According to IRS (Internal Revenue Service) tax return records, the Salt Lake State ranks first among all US states in the proportion of income given to charity by the wealthy. This is due to the standard 10% of all earnings that Mormons give to The Church of Jesus Christ of Latter-day Saints, with Mormons representing 62% of Utahans. Between 2008 and 2010, 884,000 volunteers contributed 89.2 hours per volunteer, equating to $3.8 billion of service contributed. Thus Utah became the number one state for volunteering in the nation.
This brotherly love also extends to Utah's business community. There is a chummy community that provides endless support for small business (SMB) owners, especially in the growing technology industry, which has contributed to the state's remarkably stable economic growth. According to a 2019 report by the Bureau of Labor Statistics, the state ranks first in private-sector job growth at 4%, first for total job growth in the nation at 3.6%, and fifth in unemployment.
Just as in most states, entrepreneurs will encounter challenges, but small business owners are happy to start and grow their businesses in the Beehive State.
Here are some interesting small business statistics from the state of Utah:
- There are 301,265 small businesses in Utah, representing 99.3% of all businesses in the state.
- Utah is referred to as the “Silicon Slopes” due to the high number of technology start-ups springing up in the state, while also attributing to the mountainous terrain.
- The state has 590,417 small business employees that account for 46% of all employees in the state.
- Utah’s corporate income tax is calculated at a flat 5% of taxable income with a minimum tax of $100. If your LLC (limited liability company) is taxed as a corporation you'll need to pay this tax.
- When forming a corporation in Utah, you need to file your Articles of Incorporation with the Department of Commerce. The filing fee is $70.
- Employers in Utah have to pay a 6.2% wage tax and a Medicare tax, which is 1.45% of each employee's taxable wages up to $200,000 for the year. For wages above $200,000, there is an Additional Medicare Tax of 0.9%, which brings the rate to 2.35%.
- State law requires that every new Utah LLC designate a Utah registered agent that will be available during regular business hours at a physical address within the state.
- Five industries have the highest number of small industries:
- Professional, scientific, and technical services — 48,732
- Real estate, rental, and leasing — 40,036
- Other services (except public administration) — 34,961
- Retail trade — 33,513
- Construction — 27,036
- There are 3,181 small business exporters in Utah that account for 61.1% of the state’s $13.3 billion export revenue.
- In 2018, 2,399 small businesses closed down, resulting in 8,336 lost jobs. During the same period, 3,811 small firms started up, employing an additional 11,464 workers.
- The median income for self-employed individuals at their own incorporated businesses is $52,000. For those without incorporated businesses, their median income is $22,000.
- Private-sector employment in Utah went down by 8% during the 12-month period ending in April 2020.
- In 2018, banks in Utah issued 61,941 loans under $100,000 to small businesses while reporting under the Community Reinvestment Act. A total value of $990.6 million.