How to Start an LLC in Utah (UT LLC 2024) (original) (raw)
How to Start an LLC in Utah: If you’re looking to start a Utah LLC, you’ve come to the right page. Setting up an LLC is easy and cost-effective. To form an LLC, you must follow a few steps that include naming your LLC, hiring a registered agent, filing your formation documents, doing the operating agreement, and finally obtaining the EIN. You can easily set up your LLC at a very low cost in Utah. Though, you must pay the mandatory state filing fee. These fees and charges can be tax deductible, making the LLC formation cost almost negligible.
On this page, You’ll find all the steps that must be taken to ensure that your Utah LLC has been correctly formed. We recommend you read the whole article very carefully, word by word, don’t miss anything 🙂
How to Start an LLC in Utah
An LLC (aka Limited Liability Company) is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection. For an LLC, members’ personal assets are not affected by business debts. However, in some cases, if the LLC is sued for business debts, courts might pierce the corporate veil and use the owner’s personal assets to meet their corporate liabilities.
If you wish to start an LLC in Utah, you must file your Certificate of Organization with the State and pay a filing fee of $70. While it’s the most important step, it’s not the only one. There are 4 other crucial steps to follow to get your LLC formed in Utah. Below are all 5 steps that explain everything you need to do to start a Utah LLC in 2024. Let’s get started! You can always hire a professional LLC formation service in Utah to set up your LLC instead of doing it alone; a Pro service will ensure everything is done properly.
Step 1: Decide a Name for Your Utah LLC
The first step while forming a limited liability company in Utah is to give a proper name to your LLC. Before you name your business, you must know that the name should be easy to remember, available in the state, and follows all the LLC naming guidelines.
Utah LLC Naming Guidelines
There are a few specific requirements all the LLCs in Utah have to follow while naming their Company. Some of the most important requirements are as follows:
- “Limited Liability Company”, “LLC”, and “L.L.C.” – any one of these has to be used as a suffix in your business name.
- You cannot use any name for your business that is confusing or misleading. Terms such as “Treasury”, “State Department”, “FBI”, “CIA”, etc. shouldn’t be included.
- Terms like “Bank“, “University“, “Attorney“, “Doctor“, etc can be added only after the additional requirements by Utah State Government are fulfilled.
- (Optional) It’s better to name your business something for which your desired domain is available.
| Important Links – | Submit Offline Form to – |
|---|---|
| Utah Business Entity Search – Online Name SearchName Reservation Form – PDFName Availability Standards – GuidelinesUtah LLC Name Search – Instructions | Utah Division of Corporations & Commercial CodeP.O. Box 146705Salt Lake City, UT 82114-6705Fax to: (801) 530-6438 |
Reserve Business Name for Future
If you do not wish to file your LLC right now but want to hold the name you have decided on, then you can reserve your LLC name for 120 days. To keep the name, you must file a name reservation application and pay $22 to reserve your name with the Utah Secretary of State.
Doing Business As (DBA) or Trade Name
Once you have a legal name for your LLC, you can register it. However, it is not mandatory. You can, instead, use DBA, Fictitious Name, or Trade Name. In that case, you must register your name with the Utah Secretary of State by submitting an Application to Register Trade Name in Utah and the filing fee of $22.
Recommended: You can do name search, business domain, website, emails, and a lot more in one place by hiring a professional service. We recommend using –
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ZenBusiness – ($0 for LLC Formation)
Apart from LLC formation, ZenBusiness offers customized website templates and business emails at a very reasonable price. If you plan to get a website, then it is wise to have a “.com” domain for your business, but these days you can also use other TLDs like “.io”, “.company”, “.xyz,” etc. Here you can get everything you need for your business in one dashboard.
Do I have to include LLC in my company email/domain?
It is not legally mandatory to use the word LLC in your domain name or email. If you want, you can use it. However, it is recommended not to use LLC in the domain name. A domain name should be short and easy to remember.
Step 2: Assign a Registered Agent in Utah
The second step to forming an LLC in Utah is to appoint a Registered Agent. A registered agent is a person or business entity working on your LLC’s behalf. This person or business will receive important tax forms, legal documents, all notices of lawsuits, and other official government correspondence in Utah. Hence, hiring a competent Utah Registered Agent for your LLC is necessary.
Make sure your registered agent is a resident of Utah or has a physical street address. This address will be used as the principal address of your LLC to receive any legal documents. Most LLC formation companies also provide registered agent services. Below are two great LLC formation services; even if you buy their cheapest plan (normally $0), you also get registered agent service and other services at a very reasonable price.
| LLC Service | Our Rating & Pricing | Top Features | Learn More |
|---|---|---|---|
#1 TOP PICK |
4.5/5 $0 + State Fees | 100% accuracy guarantee Worry-free service Great customer support | Learn More |
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4/5 $0 + State Fees | Free LLC Formation Affordable Add-on services Other business solutions | Learn More |
These two are our top recommendations for registered agent service, as they are competent and authorized to conduct business in Utah. Some LLC formation services also offer standalone Utah registered agent services. You can purchase only Registered Agent services without purchasing any other LLC formation services. This standalone service might become handy if you are doing it yourself and don’t want to disclose your home address or you don’t want to pierce the corporate veil.
Who Can Be a Registered Agent?
A person above 18 years of age and has a physical address in the state of Utah can be a Registered Agent. A Registered Agent can be an independent person or can be a business entity. One is responsible for handling all the legal documents on the LLCs behalf.
Can I Be My Own Registered Agent?
Yes, you can be your own registered agent if you are a resident of the state of Utah and you are above 18 years of age. To become a registered agent, you must have the authority to conduct any type of business in Utah.
Why Shouldn’t I be My Own Registered Agent?
There are a few reasons why you shouldn’t be your own registered agent. The address of the registered agent is used to communicate with the SOS or for any legal activities. If you are your own registered agent, you might have to upload your personal address to the public forum. Besides, the registered agent must be at the address during business hours. It won’t be easy for you as you also have to take care of other things in your LLC. Hence, it is wiser to appoint a separate entity as your registered agent.
What is Piercing the Corporate Veil in LLC?
If an LLC is sued in Utah, in some cases, courts might decide to lift the corporate veil, which means the owners of the LLC will be personally liable for their business debts. They might have to forgo their personal assets to repay their business debts. This is called piercing the corporate veil, where personal and business assets are not separated anymore. Your personal assets can be protected if you have enough capital and all your LLC documents are properly filed.
Registered Agent Consent Application
In Utah, there is no separate Consent Letter to be produced to the Secretary of State. At the time of change of Registered Agent (or the name or address), the new Registered Agent has to sign the consent letter. It comes with the Application form to Change the Registered Agent. The filing fee of $15 should be paid for it. For more information on the same, read our guide on Utah Registered Agent.
Step 3: File Certificate of Organization in Utah
The third and most important step in forming a Utah LLC is to file the Certificate of Organization. This Utah Certificate of Organization is a legal document that is required to register your business with the Utah Secretary of State. It costs $70 to file your formation certificate in Utah.
The Certificate of Organization includes details like the name of the LLC, the registered agent’s name, address, employees’ details, and the company’s structure (member-managed or manager-managed). Before hiring employees in Utah LLC, one should know about the rules and regulations thoroughly. Also, if you are expanding your existing business (an LLC) in other states to Utah, you must register as a Utah Foreign LLC.
How to File Online
Go to the Secretary of State Online Service. You will get the online service page. If you are already a subscriber then click on the “log in to Subscribe Account” option and log in with your credentials. If you’re not subscribed, then you can directly start filing your LLC by clicking on the “Online Filing” button below. Read more about the Utah Certificate of Formation for online registration.
Processing Time: Normally, it takes around 7 business days (approx) to get your LLC formed in Utah. The processing time for online filing might be a little faster than offline filing. With an additional cost, you can get expedited filing as well. However, the document processing time can be changed due to various factors.
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Every LLC owner has to pay the filing fees to register their business in Utah. This fee is mandatory but also tax deductible. If you’re doing it yourself (filing on your own), it will not cost you any additional service fee. However, it is not feasible to do that as the DIY process might be delayed, complicated, and messy, especially if you’re a novice entrepreneur. Hence, it is recommended to get professional guidance to get your LLC formed in Utah.
Step 4: Create Your Utah LLC Operating Agreement
Moving on to the fourth step, filing your operating agreement. An operating agreement is a document that legally outlines the proprietorship and operating procedures of your LLC. If you’re forming an LLC with a real-life partner/spouse, you must need an operating agreement for that. This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
When it comes to filing a Utah LLC Operating Agreement, the state does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all the details of your business operation that helps in taking future business decisions, especially if you decide to dissolve Utah LLC later. Hence, having an operating agreement may not be necessary, but it is surely ideal.
Recommended: You can get a professionally made operating agreement for very less cost with ZenBusiness. You don’t need to worry about drafting it as they will take care of it on your behalf. We recommend using –
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The operating agreement draft can be created for free if you don’t hire a professional. However, there is an advantage to appointing a proficient person/service. You will get a businesslike quality operating agreement at a very cheap fee, which will help you in the future. Hiring a professional service means you can sleep well at night 🙂
Step 5: Filing a Utah LLC EIN
The Employer Identification Number (aka EIN) is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify the type of business for tax purposes and taxes in general. The EIN is necessary for any active business or any form of business.
An EIN number in Utah is needed when the LLC hires employees. Hiring employees in Utah LLC requires following specific rules and regulations. On the other side, EIN for Utah foreign LLC should be obtained if your LLC is based in other states.
To obtain EIN (aka FEIN), one must fill up a form (Online or by mail) and submit it to the IRS. Enter details of your LLC, and finally, complete the form and send it to the address given. You can also get an EIN Assistant to help you with the process.
Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Fax: (855) 641-6935 | Fee: Free
Recommended: This hassle will be reduced when you hire an LLC formation service. They take care of obtaining EIN and all other things for your LLC. We recommend using –
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Note: You don’t need a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.
Congratulations, you are now done with all the necessary steps to form your Limited Liability Company in Utah. If you do it yourself, it should take you a long time to understand and do all the steps properly.
However, if you use ZenBusiness, it should be way faster. You will always have a live chat option and phone support with experts for any help you need. Their worry-free service will make things easier for you.
After Starting Your Utah LLC
After forming your LLC, there are still some things that you will need. The most important thing is to separate your business and personal assets. LLCs have limited liability protection that protects your personal assets from business liability. This is called a corporate veil. However, the corporate veil can be lifted or pierced by the court if the LLC is sued. In that case, the owners of the LLC become personally liable for their corporate debts. A few things like appointing a legit registered agent, having enough capital, and filing all the major documents with the state can save the LLCs from being pierced into the corporate veil.
BOI Report Filing
According to the Corporate Transparency Act, every LLC, corporation, and other type of business that is registered with the Utah SOS or similar authority, must file the BOI report with FinCEN. From January 1, 2024, it is mandatory to file a BOI report for every business entity. In this report, LLCs have to share information about the beneficial owners (having equal or more than 25% share). LLC owners can file BOI reports online or offline.
LLCs in Utah that are created before January 1, 2024, should file their BOI report by January 1, 2025. LLCs that are created in 2024, must file the BOI report within 90 business days of finishing the LLC formation process. Missing out on filing the BOI report may lead to a monetary penalty of $500/day.
Apart from that, there are a few things you need to take note of,
- Get a company business bank account
- File Utah business permits & licenses
- Get general liability insurance and professional liability insurance with coverage for employees.
- File a Utah LLC annual report or biennial report
This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings to make sure your LLC is up-to-date.
The LLC formation processing time in Utah is 3-7 business days if filing offline (by mail). The process takes 2 business days if filed online. Check how long it takes to form an LLC to know about the tentative timelines.
Cost of Utah LLC
LLCs can be formed by spending very less price, considering it does not have a problem of double taxation. Instead, LLCs have a pass-through tax structure. Apart from the mandatory state filing fees, you don’t have to bear additional service charges if you do it yourself. Following are the fees and taxes LLCs in Utah must pay to register and run a business in the state. Forming an LLC is no doubt cost-effective compared to other business structures. However, the fees and charges (tax-deductible) that you must pay to the state, such as name reservation fee, name filing fee, LLC filing fee, and Franchise Tax & Sales Tax (If applicable). Here are the main fees and taxes you must pay while forming your limited liability company in Utah,
| Fees/Tax | Amount to be Paid |
|---|---|
| Name Reservation Fee | $22 |
| Certificate of Organization Fee | $70 |
| LLC Annual Fee | $20 |
| Sales Tax | 4.7% |
In Utah, an LLC name reservation is not mandatory. You can register your LLC name at the time of registering your LLC. If you wish to hold the name for some time without registering your LLC, then you can do that online. Your LLC name will be reserved for 120 days without registering your LLC. It can be done by paying $22.
In Utah, an Annual Report has to be produced every year. It costs $20. Also, the State of Utah requires LLCs to pay a Sales Tax of 4.7% every year. Read our guide on LLC costs in Utah for more information.
Utah Foreign LLC
If you are interested in forming a Foreign LLC in Utah then you need to file the Certificate of Foreign LLC to the Utah Secretary of State. Foreign LLCs allow you to operate your business in more than one state. Along with the Certificate of Foreign LLC, you need to submit some more documents like the Certificate of Good Standing, etc. to the Utah SOS to form your foreign LLC in Utah. To know more in detail, check out our guide on Utah Foreign LLC.
Reasons to Start an LLC in Utah
Utah State, along with providing a business environment, focuses on giving up incentives to LLCs established in the state. These incentives include business funding options and tax liability reductions. Read more on Utah’s classification of LLC tax. These are enough to keep a business running actively. That is why before choosing any state, you must first go through the benefits of this state.
Foreign Trade Zones of Utah
If you are into the foreign trading business and have registered an LLC in Utah, you must know a foreign trade zone incentive program available in the state. Salt lake city, the crossroads of the west, is the main reason this trade zone is formed. It has several benefits for a business. They are as follows-
- There is some exportation requirement which is not easily fulfilled by a business, but the foreign trade zone program can help in fulfilling all the requirements.
- The storage of products is made easy by the foreign trade zone program, and the time constraint is also removed.
- The businesses save double the tariffs that they have to pay on the important products and machinery.
- Businesses have to bear the direct entry and weekly entry fees in other states, but due to the FTZ, this fee is also saved.
- The custom reporting also gets strong and easy with the help of foreign trade zone assistance.
Recycle Market Development Zone(RMDZ)
If we see the census reports published by the US government, then one fact is obvious that the growth of the use of recycled products use in the country has grown around 4 times since 1980. Due to this, the recycling market has seen steep growth. If an entrepreneur has a business idea related to the recycling of products, they can take the help of the RMDZ program. This program will help in the collection, processing, and distribution of the recycling material, which can again be used in manufacturing. Some benefits a Utah LLC will enjoy due to this program are:-
- On the cost that a business spends on machinery, a tax credit of 5% will be provided.
- On the operating expenses, 20% state tax credit is provided up to $2000.
- Discounts of license fees and assistance in some operation processes are also provided.
- Technical assistance is always open from the side of the government in this business.
Enterprise Zone
Before you start an LLC in Utah, you will get the option of choosing the enterprise zone. A business can enjoy a tax credit of around 200−200-200−750 based on a full-time position offered by the company in this zone.
Top Businesses in Utah
Before you form an LLC in Utah, you should gain overall knowledge regarding the state’s economy. You must at least consider the top business industries and their contributions to the state GDP for knowing the environment better.
Farming Businesses
Farming businesses are the most important from the point of view of Utah. People think that Utah is a dry land state, but still, it produces a fair amount of crops and earns good profit from them. Crops like Barley that can tolerate low water levels are grown in the state along with livestock rearing. Around 26,000 people are employed in the sector, contributing 3.5billiondirectlyand3.5 billion directly and 3.5billiondirectlyand10.7 billion through its manufacturing.
Tourism Businesses
The reason behind tourism has become a vast business in the Utah state is its national parks. If we see the number of national parks available in the state, then the state ranks third. The Utah state is home to 7 national parks, 2 national recreational areas, 6 national forests, and various state parks.
In the previous year, the state has catered to around 136,000 tourists, with the help of which the sector can contribute around $9.75 billion to the GDP of Utah.
Mining Businesses
The mining businesses in Utah are attracting many people to immigrate to the state and work in their mines. The mines of Utah, like the Bingham mines, are rich in metals like copper, gold, silver, zinc, and lead. Along with that, there is some fossil fuel deposition found in the state having coal, petroleum, and natural gases. The contribution that is made by the mining businesses to the economy of Utah is 2.1billionfrommetalsandaround2.1 billion from metals and around 2.1billionfrommetalsandaround480 million from coal.
Some of the best small scale businesses that a person can opt for in the state are:-
- Real estate leasing
- Outpatient clinics
- Dental practices
Utah LLC Formation Review
Time needed: 5 minutes
Just to recap, here are the easy steps again when forming an LLC in Utah. Click on the steps in this list to read the full detail.
- Name your Utah LLC
The first thing you must do is to choose a company name, which should be unique, easy to find, and available in the state.
- Choose a Registered Agent
In Utah, it is mandatory to select a registered agent for your LLC. Get a professional Registered Agent from LLC formation services to get things done hassle-free.
- File a Formation Certificate
Filing a formation certificate is necessary when forming an LLC in Utah. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Create an Operating Agreement
An operating agreement is not a strict requirement in Utah but something encouraged when you start an LLC to avoid future conflicts.
- Get an EIN
The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
F.A.Qs
Can I file an LLC in Utah by myself?
If you are a resident of Utah, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.
What is the cost of forming an LLC in Utah in a year?
Apart from the formation fee of 70(domesticLLC)and70 (domestic LLC) and 70(domesticLLC)and70 (foreign LLC), LLC costs in Utah include $20 for Annual Reports every year. LLCs are liable to pay sales tax of 4.85% every year.
How long does it take to get an LLC in Utah?
It takes 1 to 2 business days to get a Utah LLC if you file it online. For the mail filing, it takes 5 to 7 business days to get an LLC. If you hire a professional LLC service, then it might take less than that. We recommend TailorBrands which has impeccable turnaround time.
How to renew my LLC in Utah?
Every year all the LLCs have to submit an Annual Report and pay $20 to the Utah Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.
What is the tax structure for an LLC in Utah?
Generally, for the LLCs, it is a default tax structure. Once you will obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens. Read more on the Utah Classification of LLC Tax.
In Conclusion
When it comes to forming an LLC in Utah, it is much simpler than other business structures. In Utah, starting a small business or a start-up is easy because of its diverse resources. For small budget holders, forming a limited liability company is desirable. The steps explained in this article are generic steps for starting a business in Utah. It is recommended to consult an attorney or service provider.
In Utah, while establishing an LLC, make sure you check with the local bodies like the city council and district office to get updated with local regulations. We recommend ZenBusiness, one of the best LLC services that offers LLC formation at $0 (+ state filing fees). Hiring a professional service would make things easier. From having a registered agent to complying with the local and state government, everything will be smoother than doing things all by yourself.