Utah Small Business Statistics
Utah is located in the west of the United States. The tourist potential here is infinite. Rafting, kayaking, skiing, rock climbing, and hiking are just a few of the activities offered to tourists here. This industry is the biggest contributor to the local budget.
Utah is known for its volunteer initiatives. More than half of the residents are Mormons. They, in turn, give 10 percent of their earnings to charity every month. This makes Utah the number one state in total donations. Altogether, they donate approximately $1.8 billion a year!
The state's residents support not only those in need but also small business development. This is especially true for the rapidly growing IT industry. This is the reason for the state's steady economic progress.
Utah is experiencing the fastest increase in the number of new jobs. That's why many aspiring entrepreneurs are flocking to this area from all over the country to take advantage of all the benefits available here.
In 2020, Forbes ranked Utah as the best state to do business in.
To assess the landscape and see if it's worth starting a company here, check out the statistics related to this issue.
Utah Small Business Stats: Key Info
- There are more than 300,000 small companies in the state;
- These firms make up more than 99% of all businesses in the state;
- Utah's second name is "the silicon slopes" because it boasts a great environment for tech startups. This is the reason for their active flocking to the state;
- $1.4 billion has been invested by venture capitalists in the state's business ecosystem;
- The net increase in new companies entering the state is approximately 2,000 firms each year. For example, between 2019 and 2020, there were 12,927 businesses registered in Utah;
- At the same time, entrepreneurs dissolved at least 10,968 entities. During this period, there was a net increase of 1,959;
- In Utah, there are 26,846 firms owned by both men and women;
- Among small business owners, women make up 43.8%, while men make up 56.2%;
- Hispanics and racial minorities own 11.9% of all small companies in the state;
- One of the most popular business structures in Utah is LLC;
- To register an LLC in Utah, you need to file Articles of Organization with the Secretary of State and pay a registration fee of $54;
- If you want to form a corporation, you also need to file papers with the Department of Commerce and pay a $70 filing fee;
- All business owners in the state are required to appoint a registered agent. Both company employees and hired professionals can perform the agent's tasks;
- Small business owners in Utah pay a corporate tax of 5% of their income. However, the amount cannot be less than $100;
- In-state biz owners also pay a 6.2% payroll tax on employees' salaries;
- In addition, Medicare tax is mandatory in the state. This is 1.4% of the employee's salary. However, if an employee's salary exceeds $200,000, the rate will increase to 2.35%;
- The state's export revenue is $13.3 billion. There are more than 3,000 small companies involved in this industry;
- These industries have the largest number of small businesses registered:
| Industry | Number of Companies |
|---|---|
| Professional, Scientific, and Technical Services | 51,628 |
| Real Estate and Rental and Leasing | 41,476 |
| Retail Trade | 33,646 |
| Other Services (except Public Administration) | 29,855 |
- The smallest number of companies is registered in these industries:
| Industry | Number of Companies |
|---|---|
| Management of Companies and Enterprises | 243 |
| Utilities | 243 |
| Mining, Quarrying, and Oil and Gas Extraction | 747 |
| Agriculture, Forestry, Fishing and Hunting | 1,809 |
Utah Small Business Stats: Employees
- The unemployment rate in Utah is slowly declining. Right now, it's 2.10% compared to last year's 2.30%. This is significantly lower than the national total;
- In Utah, there are more than 600,000 employees who are engaged in working for small companies;
- 45.5% of all employees in the state are involved in small businesses;
- Companies with up to 20 employees generate the largest number of new positions;
- The net increase in new positions averages 20,000 per year. For example, between 2019 and 2020, new businesses opened 133,313 positions, while small companies shutting down cut 109,465 jobs;
- During this period, there was a net increase of 23,848 jobs;
- Women make up 44.6% of all employees in the state, while men make up 53.4% of them;
- Hispanics and racial minorities represent 15% of the state's workforce.