Utah, like many other states, is experiencing a significant increase in the number of business formations. It seems like now is a good time to start a limited liability company in Utah (LLC).
Although the process is similar to that of other states, creating a Utah LLC is easy. This guide will help you get your new business started.
Before You Start Your Utah LLC
Before you move to the LLC filing phase, there are some important details that you should know. These include local laws that can have a significant impact on your LLC. For more information, please refer to the following sections.
Register Your LLC Business Name
Before you file LLC papers, make sure that your business name is available. Utah’s Division of Commerce and Commercial Code website has a search engine for business names to assist you in checking.
After you are certain that the name you desire is available, you can submit an Application to Reservation of Business Name. To hold the name or renew it, you will need to pay $22. Utah allows you to reserve a business name for up 120 days.
Your company name must include the words “limited liability corporation” or an acceptable abbreviation like “LLC,” L.L.C,” LC,” or “L.C.”
Appoint a Registered Agent
Registering an LLC in Utah requires the assistance of a registered agent . They will handle all legal and state documents for your company. You can be your own agent in Utah or have another LLC member take over. The only requirements for registering agents are that they be at least 18 years old and have a physical address in the state.
Sometimes, it is impossible to act as the agent for your LLC. You can hire a company or individual to act as your LLC’s agent in this case. Prices tend to be between $45-$300, but it is best to verify for exact service costs to determine upfront and annual costs.
Get a web domain and set up social media
After you have established your LLC, it is important to spread the word about the newly launched business. It is a good idea to set up a website domain as soon as you can. Social media is the same. You should have a regularly updated account on major platforms. Customers often search online to find out more about a company. Your new LLC will be easier to find and to get to know customers if it has an online presence.
Set up your LLC in Utah.
First, create your Certificate of Organization. These documents cannot be written or typed. A registration statement must be submitted by foreign entities who wish to form LLCs. For both out-of-state and in-state entities that form LLCs, the filing fee is $70. The state of Utah should receive the payment. The expedited process costs $75
You can submit documents online to the Division of Corporations and Commercial Code or by mail to P.O. Box 146705 You can submit documents online, directly to the Division of Corporations and Commercial Code or mail them to P.O. Box 146705. Salt Lake City, UT 841146705. But, you cannot submit forms via email.
Your submission method will affect the time it takes to get approval. It can take up to three weeks for mailed LLC documents to be approved, while online forms can be processed in as little as two business days.
What to do after establishing your LLC in Utah
There are many details that you need to consider even after your LLC is set up. Here are some other considerations to ensure your company’s long-term success.
Register for an Employer Identification number
Sometimes, EINs (employer identification numbers) are also known as federal EINs or federal tax ID numbers (FTINs), and they’re required by most businesses. Owners can also use their Social Security numbers to apply for single-member LLCs. EINs can be used by one-member LLCs to protect your Social Security number and privacy. You can quickly obtain your IRS EIN through the IRS Website .
Make sure you have an LLC Operating Agreement
An operating agreement for your Utah LLC can be a great way for you to show your long-term plans for the company. The agreement, although not legally required, will determine how the LLC is run, who the members are and what their financial obligations will be, as well as the voting rights of the members. These details are important to give credibility to the LLC and could help avoid confusion in the case of a lawsuit.
Send an annual report
Each year, LLCs are required to file an annual report with the Utah Division of Corporations & Commercial Code. An additional $20 fee is required. To keep your LLC in good standing, you must submit them each year by the anniversary date of its formation.
Because LLCs can be treated as pass-through tax entities, they are very popular. This means that you can include certain LLCs on your individual tax papers, even though they are separate from your personal assets. Utah LLCs that members and owners treat as corporations must be aware of their tax obligations. Utah’s corporate income tax is flat at 5% with a $100 minimum.
Most Frequently Asked Questions
What is the cost of a Utah LLC?
When filing LLC documents, both domestic and international entities must pay $70.
What can I do to correct errors made in forming my Utah LLC LLC?
You can correct any errors in your LLC paperwork by filing an Article of Correction. This process costs $12.
Is it required for Utah LLCs to file annual reports
Yes, LLCs must file annual reports in Utah and pay a $20 fee.
Can I become my own registered agent for Utah?
Utah permits LLC owners and members to be registered agents. However, they must be at least 18 years old and have a physical address in the state.
How do I dissolve my Utah LLC
Send a completed Statement of Dissolution (PDF) to Utah’s Division of Corporations & Commercial Code. Before you file a Statement of Dissolution, make sure that all outstanding taxes and debts have been paid.