Who is self-employed in Utah
- Silicon Slopes. Software, product and sales consultants billing corp-to-corp to the Lehi and Draper tech corridor, agency owners and independent professionals, mostly through S-corps with a modest salary.
- Direct sales. Utah is home to more direct-selling companies than any state, and their top distributors are 1099 earners with income that follows rank and season.
- Builders and trades. Framers, concrete, electrical and finish contractors building out Utah County, the Salt Lake suburbs and Washington County.
- Resort and second-home markets. Vacation-rental owners and seasonal businesses in Park City, Moab and St. George, earning on the ski, river and snowbird calendars.
- Farms and ranches in Cache Valley, Sanpete and the south.
What is specific to a Utah file
- No mortgage recording tax. Utah charges county recorder fees only; there is no state tax on the amount secured.
- Trust deeds. Utah records home equity liens as deeds of trust. Nothing changes at closing.
- HOAs and new-build suburbs. Dues are counted as an obligation. Automated valuations are reliable in the tract communities of the Wasatch Front and St. George, so lines to $400,000 usually close without an appraiser. Park City, Moab and mountain acreage are more likely to need one.
- Wildfire. On homes in the foothill and canyon interface, the property review confirms coverage is in force.
- Second homes and rentals. A Park City condo you use qualifies as a second home with lower maximums; one you rent qualifies on 12 months of rental deposits as investment property. Which home is primary follows where you spend the majority of the year.
The direct-sales return
A distributor at a high rank earns monthly commissions that swing with recruiting and the product cycle, and writes off travel, events, inventory and a home office. The return shows a modest net for what the account shows was a strong year. A bank lends on the net. This program reads the 12 months of commission deposits from the company into the account and sizes the line from those.
Common questions
I'm a direct-sales distributor. Is commission income from one company self-employed?
Yes, on a 1099. Twelve months of commission deposits into your account are the income.
I bill a Lehi company corp-to-corp through my S-corp. Which account do you read?
The one that receives the contract payments — the business operating account — not the salary you pay yourself.
Can I get a line on my Park City rental?
Yes, as an investment property with lower maximums. Twelve months of rental deposits are the income. An appraiser is more likely in a resort market.
Is there a Utah tax when the lien is recorded?
No. County recorder fees only.