LLC Cost in Utah – How Much to Pay for an LLC


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Perhaps you are hoping to form a Utah LLC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Utah.

Utah LLC Cost of Filing

Here are the costs involved in forming an LLC in Utah.

Cost of Filing Formation Certificates

The Utah Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Utah Secretary of State

Utah Domestic LLC

  • Online Filing costs $70. 
  • Annual Report filing costs $20
  • Name Reservation fee costs $22
  • By Mail: Fill out the application form, and send it to Utah Division of Corporations & Commercial Code P.O. Box 146705 Salt Lake City, UT 84114. Costs $70.

Utah Foreign LLC

  • Online Filing costs $70.
  • Annual Report filing costs $20
  • Name Reservation fee costs $22
  • By Mail: Fill out the application form, and send it to Utah Division of Corporations & Commercial Code P.O. Box 146705 Salt Lake City, UT 84114. Costs $70.

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

Utah LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in Utah, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

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Business Permits and Licenses 

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Utah Department of Revenue for regulatory boards or agencies requiring licensing. 

Taxes Payable to the Utah Department of Revenue

If you wish to register an LLC in Utah, you will need to pay a number of taxes to the federal as well as Utah governments. Let’s look at the main taxes that are to be paid by LLCs in Utah. There are two types of taxes to be paid to the Utah Department of Revenue:

State Income Tax

You have to pay the state tax on any amount you pay to yourself. The earnings you make shall be taxed through your personal tax return. The standard rate of income tax which is 4.95%, will be applicable & you can apply for all the standard allowances and deductions. 

State Sales & Use Tax 

If you are a seller of goods or you are a service provider, you have to collect tax & then pay it to the Utah Department of Revenue. This State Sales & Use Tax can be collected at the time of purchase.  The Sales & Use Tax varies in different regions, counties, & cities.

The current state sales & use tax rate on LLC in Utah is 4.7%

Federal Self-Employment Tax

Federal Self Employment Tax, also known as Social Security or Medicare tax, is to be paid by all the LLC Business members or managers. This kind of tax is applicable to all the earnings you withdraw from your business. 

The Federal self-employment tax rate in Utah is 15.3 percent, which includes 12.4% for social security & 2.9 for medicare.

Federal Income Tax

In addition to the state income tax, you have to pay the Federal Income tax on all the earnings you make in your Utah LLC. 

The amount of the Federal Income Tax depends upon your earnings, the income tax bracket in which you qualify, the deductions, & the manner/ mode of filing.

Employee & Employer Taxes

If you have a number of employees who draw monthly salaries, then there will be some added Employee-Employer taxes on that. These tax implications vary, depending on various factors, e.g., the amount, number of employees, etc.

Cost Comparison Between States

Utah is surrounded by many states, namely Idaho, Wyoming, Colorado, Arizona, etc. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.

StatesFiling FeeAnnual/Biennial FeeSales Tax
Utah$70$204.7%
Idaho$100Free6%
Wyoming$102$504%
Colorado$50$102.9%
Arizona$50$305.%

On the basis of the kind of industry you LLC operated in, your LLC will be liable to some other taxes & duties. For Example, if your LLC is in the sector of import & export, you have to pay the import-export duty. You should consult with a professional to verify the tax rates or business costs of registering an LLC in Utah.

Other Costs

How Much Does It Cost to Maintain an LLC in Utah

To maintain an LLC in Utah you will need to pay an annual fee of $20 along with state income tax at 4.95%, sales & use tax at 4.7%, and federal taxes.

One of the most important forms to file when setting up an LLC in Utah is the Certificate of Organization. This document officially registers your company with the Secretary of State. Filing this form online or on paper costs $70, but if you want to expedite the process, you can pay an extra $75. Once you have filed the document, you must submit it for acceptance. You may also choose to hire a registered agent. A registered agent service will keep you informed of important deadlines, so you don’t pay late fees.

When you set up an LLC in Utah, you’ll have to pay state and federal taxes. These taxes start with obtaining a federal employer identification number. You’ll also be required to pay sales and use taxes. You’ll also need to file an annual report with the state. These fees are typically one-time payments. If you’re running a business that employs a workforce, you’ll have to pay additional taxes as well.

If you’re setting up an LLC for the first time, you’ll have to pay the State of Utah $22 for an LLC formation. A Registered Agent service can also help you maintain your business documents. You’ll also need to file an Amendment Application with the Department of Commerce for $37. If you’d prefer to file it yourself, you can hire a professional to do it for you.

In Utah, you’ll have to pay for a general state business license, but most cities require this as well. While a general business license is mandatory for many LLCs, it’s an unavoidable expense. An LLC in Utah will also incur other expenses down the line. Some of these expenses are optional. If you’re not sure of the fees, hire a company that specializes in business formation. The company can also handle filing of the Certificate of Organization and provide registered agent services.

An LLC in Utah has several important requirements. The state fees for the formation process are about $70. If you want to change the Registered Agent, you can pay an additional $15. A Utah business search will be required to determine whether your chosen name is available in the state. This process may take anywhere from three to ten days, but if you choose expedited processing, you can complete the entire process in two or three days.

An EIN (Employer Identification Number) is another mandatory requirement for an LLC. An EIN is a nine-digit number that’s assigned to your company by the IRS. It’s also required that your LLC file annual reports with the state. In Utah, you’ll also have to pay a $20 fee every year to renew your license. If you don’t want to pay an extra $20 a year, you can do this for free through Incfile or by filing an application with the Utah Department of Commerce Office of Foreign LLC.

Another expense to consider is the registered agent. Your registered agent is a key point of contact for the state. They receive important documents on your behalf and forward them to your company. Some formation services will include registered agent service for one full year. The cost to hire a registered agent varies, but generally it costs $150 per year. This fee can vary depending on the company. Depending on the company and the services they offer, you might end up paying more than $150 a year.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

In Conclusion

The cost of Utah is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.

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