How to Start a Nightly Rental Business in Moab: Licence Fees and Where Rentals Are Zoned

Moab sits next to Arches and Canyonlands national parks, which keeps short-term rental demand high. The town regulates nightly rentals with two separate tools. The zoning code decides where a rental can operate, and a city license decides whether you may operate there at all. Approval under one does not satisfy the other. If you are searching for a moab short term rental permit, know that Moab calls it a nightly rental license, and you need zoning approval before you can apply for it. Check both before you buy, lease, or list a property.

This guide follows the order that avoids the most expensive mistakes: confirm the location, confirm the zone, register your business with the state, then apply for the Moab license. The fees below come from the state and Moab fee schedules as reviewed for this article. Confirm each one with the agency before you pay.

This article is informational content, not legal or tax advice. Ordinances, zoning maps, and fee schedules change. For zoning disputes, lease terms, or choosing a business structure, talk with a Utah attorney. For tax questions, talk with a CPA.

Materials and Information You Need Before You Start

Gather these items before you contact any agency. Missing paperwork is the easiest delay to avoid.

• The full property address and parcel number, plus proof of ownership or a signed lease.
• Written permission from the owner if you are leasing, and a copy of any HOA or condo rules that restrict rentals.
• A written zoning answer from Moab Planning for that specific parcel.
• A chosen business structure: sole proprietorship, LLC, or corporation.
• A login for the Utah Business Registration System at businessregistration.utah.gov (UtahID required).
• A Utah street address for your registered agent, which can be you or a commercial registered agent.
• An EIN from the IRS and a Utah sales tax account through the Tax Commission's TAP system.
• A separate business bank account and a budget that covers every fee in the table below.

The Fees at a Glance

Item	Amount	Where it is paid or filed
Moab nightly rental license, initial (four or fewer units)	$250	Moab Treasurer's office
Moab nightly rental license, renewal (four or fewer units)	$52	Moab Treasurer's office
LLC Certificate of Organization	$59	Utah Division of Corporations and Commercial Code
Corporation Articles of Incorporation	$59	Utah Division of Corporations and Commercial Code
LLC or corporation annual renewal	$18 per year, plus a $10 late fee if renewed late	Utah Division of Corporations and Commercial Code
Expedited processing	$75 per filing	Utah Division of Corporations and Commercial Code
Name reservation (held 120 days)	$22	Utah Division of Corporations and Commercial Code
Assumed name (DBA) registration	$22 to register (three-year term; check the portal for the renewal fee)	Utah Division of Corporations and Commercial Code
Commercial registered agent registration	$52	Utah Division of Corporations and Commercial Code
Sales tax account	Confirm the fee on the TAP site	Utah State Tax Commission

The Moab figures come from the Master Fee Schedule in Moab Municipal Code chapter 3.50, using the nightly rental fee table in Ordinance 2023-11. The council amends the schedule, so check the current figures on moabcity.gov before you budget.

Step-by-Step: Starting a Moab Nightly Rental

1. Confirm the property is inside Moab city limits.

   The Moab nightly rental license applies inside city limits only. A parcel in unincorporated Grand County goes through a separate county process, and a Moab license does not cover it. A Moab mailing address or a familiar neighborhood name does not prove the property is inside the city, so ask the city or county to confirm the parcel's jurisdiction. Also remember that a city business license does not transfer to another city. A license for a property in one town will not help you in another.

2. Get a written zoning answer from Moab Planning.

   Nightly rentals are governed by Moab Municipal Code chapter 5.67, and they are allowed only where zoning permits. Call Moab Planning with the parcel number and ask four questions: what zone the parcel is in, whether nightly rental is a permitted use in that zone, whether any conditional approval or overlay applies, and whether any amendments are pending that could change the answer. Get the answer in writing if you can. Do not buy or sign a lease based only on a phone call. Zoning amendments can change the picture between your offer and your opening day.

3. Choose your business structure.

   Utah has no statewide general business license, so your structure choice affects liability, taxes, and paperwork rather than a state license. A sole proprietorship has no separate state entity filing. An LLC files a Certificate of Organization and pays no separate LLC franchise tax. By default it is taxed like a partnership or sole proprietorship, with income passed through to its members and taxed at Utah's flat 4.45 percent individual income tax rate for tax years beginning on or after January 1, 2026. Confirm the rate for the year you file. An LLC that elects corporate treatment pays the 4.45 percent corporate franchise and income tax, with a $100 minimum tax. A corporation files Articles of Incorporation. These choices carry legal and tax consequences, so confirm yours with a CPA and an attorney.

4. Register the entity with the state.

   For an LLC, file the Certificate of Organization through the Utah Business Registration System at businessregistration.utah.gov. The filing fee is $59. The name must contain 'limited liability company,' 'limited company,' or an abbreviation such as 'LLC,' and it must be distinguishable from existing names on the Division's records. Most online filings are approved instantly. Filings that need manual review are stated at 2 to 4 business days, and the Division has posted 7 to 10 business days during backlogs. Expedited processing adds $75 per filing. If you need to hold a name while you finish other paperwork, a name reservation costs $22 and lasts 120 days. Filing is a registration with the Division, not a Moab permit.

5. Register a DBA if you will rent under a brand name.

   If your listings will use a name other than your legal name, file an assumed name (DBA) registration. It costs $22 to register, and the registration runs for a three-year term (check the portal for the renewal fee). The filing goes to the Utah Division of Corporations and Commercial Code, statewide, not to the county. Details are at commerce.utah.gov. A DBA is a registration, not a license, so it gives you no permission to rent a property in Moab.

6. Appoint a registered agent with a Utah street address.

   Every registered LLC and corporation must name a registered agent for legal papers. The agent needs a Utah street address. A PO box may be listed in addition to the street address, but it cannot replace it. The agent can be an individual or business registered with the Division and in good standing, or a commercial registered agent, which costs $52 to register. Appointing an agent is your affirmation that the agent has agreed to serve.

7. Get an EIN and a Utah sales tax account.

   Apply for an EIN with the IRS. Banks typically ask for one, and an LLC or corporation with employees needs one for payroll. Then register for a sales tax account through TAP at tap.tax.utah.gov. Utah requires this registration for any seller with an established presence in the state. Ask the Utah State Tax Commission at tax.utah.gov how lodging sales are taxed in your situation. The state rate is 4.85 percent, and combined state and local rates run from 6.35 percent to 9.55 percent (up to 10.05 percent in some special districts) depending on the jurisdiction, so confirm the combined rate that applies in Moab. Also ask whether any transient room tax applies in addition to sales tax.

8. Apply for the Moab nightly rental license.

   Apply through the Moab Treasurer's office at 435-259-5123. Nightly rental licenses are issued per property location, so each rental property needs its own license. For four or fewer units, the initial fee is $250 and the renewal fee is $52, under the schedule reviewed for this article. Approval can take about three days. Licenses that need council approval can take up to six weeks, so ask the Treasurer which track your property falls under before you set a launch date. Utah Code 10-8-85.4 lets a city require a business license for short-term rentals. Ask the Treasurer whether the nightly rental license is your city business license or a separate permit, and request the current application checklist.

9. Set up insurance and listing rules before the first booking.

   Talk with an insurance agent about short-term rental coverage before you accept guests. A standard homeowners policy often excludes paid short-term stays, and an uninsured claim can cost far more than the license. Confirm any occupancy, parking, or guest conduct conditions attached to your license and zoning answer, and write them into your house rules so guests see them before they book.

10. Put every deadline on one calendar.

    An LLC's annual renewal opens 60 days before the anniversary date. The renewal is $18, with a $10 late fee. A DBA registration runs for a three-year term, so check the portal for its renewal fee and date. The Moab license renewal is $52 under the schedule reviewed here, and it recurs each year. Add your sales tax filing schedule, which the Tax Commission assigns to your account. Missing one of these is the most common way an active rental loses its paperwork.

Common Mistakes to Avoid

• Buying before the zoning answer. A purchase made on a verbal assurance can end up with a property you cannot rent nightly.
• Looking for a Utah state license. Utah has no statewide general business license. Your Division of Corporations and Commercial Code filing is a registration, and the Moab license comes from the city.
• Treating a county property as a Moab property. Unincorporated Grand County parcels follow a separate county process.
• Assuming a license transfers. A city business license does not carry over to another city, and a new owner generally needs their own application.
• Believing a DBA grants permission to rent. A DBA only registers a trade name with the state.
• Listing before approval. Taking bookings before the Moab license is issued creates problems that are hard to unwind with guests already booked.
• Budgeting for the initial fee only. The $52 renewal, the $18 state renewal, and insurance recur every year.
• Relying on an old fee schedule. The council amends the Moab schedule. Check the current figures on moabcity.gov before you pay.

Tips That Save Time

• Ask Moab Planning for the written zoning answer before you make an offer, and make the purchase contingent on it if your purchase agreement allows.
• Call the Treasurer's office early and ask whether your property needs council approval. That answer determines whether you should plan for three days or up to six weeks.
• Ask the Utah Small Business Development Center at utahsbdc.org to review your plan before you file. An outside review often catches a missing step.
• Keep one folder with the zoning letter, state filings, sales tax confirmation, and Moab license. Lenders, insurers, and booking platforms will ask for these documents.

What to Expect When You Finish

If the zone permits nightly rental and each step goes as planned, you may be able to take your first booking once the Moab license is issued and your state registrations are on file. Online state filings are often approved instantly. A routine Moab license approval may take about three days, and a council-approved license may take up to six weeks. Revenue depends on the property, the season, and local demand, and this guide does not project income. Expect recurring costs for insurance, taxes, and renewals, and build them into your pricing before you set your first nightly rate.

Official Resources

• Utah Business Registration System: businessregistration.utah.gov
• Utah Division of Corporations and Commercial Code: commerce.utah.gov/corporations
• Assumed name (DBA) registration: commerce.utah.gov DBA page
• Utah State Tax Commission: tax.utah.gov
• TAP sales tax registration: TAP sales tax account
• Moab city fees and ordinances: moabcity.gov
• Utah Small Business Development Center: utahsbdc.org

For a complex purchase, a business partnership, or a property in a zone with pending amendments, consult a Utah attorney and a CPA before you commit.