How to Start an LLC in Utah

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How to Form an LLC in Utah | Complete Guide
A Step-by-Step Guide

How to Form an LLC in Utah

Starting a Limited Liability Company (LLC) in Utah is a smart way to structure your business while protecting your personal assets. This complete guide will walk you through the process of forming your LLC in Utah, covering all the essentials.

What is an LLC?

1

Limited Liability Protection

An LLC (Limited Liability Company) is a type of business entity that gives personal liability protection to its owners (known as members). That is, your home or vehicle assets are usually shielded from any debt of the business or business law suits.

2

Tax Advantages

LLCs also get pass-through taxation, meaning profits get taxed only once on the personal tax return of the members.

3

Management Flexibility

Utah LLCs provide flexibility in management structure, allowing you to choose between member-managed or manager-managed operations to suit your business needs.

Formation Process

Pick a Name for Your Utah LLC

Picking out a name for your LLC is an essential starting point. The name for your business should be distinctive and shouldn't be the name for another company operating within Utah. If you need to check to make sure the name you are thinking of has not already been used, then utilize the Utah Division of Corporations and Commercial Code's online business name search application.

  • Required Words: Your company name should have "Limited Liability Company" or an abbreviation like "LLC," "L.L.C.," "Ltd.," "Co.," or "Company."
  • Prohibited Words: You should avoid the use of the following limited words like "Agency," "Bureau," "Department," or "Commission" since these might be misunderstood to refer to governmental organizations.
  • Name Restrictions: Your name should not have words indicating a link with government organizations (e.g., "State Department" or "FBI").
  • Domain Name: It's also a good idea to find out if your business's domain name is available, even if you don't intend to start a website immediately. This will secure your online presence in the future.

Select a Registered Agent in Utah

All Utah LLCs are required to have a registered agent. A registered agent receives legal documents, tax notices, and official mail on your LLC's behalf. This will help you avoid missing something critical from the state.

Agent Options

You can be your own registered agent, appoint another person in your LLC, or contract with a registered agent service. It's often best to hire a service, particularly if you don't have a physical address in Utah or wish to have the peace of mind of knowing that the state requirements will be met.

Professional Services

Two of the best-rated registered agent services for Utah LLCs are:

Best Utah Registered Agent Services

ZenBusiness

ZenBusiness is recognized for its fast, dependable LLC formation services. You can create your LLC in less than 10 minutes, and they have a registered agent service for $199 per year. They also have a compliance dashboard for quick access to your documents and forms.

  • Low-cost LLC formation and compliance services
  • 5-star rating by thousands of customers
  • Simple-to-use platform

Best for: LLC Formation & Registered Agent Services

Northwest Registered Agent

Northwest has over 20 years of experience in the registered agent industry and offers high-quality service for LLCs in Utah. They provide a secure online portal to access your documents, making it easy to stay on top of all your filing requirements. Their registered agent service is $125 annually.

  • Premium registered agent service
  • A+ rating with the Better Business Bureau
  • Data security is a top priority

Best for: Experienced and Secure Registered Agent Services

File with the Utah Secretary of State

Your last step towards creating your Utah LLC is submitting the Certificate of Organization with the Utah Division of Corporations and Commercial Code. You have options to file both online or via mail.

Filing Fee

The Certificate of Organization filing fee is $70. You may also opt for expedited processing for an additional $75, which accelerates the processing time to 1-2 business days.

Processing Times

If you submit online, it usually takes 24 hours to process. For mail submissions, it will take 3-10 business days. You can accelerate it for a charge of $75, shortening the processing time to 1-2 business days.

Filing Options

  • Online Filing: The fastest approach, and you'll most often hear back in 24 hours.
  • Mail Filing: Fill out the form and send it to the Utah Division of Corporations & Commercial Code.

Mail Filing Address:

Utah Division of Corporations & Commercial Code
PO Box 146705
Salt Lake City, Utah 84114-6705

What to Do Once Your Utah LLC is Organized

After your LLC is formed, there are a few more steps to complete in order to have your business up and running:

Keep Personal and Business Finances Separate

Set up a separate business bank account to safeguard your personal assets. This ensures you keep your personal finances separate from LLC finances.

Hire an Accountant

Having an accountant on board will help you with tax planning so you do not have to pay penalties and you can reduce your tax liability.

Obtain an EIN

You will require an Employer Identification Number (EIN) if your LLC will have employees or if you intend to have a business bank account. The IRS issues EINs at no cost.

Consider Business Insurance

Regardless of whether your business is small or big, business insurance can help shield you from risks like lawsuits or damaged property. If you have employees, you may want to consider getting workers' compensation insurance to cover medical expenses in case employees are injured while working.

FAQs

What is the fee to create an LLC in Utah?

The normal fee to create an LLC in Utah is $70 for filing the Certificate of Organization with the state. If expedited processing is used, there is an extra $75 fee.

Is a Trade Name (DBA) necessary in Utah?

No, you do not have to file a "Doing Business As" (DBA) name unless you intend to do business in a name different from the official name of your LLC. If so, a DBA may be filed with the state.

How long will it take to process my LLC filing in Utah?

If you submit online, it usually takes 24 hours to process. For mail submissions, it will take 3-10 business days. You can accelerate it for a charge of $75, shortening the processing time to 1-2 business days.

Can I create an LLC in Utah if I am not a resident of the state?

Yes, you can still create an LLC in Utah if you are not a resident of the state. Nevertheless, you will have to provide a registered agent with a physical address in Utah to receive official documents on your behalf.

Do I need an Operating Agreement for my Utah LLC?

Though Utah does not necessitate an LLC to have an operating agreement, it's highly advisable. An operating agreement defines the internal framework of your LLC, such as member responsibilities and roles, and can prevent conflicts in the future.

How do I rename my LLC in Utah?

If you do want to rename your LLC after you register it, you will be required to submit an amendment to your Certificate of Organization to the Utah Division of Corporations and Commercial Code. This filing does have a fee attached to it.

Are annual reports mandatory for LLCs in Utah?

Utah does not have an annual report requirement for LLCs. You will, however, need to keep your registered agent information current and keep your LLC in good standing by filing any taxes that may be required and keeping proper records.

Ready to Start Your Utah LLC?

Forming an LLC in Utah is an easy process if you follow these easy steps. With the selection of a unique name, designation of a registered agent, and filing the correct documents, you'll be in business running a legal and compliant business.

Get Started Today
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