The Great Salt Lake State Park. Skiing. Bonneville salt flats and speedway. Utah is known for many things including its superb mountain ranges and also as a place where businesses of all shapes and sizes set up and tap into the state’s young and educated population as well as a flat sales tax of just 5%.
So you’ve made the decision and are wondering how to incorporate an LLC in Utah. But what should we do next? And how much will it set you back? We’ve outlined all of the steps you’ll need to follow, as well as the cost and documents needed, below.
In addition to its many other advantages, a limited liability corporation (LLC) provides small enterprises with protection from legal responsibility and favorable tax treatment. Follow these easy steps to get your Utah limited liability company up and going after you’ve decided that an LLC is the most suitable form of business organization for your requirements.
Note that you have the option of forming the limited liability company (LLC) yourself, or you may hire a professional company formation agency to do all of the legwork on your behalf.
1. Creating Your Utah LLC name
It is essential to be aware that the name you choose for your company must be in accordance with all applicable federal and state laws and regulations. The following must be included in the name of your Utah limited liability company:
- The name of a limited liability company (LLC) has to be able to be differentiated from the names of other business organizations already registered with the Utah Division of Corporations and Commercial Code.
- One of the following terms or abbreviations must be used in the name of a limited liability company (LLC): “Limited Liability Company”, “Limited Company”, “LLC”, “L.L.C. “, “LC”, or “L.C.”
By submitting an Application for Reservation of Business Name to the Utah Division of Corporations, you will have the ability to hold a name for a period of one hundred and twenty days.
Any online through the Utah Online Business Registration website or by mail, reservations may be submitted in either format.
2. Pick your Registered Agent
A registered agent in Utah is required of every limited liability company (LLC) operating in the state. If the limited liability company (LLC) is taken to court, this refers to a person or company that has agreed to accept service of process on its behalf.
The Registered Agent might either be a resident of Utah or a commercial organization that is permitted to conduct operations in the state. It is required that the Registered Agent have a real, physical address in the state of Utah.
What role does a Registered Agent play?
A Registered Agent receives tax forms, legal paperwork, lawsuit notices, and government communication on your business’s behalf. Consider the role of your registered agent as that of the point of contact for your company with the state.
Who serves as a Registered Agent?
A Registered Agent is required to be either a person who lives in Utah on a permanent basis or a company that is permitted to operate inside the state of Utah and acts in the capacity of a Registered Agent service. You have the option of selecting anybody who works for the organization, including yourself.
3. Submit an Application for a Certificate of Organization
The Certificate of Organization lays forth fundamental information regarding your LLC. This document, which in certain states is referred to as Articles of Organization, is used to formally register your company with the state, thus it is critical that all of the information be accurate.
What information should be included on a Certificate of Organization?
When completing the Certificate of Organization for your Utah LLC, you are required to give the following information:
- That should be the name of your limited liability company.
- The major location of your company’s operations.
- The name and street address of your designated agent to receive official mail on your behalf
- Organizer signature
- The names and addresses of those who serve as members or administrators of your organization (optional)
- If you provide an annual report to the Division of Corporations, you must include the name and address of at least one manager, member, or governing person; however, it is not essential that you include the names and addresses of all members and/or managers.
- The length of time that the legal entity will be in existence (optional)
- The reason for the existence of the corporate entity (optional)
Filing Your Organization’s Certificate of Organization
You will submit your completed Certificate of Organization to the Division of Corporations and Commercial Code under the Utah Department of Commerce, and you will pay the state filing fee of $54 at that time.
You have the option of filing in person, via the mail, by fax, or online. Cash, credit/debit cards, checks, and money orders written out to “State of Utah” are all valid forms of payment. Cash payments are preferred.
Creating an online account
You may create an account on the Utah.gov OneStop Business Registration System if you intend to submit the documentation required for your company’s establishment using an online portal.
You are able to register your new company with the Utah Department of Commerce and Workforce Services by using Utah’s OneStop Business Registration System.
- Tax Commission of the State
- Dept of Commerce
- Dept of Workforce Services
In addition, a large number of Utah communities have enrolled with OneStop to provide municipal business licenses to local entrepreneurs.
Take note that the login process for the OneStop Business Registration has just been switched over to the new system known as UtahID.
If you currently have an account with OneStop Business Registration, all you need to do to establish a UtahID account is register a new account but use the same email address that you used for OneStop. The new UtahID may also be used to log into the computer systems utilized by other Utah state agencies.
4. Obtain a Certificate From the Government of Your State
After the formation paperwork of the LLC has been submitted and authorized, the state will send you a certificate that proves the LLC’s official existence in response to a written request for a copy together with the appropriate amount of postage.
With this certificate, the limited liability company will be able to apply for and get an Employer Identification Number (EIN), as well as acquire business permits and open business bank accounts such as Bluevine or Novo.
5. Draft an Operating Agreement for Your Company
Even while establishing a detailed operating agreement for an LLC is not a legally required stage in the process of incorporating a limited liability company in Utah, it is highly suggested for all new limited liability firms.
The following items should be included in the operating agreement:
- Describe the business structure of the limited liability company.
- Determine the specific duties and commitments that each member of the limited liability company (LLC) has, and lay out the operational structure of the LLC.
Significant legal and logistical challenges might await a limited liability company (LLC) in the absence of an operating agreement that defines the precise responsibilities of its members.
6. Obtain a number that identifies you as an employer (EIN)
A number of limited liability companies (LLCs) will be required to get a Federal Employer Identification Number (EIN), often known as a tax ID number.
An Employer Identification Number (EIN) is a nine-digit number that identifies your company to the Internal Revenue Service. You need an EIN in order to pay federal employer taxes, open a bank account (in most situations), or recruit staff.
On the website of the Internal Revenue Service (IRS), which is accessible without charge, you may check to see whether you need an EIN and submit an application for one online.
Single-member limited liability companies, which are an exemption to the rule that most firms are required to acquire an EIN, may instead use the owner’s Social Security number.
Your limited liability company (LLC) may be required to get a Utah business license in addition to a local business permit. This need is conditional on the location of your LLC inside the state as well as the type of business it conducts.
For instance, if you sell things in the state of Utah, you could be required to collect sales tax and have a license for collecting sales tax.
7. Submitting your Annual Company Renewals
An Annual Renewal, which is the equivalent of an annual report, must be filed with the Utah Division of Corporations by every Utah limited liability company and every foreign limited liability company that is authorized to conduct business in the state. There is a fee of twenty dollars associated with this filing.
The first registration of your limited liability company is good for one year, following which the renewal must be submitted every year. The Division of Corporations will send a notice of renewal to the registered agent of your limited liability company sixty days before the anniversary date of the LLC.
You have the option of filing the report electronically or accessing a blank renewal form on the website of the Division of Corporations.
This following contains more information on how to submit an annual report for an LLC.
Fees and Next Steps?
The first formation fee for a limited liability company in Utah is $70.00. This is the fee that must be paid in order to apply for a Certificate of Organization in the state of Utah.
The Utah Division of Corporations receives the submitted documents, including the Certificate of Organization and the filing fee of $70. And as soon as the state gives its stamp of approval to the necessary documentation, your limited liability company will officially be formed.
In order to legally do business in Utah using a limited liability company (LLC) that was founded in another state, you will need to register the out-of-state Limited company in Utah. This kind of business is referred to as a Foreign LLC company.
What happens next?
When you register a limited liability company (LLC), you establish a legal basis upon which to operate your firm. Companies should make it a priority to maintain their limited liability company in compliance with state regulations and in an active position on the state’s website.
In the state of Utah, a limited liability company (LLC) is obliged to submit an annual report on the anniversary of the day it was incorporated. There is a possibility that the LLC may need to make tax payments on a quarterly basis. In addition to this, you need to have a registered agent for your company.
In addition, having a registered limited liability company enables you to perform the following:
- Obtain any permissions or licenses that are required to run your business, such as those issued by the health department, the zoning department, the department of home occupations, the department of professional licensing, and so on. Some states need a seller’s permission to conduct sales
- Register your company with the department of revenue in your state.
- Establish bank accounts for your company.
- Create a credit card account for your company.
- Invest in insurance coverage for your company.
- Create a trademark to protect both your company’s name and its logo.
LLC company formation through a services firm or DIY?
To establish a limited liability company (LLC), you are not required by law to consult a lawyer. The majority of states enable the establishment of LLCs via the process of registering the business entity on the website of the secretary of state and with the Internal Revenue Service (IRS).
If you are not acquainted with the process of forming an LLC, your best bet may be to bring in a professional LLC formations service so that you can be certain that the creation will go smoothly and quickly.
When entrepreneurs start a new firm, they may save startup costs and save valuable time by using a professional agency that specializes in company forms. They are able to take care of the things that you perhaps do not have time to think about for a price ranging from fifty dollars to more than five hundred dollars, and these things include:
- Creating an LLC operating agreement to describe who, what, when, where, why, and how (required in some states).
- putting together articles of incorporation that identify the management of the LLC, the registration agent, and the date the company was formed.
- Taking up the role of registered agent for your firm.
- Keeping careful records in the event that there are investigations or litigation.
- Payment of filing fees and registration with the appropriate parties.
- Registering the name of your firm and ensuring that the name you choose for your limited liability company is accessible.
- Finishing up and turning in all of the necessary legal and formation documentation.
How difficult is it to start an LLC in Utah?
Setting up an LLC in Utah is easy, needing a Certificate of Organization and a $70 registration cost. The legal document known as the Certificate of Organization is the piece of paper responsible for the formal establishment of your Utah limited liability corporation.
What is the annual fee to form a limited liability company in Utah?
When submitting paperwork to form an LLC, a charge of $70 must be paid by both local and international firms.
How does Utah tax limited liability companies?
Utah’s corporate income tax is 5% of taxable income, with a $100 minimum. If your LLC is taxed as a corporation, submit Form TC-20 to the Utah State Tax Commission (TC).
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