How to Start an LLC in Utah: If you’re interested in setting up a Utah LLC, you’ve come to the right place. Having an LLC not only protects your personal assets but also is less complicated than other business structures. Utah laws make it easy to establish your LLC in Utah. On this page, You’ll find all the steps that must be taken to ensure that your Utah LLC has been correctly established. We recommend you read the whole article very carefully word by word, don’t miss anything 🙂
On this page, you’ll learn about the following:
- How to Start an LLC in Utah
- After Starting Your Utah LLC
- Utah Foreign LLC
- Utah LLC Formation Review
How to Start an LLC in Utah
An LLC or a 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.
If you wish to start an LLC in Utah, mainly you have to file your Certificate of Formation with the State and pay a filing fee of $70. There are some more steps to follow to get your LLC established in Utah. The following steps explain everything you need to create your LLC in Utah in 2022. Let’s get started!
Step 1: Decide a Name for Your Utah LLC
The very first step while forming an LLC 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:
- Your business name should be available and no other existing business in Utah can have the same name. Perform a name search from the below-mentioned source to be sure your name isn’t taken already.
- “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 Search|
Name Reservation Form – PDF
Name Availability Standards – Guidelines
Utah LLC Name Search – Instructions
|Utah Division of Corporations & Commercial Code|
P.O. Box 146705
Salt Lake City, UT 82114-6705
Fax 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 then you can reserve your LLC name for 120 days. To keep the name, you have to 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 along with the filing fee of $22.
Recommended: You can do name search, get company logo, business domain, website, emails, and a lot more in one place by hiring a professional service. We recommend using –
Tailor Brands – ($49 + State Fees) Online LLC Setup
Tailor Brands offer DIY website templates and incredible logo designs. 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 “.company”, “.xyz” etc. With Tailor Brands, you can get everything you need at an affordable price.
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 a Utah LLC is to appoint a Registered Agent. A registered agent is a person or business entity that will act or work 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. Their business address or the principal address should be in Utah. Most LLC formation companies also provide registered agent services. Below are two great LLC setup services, even if you buy their cheapest plan (normally $49/year) you also get registered agent service and other services at a reasonable price.
These LLC formation services are recommended registered agent services as they are authorized to conduct business in Utah. Some LLC formation services offer standalone Utah registered agent services. You can purchase only Registered Agent services from them without purchasing any other LLC formation services.
A person who is 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 who is responsible for handling all the legal documents.
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.
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 needed to officially register your business with the Secretary of State. It costs $70 to file your formation certificate in Utah. (Read more on LLC cost in Utah).
The Certificate of Formation includes details like the name of the LLC, registered agent’s name, address, employees’ details, and structure of the company (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) to Utah then you need to 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.
How to File by Mail
If you prefer filing real-life forms for your Utah LLC registration, then you can download Domestic LLC Formation Form. Read the form thoroughly, fill it out, and mail it to the following address,
Utah Division of Corporations & Commercial Code
P.O. Box 146705
Salt Lake City, UT 84114
Processing Time: 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. By paying an additional fee, it can be expedited.
Recommended: Online LLC Formation service can provide all these documents in lesser days along with lifetime customer support and 100% accuracy. We recommend using –
Tailor Brands – ($49 + State Fees) Online LLC Setup
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. 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. Like Utah, there are other states that do not have a mandatory rule to file operating agreements. But, this document would be useful if you decide to dissolve Utah LLC later. Hence, having an operating agreement may not be necessary but it is definitely ideal.
Recommended: You can get operating agreement templates at only $29 with TailorBrands. You don’t need to worry about drafting it as they will take care of it on your behalf. We recommend using –
Tailor Brands – ($49 + State Fees) Online LLC Setup
Step 5: Filing a Utah LLC EIN
The Employer Identification Number or, simply, the E.I.N. 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 for that matter.
EIN 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 has to 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 who can 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 –
Tailor Brands – ($49 + State Fees) Online LLC Setup
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.
Congratulation, you are now done with all the necessary steps to form your Utah LLC. If you do it yourself it should take you a long time to properly understand and do all the steps.
However, if you use TailorBrands it should take fewer hours and you always have live chat with expert support for any help you need.
After Starting Your Utah LLC
After forming your LLC, there are still some things that you will need. Take note of the following:
- 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.
Cost of Utah LLC
Forming an LLC in Utah is no doubt more cost-effective than other structures of a business. There are some fees and charges one has to bear to form a Utah LLC. LLCs have pass-through taxation. Hence, your Utah LLC won’t bring you a massive tax burden. Here are some of the fees and taxes are needed to be paid while forming an LLC in Utah,
|Fees/Tax||Amount to be Paid|
|Name Reservation Fee||$22|
|Certificate of Organization Fee||$70|
|LLC Annual Fee||$20|
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.
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-$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 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 $3.5 billion directly and $10.7 billion through its manufacturing.
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.
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 $2.1 billion from metals and around $480 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 like NorthWest Registered Agent 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.
How Fast Can I Form an LLC in Utah
For business formation in Utah, the time taken is 5 to 7 business days through mail. The online filing procedures can be completed within 2 business days.
When it comes to forming a new business, it is a good idea to follow the required steps as quickly as possible. One of the most important documents is the Certificate of Organization, also called the Foreign Registration Statement. Failure to file this form on time will result in penalties of $10 per day or administrative dissolution. In addition to penalties, late filings can also make your business difficult to qualify for foreign qualification in other states.
In order to maintain a positive reputation, your LLC in Utah must submit annual reports to the state. This paperwork is time consuming and can easily be overlooked, resulting in an accidental lapse. Fortunately, there are companies that can help you stay on top of these annual reports by automatically tracking and filing them for you. With Managed Annual Report Service, you can avoid all the hassles of filing these reports and focus on the most important aspects of running your business.
An EIN is an important part of your LLC’s paperwork. It is a nine-digit number assigned to your LLC by the Internal Revenue Service. Obtaining an EIN is a legal requirement. It will serve as your business’s tax identification number. You can obtain an EIN online or through the mail. You’ll also need to obtain a business property insurance policy. This will cover any damages you may have incurred due to an accident or other business-related incident.
In order to operate your business, you must have a separate business bank account. This will allow you to keep business expenses separate from personal expenses and will also help you with taxation. Besides, opening a separate account for your business is crucial in liability protection. You should open a business bank account in your name and have the members sign a banking resolution. This will allow the LLC to separate its business funds from the personal funds of the members.
When forming your Utah LLC, you must choose a business name. Make sure the name you have chosen is available in Utah. You must also choose a business name that is distinct from any existing entity in the state. Fortunately, the Division of Corporations and Commercial Code maintains a database with available names. Check out the available business names before making the final decision. If you have an idea for a name that you like, you’re halfway there.
After the registration of your LLC name, you must file the necessary documents. Then, you need to file the Certificate of Organization in Utah. In most states, this paperwork is called the Articles of Organization. There are several ways you can file these documents with the Department of Commerce, including online filing. If you want to file online, you’ll need to pay a fee of $70. However, you can also hire a registered agent to serve as your agent.
One of the easiest ways to form an LLC in Utah is to use a website that provides a step-by-step guide. This is an easy way to form a limited liability company without hiring an attorney. An LLC is a great choice for small businesses because it’s cheap and easy to start. There are many benefits to forming an LLC in Utah, including the fact that it is a relatively simple process.
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.
Apart from the formation fee of $70 (domestic LLC) and $70 (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.
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 Tailor Brands which has impeccable turnaround time.
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.
LLCs are easier to establish than other business structures. Small businesses, especially start-ups can easily start their LLCs in Utah at a bare minimum cost. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. The formation of limited liability companies requires much lesser documents and legal processes. Share your queries with us, and leave a comment below.