How to Start a Driving School in Utah: A Step-by-Step Guide

Here you’ll learn everything you need to start your Driving School in Utah

Compared to many states, Utah makes it relatively easy to establish a driving school. You still  

need to complete forms, and meet requirements, but the state seems to be driving-school friendly.

Utah driving schools may offer classroom instruction and behind-the-wheel instruction. Some schools may opt to be testing only.

How to open your driving school in Utah

• Establishing a driving school in Utah is straightforward and clean.
• Your driving school will need to have an officially designated operator, who must also be a driving instructor.
• Driving instructors require 14 semester hours of driver education course credit.
• You must have a business office and classroom—but you may rent classroom space in another location (such as a public school).
• You must keep records electronically, many using the Driver License Division’s computer system; you’ll need to have written contracts also, but the form is up to you.
• Your driving school curriculum in Utah must have 18 hours of classroom time, 6 hours behind-the-wheel, and 6 hours of observation time.

Driving School Licensing and Requirements

General requirements

To operate a driving school in Utah, you will need to be licensed by the state. Licenses are valid for one year from date of issue. Submit your application at least 60 days in advance of licensing or renewal. In addition to a completed application form, your application packet should include the following:

• Samples of your forms, receipts, and curriculum.
• Schedule of your fees.
• A fingerprint card  for each applicant, partner, or corporate offices.
• Certificate of insurance for each vehicle you will be using.
• A copy of each test used during your driver training course.
• Evidence that you have taken out a surety bond.

The current regulations for commercial Driving Schools are straightforward and clear. Driving school instructors and owners should know and comply with them.

Utah requires the following minimum liability insurance coverage:

• $25,000 bodily injury to one person
• $65,000 bodily injury to more than one person
• $15,000 property damage

You may also have $80,000 in coverage for any one accident–covering liability for both bodily injury and property damage.

Your surety bond will depend on the Driver License Division’s calculation. The figure will be based on the number of students you could instruct over 3 months, based on your facility, personnel, equipment, and tuition. The amount will be between $5,000 and $60,000.

If you have employees, you must carry workers’ compensation insurance covering them–and potentially you–in the event of injury while on the job. You should, of course, consider higher coverages and/or an umbrella policy to cover your operations.

Driving School Operator’s License

Each Driving School in Utah must have a designated operator, and the operator must obtain a license. The operator must also have an instructor’s license. Owners, officers, and partners may be operators.

The application for an Operator’s license is included in the instructor application. Operators must demonstrate the following qualifications (in addition to those for the instructor license):

• Six college semester hours in business-related courses.
• Eight college quarter-credit hours in business-related courses.
• Two years’ experience operating a business.
• Any combination of those three qualifications.

Your operator–probably yourself–will demonstrate those qualifications through transcripts and/or resume.

You will also need to submit a business plan demonstrating how your school will meet the requirements of Administrative Rule R708-2–the rules governing commercial driving schools.

Driving Instructor’s License

While no specific requirements are set for driving school owners, instructors must demonstrate qualification before they receive a license from Utah. Submit the application form and the $25 fee. Instructors must meet the following qualifications.

• Be at least 21 years old. and have at least a high school diploma (or the equivalent).
• Have at least three years driving experience in the license class you will be teaching.
• Have a clean license
• Pass the criminal background check.

In addition. all Driving Instructors in Utah must demonstrate completion of 21 quarter hours or 14 semester hours of credit, including a course in teaching methods and another in basic driver training instruction/administration.

Driving instructors must also take written, road, and vision tests. A medical form must also be submitted.

Instructor licenses must be renewed annually.

Location

You are generally free to establish your business anywhere you see fit–meeting the requirements outlined below. You can choose to have classroom space, or you may conduct classroom driver education at off-site locations, including local public or private schools. Your contract with the school or other location should be included in your license application.

Your office space must meet local and state building requirements, and it must be accessible to the public during your regular business hours. It must be accessible to persons with disabilities as well as all guidelines set by the Registrar.

You may not locate your school within 1,500 feet of any office of the Driver License Division where it issues vehicle registrations or driver licenses, nor may your advertise or solicit business in that radius.

Classroom facilities must be in a building suitable for instruction. Compliance with local and state sanitation requirements is expected. The classroom must be equipped with suitable desks, tables, chairs and other items appropriate to the setting.

Your classroom can be in the same location as your main office, or at a different location. Classrooms must have all appropriate teaching equipment and aids.

Your school name cannot be substantially similar to that of another driving school, and you may not use the words “State”, “Government”, “Municipal”, “City”, or “County” in the school name, and you must use your school’s name only in advertising and publicity.

Don’t ever give a student or parent the impression that your instruction guarantees receiving a driver’s license–you may mention your pass rate.

Vehicles

Your vehicles need to have dual controls for the brakes. An interior mirror for the instructor must also be installed. A fire extinguisher, first aid kit, flares, and reflectors must be carried. Vehicles must be maintained to ensure they can pass state safety inspections at any time.

Your vehicles must clearly display “STUDENT DRIVER” on the front, rear, and both sides of the vehicle. The lettering must be at least 3” high. Your school’s name and other information may be on the vehicle. That lettering should not distract from the “STUDENT DRIVER” signage, and must be approved by the Division.

Records and Contracts

You must keep records of your instruction. You must use the Division’s record-keeping computer system to maintain your student records. The information to be recorded includes:

• Student names, dates of birth, training types, exact days/times for the beginning of each lesson.
• Instructor names for each lesson.
• Vehicle license plate numbers for each behind-the-wheel session.

Records must be updated within 24 hours for each student.

You must also maintain original copies of student contracts and receipts, insurance information, and surety bond information.

You may not give instruction without a written contract with the student and, when the student is under 18, the student’s parents. Your form of contract must be approved by the division.

The Driving School Curriculum in Utah

Your classroom course consists at least 18 hours of instructional time. These hours must be conducted on at least nine separate days, at 2 hours per session. Each session should be numbered and recorded by number on each student’s record.

Classroom topics may not be repeated except for review, and no more than 10 minutes per session may be dedicated to review. No more than five of the 18 hours may be devoted to slides/films.

The modules you must teach during the 18 hour classroom course are:

• Driver attitudes and physical characteristics
• Driving laws–focusing on Utah law.
• Driving in urban, suburban, and rural areas.
• Driving on freeways.
• Basic vehicle maintenance.
• Effects of drugs and alcohol on driving.
• Motorcycles, bicycles, and pedestrians.
• Driving skills
• Insurance and driver responsibility
• Suspension/revocation of the driver’s license.

You must provide 6 hours of behind-the-wheel instruction. No more than two hours of behind-the-wheel instruction may take place in a day. Instructors may not provide more than ten hours of behind-the-wheel instruction per day, and must have at least eight hours off duty before instructing again.

• Basic skills including starting and stopping and backing
• Driving on urban/suburban streets, highways, and freeways.

Two hours of fully interactive simulator training can be exchanged for one hour of behind-the-wheel training. four hours of non-fully interactive training can be exchanged for one hour of behind-the-wheel instruction.

Each student must also receive six hours of observation time, but may receive credit for no more than two hours of observation per day.

Commercial Driver’s License Instruction

Generally, the CDL training course is up to you. You will have to be licensed through the Division of Consumer Protection as a proprietary school.

Starting a Small Business in Utah

Your driving school is not just subject to the requirements for driver’s education in Utah. You also need to establish your Driving School as a small business, and have to consider a number of factors. The form of business you take up, as well as the procedures, are appropriate topics of conversation with your lawyer and accountant. The considerations we offer here are not legal advice, but should provide you with things to think about as you set up your business.

Business Registration

All businesses need to register in Utah, especially the business name—the “doing business as” certificate. Banks may not be willing to set up your account until you have that DBA form. We’ll include where to register in the business structures below.

You will also need to obtain a Federal Employer Identification Number. Banks may need it for your business accounts, and you may be wanting to employ people. To obtain an EIN, go to the IRS website and complete the application form you find linked there.

Sole Proprietorship

Owning your own business is the easiest one to set up, but also may open you to liability concerns. As a sole proprietor, your business is simply part of your life. You keep a separate set of books, and complete a Schedule C for your 1040 form every April.

Sole proprietorships can expose the proprietor for full liability, even with insurance. That may mean that if you are sued, you may lose your home and property, as well as your personal bank accounts and other assets. This risk may not be worth the ease and independence.

In Utah, the big step you have to take is to register your Assumed Business Name with state Division of Corporations and Commercial Code.

Corporations and LLCs

You may set up a full corporation (“Inc.”) as your business structure. Corporations limit your liability for loss to your investment in it, as a general rule (although banks may require you to be obligated personally if you take out a loan to get your business going). This form of business keeps your personal assets safe.

As an owner of a corporation, you’ll have to set up your driving school consistently with the rules for corporations in Utah. You’ll also have to decide whether to be an S Corporation or a C Corporation. Generally, the S Corporation form is set up for small businesses. It allows income and taxes to pass through to the owners. You will want to discuss these forms with your attorney and accountant.

You may be able to set your driving school up as an LLC in Utah. The LLC form provides the same limited liability as a Corporation, but do not have to comply with the corporate formalities most states require, including items like bylaws, required stockholder meetings, and minutes (although minutes of meetings are probably a good idea).

You’ll have to discuss the advantages and disadvantages for the LLC with your attorney and accountant.

Both Corporations and LLCs file with the Secretary of State. In addition to name reservation, you’ll need to file electronically.

Now What Do I Do?

Once you’ve complied with all the legal requirements to be both a driving school and a small business in Utah, you need to get students.

Getting students requires marketing—largely on the internet. You will need the following systems set up to obtain students:

• A website—focused on the types of students you want to attract, and aimed at your locality.
• The website should also include a blog, which allows you write about a variety topics and engage in Search Engine Optimization—which will drive traffic to your site.
• A Facebook page, linked to your website, to become noticed and drive traffic.
• Getting testimonials from successful students.

Marketing is something you will have to devote time to. DrivingSchool.Marketing can help you get the best bang for your marketing buck.

Conclusion

Disclaimer: This page is part of DrivingSchool.Marketing’s series of state and provincial pages designed to help entrepreneurs like you start driving schools. States change their regulations, or the web pages they host their forms. While we believe these rules are accurate as of the date of publication, we cannot guarantee full accuracy. Please let us know if you spot any problems.

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Josh Meah

Josh is the CEO of DrivingSchool.Marketing. His goal is to be the marketing and business development partner of driving schools around the world, helping them become thriving businesses while also expanding general awareness for the importance of traffic safety standards and education.

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