How to Start an LLC in Utah
Register your Utah LLC (limited liability company) with us. We will make the Utah LLC registration easy and hassle free for you.
For more information on how to form an LLC in any state, see the article How to Form an LLC.
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Learn about Utah LLC formation, including information on Registered Agents, naming rules, business licenses, and more.
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Starting a new business involves deciding on the business entity that will be used by the company. Forming an LLC is often the best option for businesses with more than one founding member for a number of reasons.
An LLC provides legal protection for business owners by separating their personal assets from their business debts. In addition, LLCs often have a lower tax rate than corporations.
It is fairly easy to form an LLC in Utah, with a few minor differences compared to other states. Follow the steps below to form an LLC in Utah, and read the checklist at the bottom to familiarize yourself with the state’s legal and financial requirements for LLCs.
Creating an LLC in Utah
A limited liability company (LLC) offers many benefits to small businesses, including liability protection and tax advantages.
A Limited Liability Company LLC must be formed in Utah by filing a Certificate of Organization with the State of Utah and paying the $70 filing fee.
However, you’ll first need to choose a name and registered agent for your Utah LLC. The formation of an LLC may take up to 2 business days if you file online (or 3 – 7 business days if you file by mail).
An LLC can be easily formed in Utah. Our step-by-step guide on How to Start an LLC in Colorado will help you get started today. Find out more about LLCs and their benefits in our What is an LLC guide.
Step 1. Choose a Name for Your LLC Utah
Creating an LLC in Utah requires you to choose a business name before you can file a Certificate of Organization. Be sure that your business name complies with the Utah naming requirements and can be searched by potential customers.
- Utah law requires an LLC name to contain the words “Limited Liability Company” or “Limited Company,” or the abbreviations “Ltd.,” “LLC,” or “LC.” “Limited” may be abbreviated as “Ltd.” or “LTD,” and “Company” as “Co.”
- It is not acceptable for your Utah LLC to have words associated with a government agency (FBI, Treasury, State Department, etc.).
- You should avoid using words or abbreviations that may make your LLC Utah appear to be a different type of entity, such as “LP” or “corporation”.
- There may be additional documentation and licensure paperwork required for certain restricted words (bank, lawyer, attorney, credit union, etc.).
- Check the state’s business name database to ensure the name you want is not already taken(including businesses no longer in operation)
See a complete list of Utah’ naming rules here.
Check URL availability: You are likely to need a web page even if you don’t think you do. Buying your domain name now will at least give you the option of having one in the future. It’s a good idea to check the URL availability before finalizing your Utah LLC name.
By filing an Application for Reservation of Business Name with the Utah Division of Corporations, you can reserve a name for 120 days. The reservation can be submitted either online or by mail through the Utah Online Business Registration website.
All sole proprietorships, general partnerships, corporations, limited liability companies (LLCs), limited partnerships (LPs), limited liability partnerships (LLPs), and out-of-state companies that conduct business in Utah under a name other than their legal name are required to file a DBA. To learn more about DBAs, read our “What does DBA mean” Guide.
An LLC stands for a Limited Liability Company. A simple business structure that is more flexible and offers many of the same benefits as a traditional corporation. For more information, see “What is a Limited Liability Company?”.
Step 2: Appoint Your Registered Agent in Utah
Your next step in forming an LLC in Utah is to appoint a Registered Agent, an individual or company authorized to receive legal and state mail on your behalf.
All Utah LLCs must have a registered agent. Please include your registered agent’s name and address on your Certificate of Organization.
Registered Agent Requirements in Utah
To comply with Utah law, your LLC’s registered agent must be a resident or business entity that maintains a physical address in Utah. The “registered address” cannot be a P.O. box. It must be a real physical address that can be visited in person.
Further, in Utah, your registered agent need to be agree to perform this role and sign a form confirming their consent. Consent statements should include the following:
- Written confirmation that the person designated consents to serve as the LLC’s registered agent
- The name of your Utah LLC and the person designated as your registered agent
- Registered agent’s signature
- Date of execution
Although you do not have to submit this form to the Secretary of State, your business must record it. Learn more about Utah Registered Agents by reading our full guide.
A Registered Agent must be a Utah resident or a corporation authorized to do business in Utah, such as a registered agent service. You have the option of electing someone from your company, including yourself.
It’s a simple process to change your LLC’s registered agent, but it’s critical to do it correctly to avoid compliance issues. A registered agent is someone or a company that receives and sends legal documents on behalf of your LLC. After you’ve established your LLC, you can change your registered agent.
Are You looking for a Registered Agent?
Wise Business Plans offers a free year of registered agent service when forming an LLC in Utah.
Step 3.Prepare and File Certificate of Organization
To create a Utah LLC, you will need to file Certificate of Organization with the Utah Division of Corporations. You may apply online, by mail, or in person.
There is a $70 filing fee. You must send the original and a copy of your certificate if you file by mail.
You will receive a duplicate form back from the state once it receives your documents.
If you choose one of our business formation services, we can handle this step for you.
The following information is typically required to create a Certificate of Organization:
- Your LLC name and principal place of business.
- Name, address, and signature of the LLC’s registered agent
- Decide whether your Utah LLC will be member-managed or manager-managed. Indicate the names and addresses of each member and manager.
- The reason for forming the LLC in Utah.
- Name and address of the LLC’s organizer.
- The effective date of the certificate,
- The person forming the LLC must sign the Certificate.
Foreign LLCs: You must file a Foreign Registration Statement (Foreign Limited Liability Company) with the Utah Division of Corporations and Commercial Code to register your business in Utah (DCCC).
The DCC website has a copy of the application form available for download.
A filing fee of $70 also applies to this form, and you need to attach your state’s certificate of good standing.
Two Ways to File the Certificate of Organization
The 1st option is:
Online filing through the Utah Department of State
The 2nd option is:
Filing the Certificate of Organization by Mail
Address to Mail
There is a state filing fee of $70 payable to the Utah Department of State. (nonrefundable)
Utah Division of Corporations & Commercial Code
P.O. Box 146705
Salt Lake City, UT 84114
In a member-managed LLC, the members (owners) take on the business’s daily responsibilities. Manager-managed LLCs are managed by managers who are elected by the members. Those who manage your LLC will have the authority to do a wide range of tasks-from hiring staff to opening bank accounts.
The formation of an LLC may take up to 2 business days if you file online (or 2-3 weeks if you file by mail).
All LLCs formed outside of Utah must register with the Utah Division of Corporations in order to do business in the state. For service of process, foreign LLCs must appoint a registered agent. The agent could be a Utah resident or a company with a Utah business license.
Fill out a Foreign Registration Statement to get started. The application can be submitted either online or by mail through the Utah Online Business Registration website.
Step 4. Get a Certificate From the State
Upon filing your Certificate of Organization, the secretary of state will review it. As soon as the Certificate of Organization is approved, the LLC becomes a legal entity.
By obtaining this certificate, LLCs will be able to obtain an Employer Identification Number (EIN), licenses, and business accounts.
Step 5. Write an Utah LLC Operating Agreement
An operating agreement is a legally-binding document that sets out how your LLC will operate, from the voting process to mergers.
Operating agreements are not required in Utah, but they are an essential part of your business.
Written operating agreements are helpful for different reasons, including resolving disputes over financial agreements and other potential litigation.
The LLC declaration can prove that your LLC is a separate entity, which can help preserve your limited liability.
An operating agreement ensures that all business owners are on the same page and reduces the possibility of future conflict.
How should an operating agreement be drafted?
The operating agreement should detail the LLC’s overall business purpose and other important matters, such as how the company will be taxed and how new members will be accepted. Legal agreements can clarify several important concerns, such as:
- Who makes decisions for the company, especially those who decide if partners disagree.
- Who is responsible for different aspects of the business as well as for strategic decisions.
- If a partner leaves the company, what will happen to their ownership interests in the corporation.
- The members and their contributions
- How profits and losses will be divided
- Procedures for admitting new members and removing outgoing members
In Utah, you can include just about anything in your operating agreement, as long as it doesn’t violate the state law or the Certificate of Organization.
Yes. A single-member LLC must have an operating agreement in order to open a bank account and maintain limited liability.
Not at all. It is a document you should keep on file for future reference. Although many states do legally require LLCs to have operating agreements in place, not all do so.
Step 6. Get an EIN for Your Utah LLC
Basically, an employer identification number (EIN) is a social security number for your LLC in Utah.
To identify your LLC for tax purposes, the Internal Revenue Service assigns a nine-digit Employer Identification Number (EIN). You can apply for your EIN either by mail or online.
An EIN is used for the following purposes:
- Manage state and federal taxes
- Create a business bank account
- Hire employees
Get an EIN Number in Utah
Getting an EIN number is easy and free, There are two ways to get an EIN number in Utah.
The 1st option is:
Apply online for an EIN from the IRS
The 2nd option is:
Get an EIN by Mail or Fax
Address to Mail
Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
A one-member LLC in Utah will only need an EIN if it has employees. If you’re the sole proprietor of your LLC and don’t have any employees, you can usually skip this step. If you decide to have your LLC taxed as a corporation using form 8832, you’ll also need an EIN.
A tax classification will be discussed with you when you obtain an EIN. In most cases, LLCs choose the default status.
Some LLCs can reduce their federal tax obligation by electing S corporation status. Consult with a local accountant to find out which option is best for you.
When a sole proprietorship changes to an LLC, it must get a new EIN from the IRS.
You can get an EIN from the IRS for free. Getting an EIN is straightforward and may be done online or by postal mail.
Step 7. File Annual Report (Optional)
The Utah Division of Corporations requires all Utah LLCs and foreign LLCs authorized to do business in the state to file an Annual Renewal (the equivalent of an annual report) and pay a $20 fee. The renewal is due one year after your LLC’s initial registration and then every year after that.
The Division of Corporations sends a renewal notice to your LLC’s registered agent 60 days before the anniversary date.
This form can be filled out and submitted online.
Automatic Dissolution Should Be Avoided: If a limited liability company (LLC) fails to submit one or more state forms, it may be subject to fines and even automatic dissolution. If this happens, the LLC’s owners will lose their limited liability protection.
A competent registered agent service can help you avoid this outcome by notifying you of approaching filing deadlines and submitting reports on your behalf.
Are you Looking for Utah LLC Formation Service?
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What to do After Forming Your Utah LLC
Keep your personal and business assets separate
Your personal assets (such as your home, car, and other valuables) may be at risk when your Utah LLC issued if they are mixed with your business accounts.
Here are some steps you can take to protect your LLC in Utah:
1. Create a Business Plan:
If you decide that a Utah LLC will be a good choice for your business in Utah, your next step is to create a business plan (although it is not required), so that you have a roadmap for what you will do and how you will accomplish it.
Free: Business Plans Examples
Do you need help creating a business plan? Check out these six free, proven business plan examples from different industries to help you write your own.
2. Open a Business Bank Account
Separate business bank accounts are not legally required for Utah LLCs. However, we still recommend opening a separate business bank account to maintain your Utah LLC’s legal protections.
Keeping separate bank accounts will help you maintain the legal distinction between your Utah LLC and you (the owner).
It is essential for small business owners to partner with the right bank.
Recommended: Check out our business bank account page to learn which banks offer the best business check accounts, ATM access, interest-bearing accounts, and online and mobile banking options for businesses.
3. Obtaining a business credit card:
- Allows you to separate personal and business expenses.
- Develops your Utah company’s credit history, which can be helpful to raise capital (e.g., small business loans) later.
- This can help categorize and separate all your Utah business expenses for tax purposes at the end of the year.
- It also helps build your business credit score, which is crucial for obtaining a business loan or a line of credit in the future.
4. Hiring a business accountant:
- It prevents your Utah business from overpaying taxes while preventing penalties, fines, and other costly tax mistakes.
- Gives you more time to focus on your growing business by simplifying bookkeeping and payroll.
- Manage your business’s funding more effectively. Find out where extra profit or loss can be made
Getting Business Insurance for Your Utah LLC
You can manage risks and grow your Utah LLC with business insurance. Here are the most common types:
- General liability insurance protects your Utah business from lawsuits. Most small businesses purchase general liability coverage.
- Professional liability insurance protects professionals and businesses from claims of negligence from their clients or customers. Liability insurance typically covers negligence, copyright infringement, personal injury, and more.
- Workers’ compensation insurance covers illnesses, injuries, and deaths resulting from a worker’s work.
Pro Tips: Would you like to know how much small business insurance costs? Here is a comprehensive article about 10 types of small business insurance and how to choose the right one.
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Let us help you with your Utah business insurance needs.
- General business liability insurance
- Medical insurance
- Term life insurance
- Workers’ Comp
- Surety bonds
- Commercial auto
Create a Professional Website for Your Utah Business
A website is an important step in legitimizing your Utah business. You are missing out on a large percentage of potential customers and revenue if you don’t have a website, even if your business is too small or in an offline industry.
More than 90% of consumers begin their search for products and services online. If you don’t have a website that is ready to welcome your customers, then they will simply find your competitors.
Here are the main reasons why you shouldn’t delay building your business website:
- Every respectable firm in Utah has a website. When it comes to getting your firm online, size or sector isn’t a concern.
- Creating a basic website has never been easier, thanks to website builder tools like the GoDaddy Website Builder. To design a website, you don’t need to hire a web designer or developer.
Recommended: If you want to enhance your conversion rates and maximize revenue in order to help expand your Utah business and meet objectives, you should always hire a professional business website design company to build your business website.
Wise Business Plans is a leading web design company in Utah, We have created over 2000 + websites across 20 countries for our clients but we are physically based in 7 major cities in the United States including Alabama web design, Pennsylvania, Las Vegas, Colorado Springs, Iowa, Michigan and San Diego.
Utah LLC FAQs
The cost of forming an LLC in Utah is $70. This is the filing fee for the Utah Department of Commerce to register your LLC documents.
The most noticeable benefit of creating an LLC in Utah is that it protects your personal belongings by restricting the company’s liability to the resources of the business. The Your Utah LLC will typically protect your personal assets from claims against the firm, including lawsuits, because
The formation of an LLC may take up to 2 business days if you file online (or 2-3 weeks if you file by mail).
To amend your Limited Liability Company in Utah, send the completed Articles of Amendment to Articles of Organization form to the Division of Corporations & Commercial Code by mail, fax, or in person, along with the non-refundable processing fee.
In Utah, there are four steps to dissolve a limited liability company (LLC).
Step 1. Organize a meeting of the members and pass a resolution dissolving the corporation.
Step 2. Annual and other required reports must be filed with the state agency.
Step 3. Pay off all of the company’s outstanding business debts.
Step 4. Pay all of the company’s outstanding taxes and fees.
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