital. To register your firm with the Utah SOS, you must still pay a minimal filing cost. But you may deduct these filing costs from your taxes. Therefore, you may be able to launch your firm for nothing.
The price of forming an LLC in Orem, UT depends on a number of variables. The quantity of members, the nature of the company, and the yearly fees may all have a role. In Orem, UT, an LLC typically costs $70.
The majority of enterprises need your whole attention and effort. Whether it is Orem, UT or any other city in the state, if you have your own business, it won’t run itself. You could have more time for yourself if you start your company at a lower volume.
A vibrant and culturally diverse city, Orem, UT. Its economy is strong, its cost of living is cheap, and its population is growing rapidly. Numerous green businesses call the city home, and it is highly renowned for its green activities. A successful company may be launched in Orem.
Any small company in Orem, UT, has to have certain rules. The workers’ health and safety policy is one of the most popular ones. Other rules include those governing employee discipline, complaints, vacancies, and time off.
In Orem, UT, registering an LLC is a simple procedure. To create an LLC, you must first submit the necessary documentation to the Secretary of State. Then, you must make a trip to the County Clerk to submit documentation (if needed).
In Orem, UT, there are several tiny firms that generate excellent profits. Additionally, these companies don’t need a lot of capital to launch. These companies are those that sell products online, deal in tiny cars, handle real estate, and operate restaurants.
If you work for yourself in Orem, UT, you don’t always need to get a license. For information on home-based companies and self-employment laws, contact the Orem authorities. Depending on the business’s nature.
It depends on the kind of company you run in Orem, UT. If you own an LLC, you must pay income tax based on your personal income. In Orem, UT, LLC has no commercial revenue.
If you reside in Orem, UT and do not already have a Tax ID number, you may be curious about the cost of obtaining one. An person or corporation may be identified by their Tax ID number, which is a nine-digit number given out by the IRS. It’s free.
Online companies in Orem, UT are not only in demand but also inexpensive to start. The most affordable choices to establish a business in Orem, UT might be online teaching, selling, or legal consulting. Additionally, you might launch a home-based cake making company.
It is possible to launch a business that offers tours of Orem, UT that take in all of the city’s top restaurants. To become a city tour guide, you must first have a name, a logo, and the necessary licenses and paperwork.
If you want to run a business in Orem, UT, get a good business plan. Once you have it, you can choose a suitable business name, hire a registered agent, and file your business with UT Secretary of State. After filing, make sure to get a proper license and permits.
The cost of business insurance in Orem, UT varies depending on the type of business you have, the size of your company, and the nature of the business. A small business with less than 10 workers, for instance, can spend as low as $1,000 year for general insurance.
In Orem, UT, making money faster takes some time. If you want to set up your business in Orem, then it takes at least a few months to earn a good profit. Once your business gets settled down, you can make faster money from it in Orem, UT.
In Orem, UT, operating a company from home is legal. However, some cities demand local licenses to conduct home-based businesses. For that, you should verify with the local government. You can operate your company from home if you’re authorized to.
In Orem, UT, there are a few factors to think about while deciding where to reside. If you would find buyers there, how much it would cost to live there, and if Orem is a decent place for your family to live are other factors to consider. Prior to moving to Orem, make a decision on these.
In Orem, UT, there are several options to get money for your company concept. You may utilize a crowdfunding website to gather money, go to a bank and request for a loan, or receive a grant from the government. You may look at the various funding options.
The first step to earning money in Orem, UT with an LLC is to register your business. It is possible to register your business in person, via mail, or online. You may start selling your goods and services to earn money after your LLC has been registered.
You must get a business license if you want to open a business in Orem, UT. The price to license a company in Orem, UT varies according on the kind of business you’re beginning and how big it is.
In Conclusion
Starting a business in Orem is not only easy but also profitable. A large portion of the US and even people from other countries are registering their business in the US for intercontinental brand building. Besides, Utah has a sustainable economic atmosphere that is enough to encourage newbies to start and run their businesses in Orem, UT.