Yes! It's true that many self-employed individuals, especially those who work from home, never get a business license in Utah. But if your local government finds out that you're running an unlicensed business, you might be fined, or even be prevented from doing business until you obtain the license.
State Overview: General Licensing Requirements The Utah Division of Occupational and Professional Licensing (DOPL) oversees contractor licensing in Utah. The state mandates that any individual or business performing construction work valued at $3,000 or more must hold a valid contractor's license.
A construction contract agreement is a form that documents all of the work you will do for a customer. A contract is only valid once both parties ratify it by signing in agreement.
It is illegal to hire a person who is not licensed to perform construction work on a project, unless the person is not required to be licensed. See Utah Code § 58-55-501(3).
Statutory Limitations Unless you specifically spell out a different time period in a contract, Utah law permits contract and warranty claims to be filed within six years of the date of completion (or abandonment) of the improvement.
You do not need a contractor license if your projects have a value of less than $3,000, including labor and materials. Instead, you must simply register with the DOPL if you plan to take on any projects valued at more than $1,000.
Without a license, you're limited to projects valued at less than $3,000. Although the state of Utah has strict requirements for general contractors, we're here to help you every step of the way.
The common method of contract termination is satisfactory fulfillment of all contractual obligations on the part of both parties. Another two typical bases for termination of contract is material breach of contract and default, or failure to perform under the contract.
Give adequate notice of at least two weeks, or up to 30 days, when possible (ensuring you follow any notice provisions in your professional services agreement). Gently remind the contractor of any agreement terms regarding intellectual property and works made for hire.
I trust this message finds you well. We are writing to inform you that, effective Last Date of Contract, your services will no longer be required by Your Company Name. Our collaboration with you has been valued, but due to Reasons for Termination, we have made the decision to conclude our working relationship.