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.
Summary
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.&nb