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.

Creating a Utah limited liability company (LLC) is relatively easy and requires only a small amount of upfront investment. However, there are other expenses that may need to be planned for, including ongoing business taxes. For example, your LLC may need to apply for a business license in your city or county. It may also need to get an industry-specific license. Some licenses may cost money to apply for, or may need to be renewed annually. Whether or not you need to pay these expenses depends on the type of business you are operating.

To register your LLC in Utah, you will need to file a certificate of organization. This is part of the initial filing process with the Utah Department of Commerce. The certificate of organization will establish your LLC as a valid business entity in Utah, and will authorize your LLC to conduct business. You can file the certificate online, in person, or by mail. The process can take up to five days. A certificate of organization is also required if you are going to open a bank account for your LLC. You can also file for business loans using the certificate of organization.

The Utah Department of Commerce can also answer any questions you have about forming a Utah LLC. You can find links to business licensing websites in the state, and the department has an online resource library with information on how to start and operate a Utah LLC.

You will need to hire a registered agent for your LLC. This agent will be the main contact with the state, and will receive important legal paperwork for your business. A registered agent can be an individual, a company, or a member of your LLC. The registered agent must have a physical address in the state. The registered agent’s job is to keep track of any legal paperwork that may be issued against your LLC.

You will also need to file an annual report. This report will keep the state informed about your LLC’s activities. If you fail to file your annual report by the anniversary date of your formation, you will incur a $10 late fee. However, you can file your report online. There are many companies that offer annual report services. Many companies also offer an expedited service, which takes less than 24 hours. You may want to hire an accountant for your business. An accountant can help you understand how to keep track of your taxes. An accountant’s fees vary based on your business type. A typical accountant’s fee is between $2,000 and $3,000.

You may also need to register for a sales tax license if you sell products. You may also need to register for use tax if you are providing services. These licenses are required for many different types of businesses. The costs will depend on your business type and location. Some business licenses will cost money to apply for and renew, while other licenses will not require any money to be paid.

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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