“AI is going to reshape every industry and every job,” said Reid Hoffman, Co-founder of LinkedIn.¹ In many ways, it already has. Whether we’re streaming personalized music recommendations² or simply typing questions into Google³, Most of us have already woven artificial intelligence into the fabric of our daily lives.

The business world has thrown itself into the age of AI, with many companies now using technology on a routine basis. As a result, entrepreneurs across the country have begun to rely on AI to draft legal agreements. ⁴ Small-business owners are inclined to use ChatGPT or similar programs to avoid the time and expense associated with hiring a lawyer to draft a contract. While AI can certainly make businesses operate more efficiently, it is by no means “a magic solution.”⁵

This article explores the pitfalls of using AI to draft legal agreements and explains why lawyers remain essential to protecting businesses’ interests.

Can AI Draft a Legally Enforceable Contract?

Under Utah law, a contract typically requires just three elements to be binding and enforceable:

1. An offer;
2. An acceptance; and
3. Consideration.⁶

“Whether drafted by a human or generated by AI, a contract must include these components to be recognized and upheld by the law.”⁷ A contract drafted by AI can meet these requirements and still be legally valid. The issue is not enforceability; it is quality, completeness, and legal precision.

AI-generated contracts often fail to fully protect business interests due to missing terms, vague language, or jurisdictional oversights.

Common Risks of AI-Generated Contracts

Ambiguous or Incomplete Contract Terms

So, could a business draft a contract using AI? Certainly. Such a contract could even be legally enforceable. The problem, however, lies with what AI-generated contracts may include—or, just as importantly, what they may overlook.

In one real-world scenario, a business owner made the mistake of getting involved with the wrong people. Specifically, his manufacturer had begun using confidential information without providing him any form of compensation. Upon further review, it became clear that the manufacturer’s conduct likely violated a non-disclosure agreement (NDA) executed by the parties at the outset of their business relationship. But, as you may have guessed, the issue was complicated by one key fact: the NDA had been generated by AI.

Having been prepared without the oversight of a legal professional, the NDA contained numerous issues. Chief among these issues was the fact that many of its terms were ambiguous. Fortunately for the business owner, however, it was the manufacturer who had used AI to generate the NDA. In Utah (as in most jurisdictions) contractual ambiguities are resolved in favor of the non-drafting party—i.e., the person who didn’t write (or, in this case, used AI to generate) the document.⁸ The business owner was lucky—he hadn’t prepared the problematic agreement he was now seeking to enforce and, as such, wasn’t forced to bear the brunt of the NDA’s many flaws. The same cannot be said for the manufacturer.

Missing Critical Legal Clauses

AI-generated contracts can omit essential provisions entirely. For Example, business owner Petr used AI to create a contract, one that “looked fine” on its surface. But when a dispute arose with the other party, and Petr took him to court, the contract was ultimately found invalid “due to a missing signing clause.” Simply put: “Petr paid the damages – AI bore no responsibility.”⁹

These types of omissions are not uncommon and can render an otherwise functional agreement ineffective.

AI “Hallucinations” in Legal Content

Another common problem associated with using artificial intelligence in place of an attorney involves “hallucinations”—that is, citations to non-existent legal authority.

A Thomson Reuters Westlaw study identified at least “22 different cases in which courts or opposing parties found non-existent cases within filings, leading to discipline motions or sanctions in many instances.”¹⁰ While hallucinations are most frequently discussed in the context of litigation, the problem has begun to seep into contract-drafting as well.

In the article AI Can Draft Contracts—But Can You Trust Them?, Rachelle Soderstrom and Rochelle Mulondo discuss an AI-generated commercial contract that included the following:

“Any dispute, controversy, or claim arising out of or relating to this Agreement, or the breach, termination, or invalidity thereof, shall be finally settled by arbitration in São Paulo, Brazil, in accordance with the rules of the American Chamber of Commerce, Canadian Chamber of Commerce, or other mutually agreed renowned Chamber of Arbitrations.”¹¹

On the surface, this passage might seem believable. However, as Soderstrom and Mulondo point out, “there are no such rules of the ‘American Chamber of Commerce’ or the ‘Canadian Chamber of Commerce.’”¹² This is a classic hallucination—one of the many problems people risk encountering when they use AI in place of an attorney.

When AI Can Be Useful in Contract Drafting

Despite the pitfalls identified above, artificial intelligence—when used properly—can help businesses and business owners alike. The most important thing to remember is that AI is a tool. Like other digital tools, it “require[s] oversight and confirmation and should not be used to replace professional judgment.”¹³

When used as a tool, AI can help small-business owners reduce the costs associated with routine legal work. Morvareed Salehpour, “an attorney specializing in technology and commercial contracts with over fifteen years of experience representing startups and established businesses,” encourages small-business owners to pair AI’s efficiency with human expertise.¹⁴ She recommends that business owners use AI to generate an initial draft and then hire an attorney to ensure the contract is complete, coherent, and legally sound. “For many businesses, this hybrid approach offers the best of both worlds: faster contract creation, lower costs, and peace of mind that the legal essentials are covered.”¹⁵

The Best Approach: Combining AI Efficiency with Legal Expertise

Business owners need to exercise caution when it comes to their contracts. Though few expect it to happen to them, problems can—and frequently do—arise long after the parties have signed the dotted line. When this happens, your ability to protect your business’s interests will largely depend on how well the contract was prepared.

As the foregoing discussion makes clear, business owners would be wise not to rely solely on artificial intelligence when preparing their agreements. After all, AI is “not designed to provide legal advice.”¹⁶ Yet, as Morvareed Salehpour notes, business owners who pair AI with an experienced attorney can avail themselves of the best of both worlds.

To learn more about how experienced attorneys can assist in your particular situation, please request a consultation with Christensen & Jensen.

Facing a DUI charge as a juvenile in Utah can feel overwhelming. The process differs significantly from that of adult cases, and understanding what lies ahead is crucial for families. The following guide explains the law, the process, potential consequences, and practical steps to help navigate this challenging situation.

Utah’s “Not-a-Drop” Law: What It Means for Drivers Under 21

Although a ‘minor’ is typically defined as anyone under 18, Utah enforces a strict zero-tolerance policy for drivers under 21. Known as the ‘Not-a-Drop’ law, it means any detectable amount of alcohol can lead to a DUI charge. Unlike adults, who face a 0.05% BAC limit, minors can be charged even after a single sip.

This policy reflects Utah’s commitment to preventing underage drinking and driving. For juveniles, the threshold is clear: any measurable alcohol equals a violation. Even trace amounts detected during a traffic stop can trigger serious consequences.

What Counts as “Actual Physical Control” in a Juvenile DUI?

The law applies whether the juvenile is driving their own car or operating anyone else’s motor vehicle. But it may also apply where the vehicle is not even in motion. For example, it also covers situations where the minor isn’t driving but is in ‘actual physical control’ of the vehicle. For example, the juvenile may be charged even if they’re in a parked car if the keys are accessible.

Determining whether a juvenile had ‘actual physical control’ isn’t simple. It involves both facts and law, and an attorney can guide you through it.

What Happens After a Juvenile DUI Arrest in Utah?

Understanding the juvenile court process can reduce stress and help families prepare. Here’s what typically happens after a juvenile DUI arrest:

1. Arrest and Booking

The process begins when law enforcement suspects impairment. The juvenile may undergo field sobriety tests and a breathalyzer. If alcohol is detected, the minor is taken into custody and booked. Parents are notified immediately.

2. Detention or Release

Depending on circumstances, the juvenile may be held in a detention center or released to a parent or guardian. Factors include BAC level, prior offenses, and whether an accident occurred.

3. Initial Hearing

The first court appearance usually occurs within a few days. The judge explains the charges and rights. Legal representation is strongly recommended at this stage.

4. Adjudication Hearing

This is similar to a trial but less formal. The judge reviews evidence and decides whether the juvenile committed the offense. If adjudicated delinquent, the case moves to disposition.

5. Disposition

The judge imposes sanctions such as fines, probation, treatment, and license suspension. The goal is rehabilitation, not punishment, but consequences can still be significant.

Penalties for a First-Time Juvenile DUI in Utah

Separate from court proceedings, the Utah Driver License Division may suspend driving privileges. This often happens quickly, sometimes before the first hearing. Administrative penalties include license suspension and ignition interlock requirements.

Juveniles have the right to request an administrative hearing to contest the suspension. Deadlines are short, so prompt action is critical.

Penalties vary based on age, BAC level, and prior history. Here are common outcomes for first-time juvenile DUI cases:

License Suspension & Ignition Interlock

Drivers under 18 may face a license and/or driving permit suspension that could last anywhere from 6 months until they turn 21. Those aged 19–20 typically see a six-month suspension. Higher BAC levels can lead to longer suspensions and ignition interlock device requirements.

Fines, Fees & Probation

Expect fines starting around $700, along with probation terms. Probation may involve regular check-ins, community service, and compliance with court orders. Non-compliance can result in stricter penalties.

Substance Screening & Treatment

Utah courts require substance abuse screening after a DUI. Based on results, juveniles may need counseling, education, or formal treatment programs.

Community Service & Additional Sanctions

Community service is common in juvenile DUI cases. Courts may also impose restorative justice activities to encourage accountability and learning.

Can a Juvenile DUI Lead to Detention?

Detention is rare for first-time offenders but can occur in severe cases involving injury, high BAC, or felony charges.

Long-Term Consequences of a Juvenile DUI Conviction

A juvenile DUI can have lasting effects beyond court sanctions. Insurance premiums often increase dramatically, and some carriers may refuse coverage. College applications, scholarships, and employment opportunities can also be affected.

While juvenile records are generally sealed, certain circumstances may allow access by law enforcement or courts later. Understanding these implications is critical for planning a successful future.

Steps Parents Should Take After a Juvenile DUI Arrest

Stay calm and informed. Begin by reviewing the citation and understanding the charges. Attend all hearings and comply with court orders promptly. Encourage open communication with your child about the seriousness of the situation.

Consider enrolling your child in voluntary education or counseling programs before the court mandates them. Demonstrating proactive steps can positively influence the judge’s decision.

Why Hiring a Juvenile DUI Attorney Matters

Navigating juvenile DUI laws in Utah is complex. An experienced attorney can clarify rights, negotiate favorable outcomes, and guide families through court proceedings, treatment, the license reinstatement processes, and expungement.

Attorneys can also help with administrative hearings and ensuring compliance with all requirements following disposition. Their expertise reduces stress and helps families focus on recovery and growth.

Protecting Your Child’s Future After a DUI Charge

A juvenile DUI in Utah is serious but not insurmountable. With the right information and support, families can focus on rehabilitation and moving forward. Understanding the process—and seeking guidance when needed—helps ensure the best possible outcome.

If your child is facing a DUI charge, consider reaching out to a qualified attorney at Christensen & Jensen to explore every option and p schedule a confidential consultation.

There are few things quite as jarring as being involved in a car accident. And unfortunately, the crash itself is often just the beginning. Once the initial shock wears off, many Utah drivers are left to face a series of daunting questions:

• What should I do?
• Who should I talk to?
• What should I say?
• What shouldn’t I say?

If you’ve been in an accident and find yourself faced with these questions, take a deep breath. We’re here to help. This guide walks you through the exact steps to take after a crash, explains your legal obligations under Utah law, and outlines when it makes sense to contact a personal injury attorney.

Step 1: Prioritize Safety at the Accident Scene.

After an accident, the first thing you need to worry about is the safety of yourself and others. If you can do so safely, you should always try to get your vehicle out of traffic as soon as possible. The goal here is to eliminate the possibility of being involved in a second collision, which happens more often than you’d think.[1]

Utah Law on Moving Your Vehicle

• No Injuries: Utah law allows you to move your car to any “suitable location that does not obstruct traffic.” Utah Code Ann. § 41-6a-401(2)(a)(1)(A).
• Injuries involved: You must “immediately stop the vehicle at the scene of the accident or as close to it as possible without obstructing traffic more than is necessary.” Utah Code Ann. § 41-6a-401.3(2)(a)(1).

In either event, your next step should be to call 911—even if the crash seems relatively minor.[2]

Step 2: Exchanging and Gathering Information: Do’s and Don’ts

Once all parties have lawfully moved to a safe area and called 911, the next step is to exchange and gather information related to the accident.

Information You Should Obtain

• Full names
• Addresses
• Telephone numbers
• Driver’s license numbers of all persons involved in the accident.[3]
• Insurance company names and policy numbers

What Not to Say After a Crash

When speaking with these individuals, it’s critical you refrain from saying anything that could be interpreted as an admission of fault. You should also avoid commenting on your physical condition. Even a simple apology or an “I’m fine” could come back to bite you, so it’s best to keep conversations brief, polite, and neutral.

Step 3: Document the Accident Thoroughly

You should collect and record any information you can regarding the accident. If there are other drivers or pedestrians who witnessed the accident, kindly ask for their contact information. These individuals could wind up being critical witnesses, and the sooner you’re able to obtain their information, the better.

You should also record:

• The time of the accident;
• The date of the accident;
• The location of the accident;
• Road conditions;
• Make and year of the vehicles involved;
• Insurance information;
• Apparent damages and injuries; and
• Your version of what happened.[4]

Use Your Smartphone

Photos and videos can be powerful evidence. Take pictures and videos of the scene of the accident as well as the vehicles that were involved.

Step 4: Notify Your Insurance Company

Contacting Your Insurance Provider

Once you’ve gathered and exchanged the necessary information, your next step is to contact your insurance provider to file a claim.

The adjuster assigned to your claim will likely ask you a series of questions related to the accident—who, what, when, where, etc. The adjuster may then ask you to provide additional information. Make sure to cooperate with your adjuster fully, as this should allow them to more efficiently process your claim.

Be Cautious with the Other Drivers Insurance Company

If another driver’s insurance company contacts you and asks to speak about the accident, tread lightly. This is another situation where your words could come back to bite you. Their goal is often to minimize what they pay, not to protect your interests.

However, if you were really the “at-fault” driver, your insurance company should be able to connect you with a lawyer to navigate these kinds of conversations. This is another reason why it’s important to let your insurer know about the accident as soon as possible.

Step 5: Stay on Top of Your Medical Treatment

If you sustained injuries because of the crash, you should immediately seek medical attention. Keep in mind that some of your injuries might not be apparent right away, so it’s important to continuously monitor your symptoms during the days that follow.

Keep Detailed Records

It’s critical you maintain documentation of:

• Facilities where you receive treatment
• Names of the providers who treat you
• Dates and the kinds of treatment they provide
• Missed work and lost wages

Should you ultimately decide to file a lawsuit, your attorney will have to collect this information one way or another. Whatever you can do to make this process easier should allow them to focus their energy on what really matters—securing a favorable outcome.

Step 6: Seek Legal Representation

If you sustained injuries as a result of the accident, you should consider hiring an attorney to assist you with the process of filing a claim. Here are a few things to keep in mind when considering the prospect of litigation.

Utah Statute of Limitations

Timing matters, and a claim’s statute of limitations establishes your deadline for filing suit. Critically, these deadlines can vary based on the kind of claim you wish to bring against the other driver(s). Personal injury claims in Utah can be filed at any point within four years after the date of the accident. Utah Code Ann. § 78B-2-307(3).

However, if you find yourself in the unfortunate position of suing based on a loved one’s death, the statute of limitations is considerably shorter. These kinds of claims—fittingly referred to as “wrongful death” claims—must be filed within two years after the date of the accident. Utah Code Ann. § 78B-2-307(2).

Missing these deadlines can permanently bar your claim.

Preparing for the Worst: Protecting Yourself Against Future Accidents

George Washington once said, “If we are wise, let us prepare for the worst.”[5] The unfortunate reality is that car crashes happen all the time in Utah.[6] And while nobody likes to think about what could happen if they were to be involved in an accident, everyone should do what they can to prepare for that possibility.

One of the best ways you can protect yourself against future accidents is by obtaining underinsured motorist coverage that makes sense for you and your family. If you were to be injured in a car crash caused by someone with little to no insurance, your ability to pay for treatment could come down to your underinsured motorist policy. Be sure to contact your current insurance provider to ask about how you’d be covered in this scenario.

Christensen & Jensen: We’re Here to Help

Choosing a lawyer is a personal decision. Your case deserves attention, experience, and care. Your case should be equally important to your attorney as it is to you and your family. You should strive to retain a firm whose experience and mission you can respect and trust. At Christensen & Jensen, we help Utah accident victims understand their options and pursue fair outcomes. We encourage you to schedule a consultation to see whether our firm is the right fit for you and your family.

If you’ve been injured in a car accident in Utah, we’re here to help.

As the new year begins, moments of reflection have a way of catching us off guard, even in unexpected places. When HBO’s new show The Pitt premiered, I tuned in partly out of loyalty to my alma mater, the University of Pittsburgh, and partly for the nostalgia for a city I grew to love. Although the familiar skyline caught my attention, what stood out was a storyline rooted in a very real dilemma about end-of-life medical decisions.

In the episode, a patient with Alzheimer’s disease arrives at the ER in respiratory distress. His advance directive rejects mechanical ventilation, yet his adult children, who both hold durable power of attorney, disagree. His son wants to follow the directive, but his daughter urges intubation. The physician notes that intubation would cause suffering and undermine the patient’s autonomy, but could ease the family’s emotional burden. Ultimately, the children override their father’s wishes. The episode offers no clear resolution. Instead, it leaves viewers with a question that is especially worth considering at the start of a new year:

Can a surrogate decision-maker’s authority outweigh the patient’s clearly stated preferences?

As with most ethical dilemmas, the “right” choice is rarely clear, but such conflicts can often be avoided through advance planning, specifically by understanding the difference between a living will and a health care directive. In Utah, the Uniform Health Care Decisions Act merges a living will and medical power of attorney into one standardized document. This was designed to reduce ambiguity and minimize disputes between a patient’s instructions and a surrogate’s authority.

Why These Conversations Matter

In real ERs in Utah, families are often forced to make irreversible decisions under crushing time pressure and emotional strain. And while medical care is deeply personal, it’s often unspoken until crisis strikes. Questions such as:

• Would I want to be on life support with no chance of recovery?
• If in a permanent vegetative state, would I want to be resuscitated?
• Who would I trust to make those decisions if I couldn’t?
• Would that person know my beliefs, values, and medical preferences?

These aren’t easy conversations, but from both a legal and a practical standpoint, they’re essential. In Utah, part of that conversation involves understanding the difference between a living will, an advance directive, and a health care directive.

What is a Living Will in Utah?

Despite its name, a living will has nothing to do with your property, your bank account, or who inherits your record collection. A living will is a written statement outlining your wishes for medical treatment if you are unable to communicate and your condition is terminal or irreversible.

This is where you specify whether you’d want life-sustaining treatments such as:

• CPR
• Ventilators
• Feeding tubes
• Pain management approaches
• Organ donation preferences

You can think of it as your “treatment preferences” document with clear instructions for specific scenarios.

However, a living will, standing alone, doesn’t appoint anyone to speak for you. If a situation arises that isn’t clearly covered in your written instructions, there’s no designated voice to clarify. That’s why, in Utah, it’s rarely used by itself anymore and rolled into a broader Utah health care directive.

 What is an Advance Directive?

An advance directive is an umbrella term for legal documents that:

• State your health care preferences
• Often appoint someone to make decisions for you.

A living will is one part of an advance directive, but other pieces might include:

• A medical power of attorney
• Mental health care advance directive.

The idea is to combine your written wishes with a trusted person’s authority to act on them, filling the gaps where the paperwork alone might fall short.

The Utah Uniform Health Care Decisions Act Explained

In Utah, the law has merged the living will and the medical power of attorney into one standardized document: the Utah Uniform Health Care Decisions Act.

This single form covers two critical areas:

• Treatment Preferences: Just like a living will, you can spell out the kinds of care you want or don’t want, particularly in end-of-life scenarios.
• Health Care Agent: You can legally appoint someone you trust (often a spouse, adult child, or close friend) to make medical decisions for you if you cannot.

The advantage is clear: your wishes are documented, and you’ve chosen the person to carry them out. If you only have a living will, you risk leaving unanswered questions. If you only have a power of attorney, you risk burdening your decision-maker with no guidance. Together, the directive gives clarity and authority.

Living Will vs. Health Care Directive in Utah: Key Differences

Why Every Utah Adult Should Have a Health Care Directive

Too many people treat these documents like bureaucratic paperwork when they’re legal shields for your autonomy and emotional lifelines for your loved ones. Without a directive, your care could be decided by:

• The court
• Default state laws

Even with the best intentions, family members often disagree, especially in stressful emergencies.

In that Pitt episode, the son knew his father’s choice. But in the heat of the moment, he deferred to his sister. That’s how documented wishes get overridden. Utah’s unified directive is designed to minimize those moments of doubt and prevent painful second-guessing.

What’s in Utah’s Standard Form

The Utah Uniform Health Care Decisions Act includes:

• Your medical treatment preferences, including end-of-life care
• The option to appoint a health care surrogate or agent
• Space to express personal values, religious beliefs, or other instructions
• Signature and witnessing requirements for legal validity

It’s straightforward but powerful when it’s completed correctly.

The Human Side of Health Care Planning

Even a brief look behind the curtain of health care reveals that the human side is just as powerful as the clinical one. Stress, fear, and uncertainty can drive decisions in ways no one expects, and a clear, legally binding plan can make those moments far less daunting.

In cities with world-class medical resources, from Pittsburgh to Salt Lake City, these conversations about care often don’t happen until it’s too late. Once emotions take over, even the most loving families can find themselves in conflict.

The Takeaway

Every directive is more than a form. Rather, it’s a promise to yourself and to your loved ones. It’s a way to ensure that if you can’t speak for yourself, your voice is still heard.

None of us knows when a medical crisis will strike, but you can decide in advance what care you want and who should make decisions for you. It’s not glamorous, and yes, it can feel a little morbid. But as my fellow millennials would say, it’s peak “adulting,” and one of the most important steps you can take.

Pro Tip for Utah Residents: Download the official Utah Advance Health Care Directive form from the Utah Department of Health and review it with your attorney.

Ready to Make Your Wishes Known?

At Christensen & Jensen, we help clients create Utah healthcare directives that reflect their personal values and comply with Utah law. Whether you’re completing one for the first time or updating an old version, we can guide you through the process so you can move forward with peace of mind. Contact us today to get started.

So, you’re an entrepreneur with the next big idea? Maybe you’ve already started brainstorming logos, looking at locations, or thinking about hiring new employees. While the idea stage might be the most exciting part of bringing your business to life, an equally important part is fulfilling the legal requirements surrounding entrepreneurship in Utah. This article walks you through five essential legal to-dos, from choosing a business structure to registering for taxes, so you can move forward with confidence.

Step 1: Choose the Right Business Structure in Utah

Your first major decision is choosing a business structure. Choosing how your business is formed affects your personal legal liability, taxes, and how your business will be managed. There are four major types of business formations:

1. Sole Proprietorship
2. Partnership
3. Limited Liability Company (LLC)
4. Corporation (C-Corp and S-Corp)

Sole Proprietorship

This is the simplest type of business structure. Essentially, you are the business, and you report all income on your personal tax return. The downside is that you are personally liable for all business debts and legal claims. Sole proprietorships are a good fit for low-risk ventures like freelancing or small-scale services. If you use a business name different from your legal name, you will need to register a DBA (Doing Business As) with the state.

Partnership

If you are starting a business with someone else and do not form a formal entity, you have a General Partnership (GP) by default. All GP partners have unlimited personal liability for business debts. You can also choose a Limited Partnership (LP) or Limited Liability Partnership (LLP), which restrict liability for those partners. LPs and LLPs require registration, and a written agreement clarifies roles, responsibilities, and profit sharing between all classifications of partners.

Limited Liability Company (LLC)

LLCs are popular for small businesses and side hustles because they offer personal liability protection. When properly managed, your personal assets are shielded from business liabilities, provided there’s no fraud, illegal conduct, personal guarantees on loans, or commingling of funds. LLCs don’t require the same formalities as corporations, and profits typically pass through to the owners’ personal tax returns, avoiding double taxation.

Corporation

Corporations are more formal and typically better suited for businesses planning to raise capital or scale quickly. Like LLCs, they offer limited liability. An S Corporation (S-Corp) is popular with smaller businesses, and it allows profits to pass through to shareholders personal tax returns, avoiding double taxation, but it has ownership restrictions. C Corporations (C-Corps) are often the preferred structure for larger companies or startups aiming for venture capital. While they face stricter regulatory requirements, more complex compliance, and are subject to double taxation, C-Corps offer the advantage of no shareholder limits.

There is no single best structure. Think about your business’s risk level, whether you have partners or investors, and how you want to handle taxes. It is often helpful to consult with a lawyer or accountant to make the right choice.

Step 2: Register Your Business and Name in Utah

After selecting a structure, the next step is registering your business with the State of Utah.

Choose and Register a Name

You will need a unique name that does not conflict with other Utah businesses. Use the state’s online business name search to check availability. It is also smart to do a quick national trademark search to avoid future disputes. If you are a sole proprietor or general partnership using a business name that is not your legal name, you must register a DBA with the state.

File Formation Documents

LLCs must file a Certificate of Organization and Corporations file Articles of Incorporation with the state. Both forms ask for basic details like the business name, address, and registered agent. Utah provides an easy online portal for filing, and the fee is typically under $100. LLCs and corporations must list an in-state registered agent who can receive legal documents on the business’s behalf. Be cautious of third-party websites that charge high fees for filings you can complete yourself for a fraction of the cost.

Step 3: Understand Utah Business Taxes

Taxes are a part of running any business. Here is how to get started.

Apply for an EIN

The Employer Identification Number is your federal tax ID, like a Social Security number for your business. It is required for LLCs, corporations, partnerships, and any business with employees. Sole proprietors often get EINs to avoid using their personal SSN. You can apply for free on the IRS website and receive your EIN instantly.

Register for Utah State Tax Accounts

If you are selling products or taxable services, you need a state sales tax license. If you have employees, you must register for state income tax withholding with the Utah State Tax Commission and unemployment insurance through the Department of Workforce Services. You will also need workers’ compensation insurance once you hire employees.

Understand Your Tax Responsibilities

Different structures have different filing obligations for state and federal taxes. Sole proprietors file Schedule C as part of the owner’s individual Form 1040. Partnerships file Form 1065 and issue K-1s. S Corporations file Form 1120-S, and C Corporations file Form 1120. If your LLC is taxed as a sole proprietorship or partnership, you may want to elect S Corporation status for tax savings once you are profitable. Work with a tax advisor to make sure everything is filed correctly and on time.

Step 4: Get Licenses and Permits Needed to Operate in Utah

You may need additional approvals before you can legally open your doors.

State and Professional Licenses

Some industries in Utah require a professional license. This includes construction, cosmetology, financial services, healthcare, and others regulated by the Division of Occupational and Professional Licensing.

Local Business Licenses

Most Utah cities and counties require a local business license, even for home-based operations. Visit your city’s official website to see what is needed. The process typically includes an application, a small fee, and possibly a zoning or safety review.

Zoning and Permits

Many businesses require additional localized permitting. For example, if you are serving food, remodeling space, or operating out of a home, you may need health permits, fire department approval, or a home occupation permit. Always check your city’s zoning rules before signing a lease or launching operations. Having the right licenses shows you are serious, builds trust, and keeps you compliant. Many licenses must be renewed annually, so keep track of deadlines.

Step 5: Build Your Legal and Financial Foundation

A few final steps will help your business stay legally protected and financially organized.

Create Owner Agreements

If you are starting a business with others, create a written agreement. An LLC should have an Operating Agreement outlining management roles, profit sharing, and what happens if someone leaves. Partnerships should have written agreements. Corporations should adopt bylaws and keep minutes of their meetings. These agreements reduce future disputes and help preserve liability protections. Even if you are operating alone, consider writing a basic business plan and operational notes for future reference.

Open a Business Bank Account

Keeping business and personal finances separate is essential. Open a dedicated business checking account even if you’re operating your business by yourself. It helps with taxes, improves your professional image, and protects you from liability if you have an LLC or corporation. Banks may require your state registration documents, EIN, and for LLCs, an Operating Agreement.

Get Business Insurance

Insurance adds another layer of protection. General liability insurance can cover accidents or damage related to your operations. If you offer advice or services, look into professional liability coverage. Utah also requires workers’ compensation insurance for businesses with employees. Insurance is often affordable and can prevent major losses.

Plan for Ongoing Compliance

Legal compliance does not stop once your business is launched. LLCs and corporations must file an annual renewal with the state. Update your registered agent and address if anything changes. Renew local licenses, file your taxes, and keep good records. Setting calendar reminders or using management software can help you stay on track. As your business grows, think about legal needs like creating contracts, protecting trademarks and copyright, and hiring professionals for advice or bookkeeping.

Start Strong and Stay Compliant

Starting a business in Utah involves a few legal steps, but with the right preparation, you can launch confidently. It might seem like a lot to ensure you have the right entity structure, registrations, tax accounts, licenses, and internal setup, but these are all part of operating a business.

If you have questions or want personalized guidance, consider reaching out to a business attorney. Christensen & Jensen Attorneys are here for you. Our attorneys have guided Utah entrepreneurs through business formation, compliance, and planning. Let us take care of the legal side so you can focus on building your business.