Utah Contractor Practice Exam

How are Sole Proprietorships licensed in Utah?

1. The license will be issued to any person the owner selects

2. The license will be issued to the individual in his/her own given name

3. The license will be issued to qualifying individuals only

4. All of the above

The correct answer is: The license will be issued to the individual in his/her own given name

Sole proprietorships in Utah are licensed in a manner that primarily identifies the individual who owns the business rather than any other entity or person. The licensing authority recognizes the sole proprietor as a single entity with no legal separation between the owner and the business. This means that the license is issued specifically in the individual's own given name, reflecting personal accountability for the business's operations and obligations. This naming convention not only emphasizes the personal responsibility for debts and liabilities inherent in a sole proprietorship but also streamlines legal processes by clearly associating the business with its owner. In other words, if a person operates a sole proprietorship, they would need to apply for the license under their name, which is essential for both legal and operational purposes. While there might be considerations regarding selected individuals or qualifications, they are not the main context of how sole proprietorships are licensed in Utah, making the option centered around the individual’s own name the most accurate representation of the licensing process for this type of business structure.