Business Licensing & Operations in Orem, UT

Orem maintains 119 local ordinances across all categories, and 7 of those deal specifically with business licensing & operations. Here is a breakdown of what the city actually requires, what is prohibited, and where Orem falls on the strict-to-permissive spectrum compared to other cities.

Massage Establishments

Orem requires anyone operating a massage establishment to hold a City massage establishment license under Code 12-5-14, on top of state licensing under the Massage Therapy Practice Act. Applicants must be at least 21, pass background checks, and disclose prior license revocations. Three violations at one location within a year trigger a one-year licensing ban for that address.

Key details: License required: City massage establishment license, Code 12-5-14. Minimum age: 21 years old. Background check: Utah BCI check within 60 days. Alcohol: Prohibited on the premises. Penalty: Class B misdemeanor; touching under Utah Code 58-47b-503.

Operating without the City license, letting an unlicensed masseur work, serving alcohol on-site, or touching a patron's specified anatomical areas are all unlawful under 12-5-14(G). Touching violations are prosecuted under Utah Code 58-47b-503; every other violation is a class B misdemeanor. Three violations at one address within twelve months bars any new massage establishment license there for a full year, and the Chief of Police can revoke or suspend a license for repeated violations.

Compared to other cities, Orem takes a harder line on massage establishments. The enforcement and penalty structure reflects that.

Adult Entertainment

Orem confines adult businesses, seminude entertainment businesses, and seminude dancing bars to zones set out in Article 20 of Chapter 22, and Code 12-7-7 bars anyone from operating any sexually oriented business without a City license. Outcall services and seminude dancing agencies are licensed but not zone-restricted. License fees run $100 to $200 a year, backed by a $2,000 bond.

Key details: License required: For all 5 SOB categories, Code 12-7-7. Zoning limit: Adult/seminude businesses need Article 20, Ch. 22 zones. Bond required: $2,000 cash or surety bond. Annual fee: $100 to $200 depending on category. Penalty: $500 civil fine plus class B misdemeanor.

Operating any sexually oriented business, or employing anyone in that role, without the required City license violates Sections 12-7-7 and 12-7-11. Each violation draws a $500 civil penalty deducted from the licensee's bond, and any violation not covered by Utah Code 10-8-41.5 is a class B misdemeanor, with every day of continued violation counted as a separate offense. The City can also suspend or revoke the license outright.

This is one of the stricter rules in Orem's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

Pawnbrokers

Before Orem issues a pawnshop or dealer business license, City Code section 12-5-5 requires the operator to post a corporate surety bond guaranteeing faithful performance of every duty in the section. Licensees, including their employees and agents, must record each transaction in ink, verify photo identification, and keep the shop closed outside a 7:00 a.m. to 10:00 p.m. window enforced by the Orem Police Department.

Key details: Bond required: Corporate surety bond set by City Council. Business hours: 7:00 a.m. to 10:00 p.m. only. ID threshold: Thumbprint required over $20 purchases. Ticket copies: Delivered to Police Department weekly. Enforcing agency: Orem Police Department.

Operating without the required bond in place before licensure, skipping the mandatory ink-written transaction record, issuing an unnumbered ticket, or buying goods without adequate identification or the required thumbprint over $20 are each declared unlawful under Section 12-5-5. The Police Department reviews weekly ticket copies and can demand release of suspect property; violations expose the business license to suspension or revocation in addition to prosecution.

Secondhand Dealers

Orem dealers in secondhand, junk, or antique property and precious metal must hold every item for thirty days from the date received before selling or otherwise disposing of it. Guns, jewelry, electronics, tools, and numismatic coins can never skip this hold through the low-value or buyer-ID exceptions; only written Police Department permission or a pledgor's redemption cuts the wait short.

Key details: Hold period: 30 days from date received. Never-exempt goods: Guns, jewelry, electronics, tools, coins. Low-value exception: Items purchased for $20 or less. Early release: Written Police Department permission only.

Selling, trading, or otherwise disposing of pawned, secondhand, junk, or antique property before the thirty-day hold expires, without a qualifying exception, is unlawful under Section 12-5-5. Applying the $20-or-less or buyer-ID exception to guns, jewelry, electronics, tools, or coins is likewise a violation, since those categories can only leave early with written Police Department permission or, for pawned items, return to the pledgor.

Towing Companies

No one can run a commercial towing or parking-enforcement business in Orem without Utah Department of Transportation certification and an Orem business license, or, for companies already licensed elsewhere in Utah County, City registration. A $1,000 surety bond, liability insurance, and annual December filings with the Police Department keep the license active.

Key details: State certification: Utah DOT towing company cert required. Surety bond: $1,000.00 minimum. Annual filing: Due by December 31 each year. Vehicle marking: Permanent name/address/phone signage required. Enforcing agency: Orem Police Department.

Operating without valid UDOT certification, without an Orem business license or required registration, without the $1,000 surety bond or property-damage insurance on file, or without the December 31 annual refiling, is grounds under Section 12-5-13 for the City to suspend or revoke the company's Orem business license or its right to conduct towing or parking enforcement in the City, even if licensed elsewhere.

Tobacco Retail License

A retail tobacco specialty business in Orem, a shop built around vape, e-cigarette, or tobacco sales, can't sit within 1,000 feet of a school or park, 600 feet of another such shop, or 600 feet of residential or agricultural land, and the City caps the total citywide at one per 25,000 residents.

Key details: Community-location buffer: 1,000 feet. Buffer from another tobacco shop: 600 feet. Residential/agricultural buffer: 600 feet. Citywide cap: 1 per 25,000 residents. Triggering threshold: 35% of receipts or 20% of floor/shelf space.

A retail tobacco specialty business that opens inside a barred buffer, or that pushes the City over its one-per-25,000-residents cap, is operating in violation of Section 22-14-21(D) and can be denied or have its business license revoked by the City. As with other Chapter 22 zoning violations, a knowing violation carries the Section 22-1-6 penalty: a Class C misdemeanor, up to a $500 fine, and up to three months in jail.

This is not one of those rules that cities tend to ignore. Orem actively enforces its tobacco retail license requirements.

Tattoo & Body Modification

Orem's zoning code does not allow standalone tattoo parlors. Appendix A's Specified Land Use Table lists SLU 6232, Tattoos and Body Piercing, as permitted only as an accessory to a licensed beauty shop (SLU 6231), and only in the C2 and C3 commercial zones. A tattoo or piercing business cannot generate more than 15% of the beauty shop's revenue and must use a three-needle or lighter method.

Key details: Zoning classification: SLU 6232, Tattoos & Body Piercing. Permitted zones: C2 and C3 commercial zones only. Use type: Accessory to a licensed beauty shop only. Revenue cap: Under 15% of the beauty shop's revenue. Method limit: Three-needle (or less) method only.

Operating a tattoo or body piercing business outside the SLU 6232 limits, such as a standalone parlor, one located outside the C2 or C3 zones, one exceeding the 15% revenue cap, or one using a method other than three-needle or less, is not a permitted use under Appendix A. Section 12-3-3 makes permitted-use status under Appendix A a precondition of getting a business license, so the City can deny the license and require the operator to cease business at that location.

Compared to other cities, Orem takes a harder line on tattoo & body modification. The enforcement and penalty structure reflects that.

The Bottom Line

Orem is tougher than many cities when it comes to business licensing & operations. Out of the 7 rules covered here, 4 are rated strict. If you are a homeowner, renter, or business owner in Orem, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

Keep in mind that Orem can amend these rules at any council meeting. For the most current version of any rule mentioned here, check the specific ordinance page, where we track updates as they happen.