How To Set Up An LLC In Utah (2024 Guide)

There are a few crucial details to know and prepare before moving to the LLC filing phase. This includes local laws that can strongly impact your LLC. Read through the next sections for further details.

Hold Your LLC Business Name for Use

Before attempting to file LLC papers, you should first make sure your desired business name is available. The state of Utah’s Division of Commerce and Commercial Code website offers a business name search engine to help you check.

Once you’re sure the name you want is available, your next step is to submit an Application for Reservation of Business Name form. The fee to hold the name and to renew it is $22. You can reserve a business name in Utah for up to 120 days.

Please note that your company name must contain either the words “limited liability company” or an acceptable abbreviation such as “LLC,” “L.L.C,” “LC,” or “L.C.”

Have a Registered Agent

Getting a registered agent is essential for registering an LLC in Utah; they handle important state and legal documents on behalf of your business. You can act as your own agent in Utah, or even get another LLC member to step into the role. The main requirements are that the registered agent is at least 18 and has a physical address within the state.

Sometimes it’s just not possible to act as your LLC’s agent. In that case, you can hire an individual or company to do so. Pricing tends to fall between $45 and $300, but it’s best to check for exact service charges to determine both upfront and yearly costs.

Buy Web Domain and Set Up Social Media

Once you establish your LLC, you will want to spread the word about your newly launched business. If you have not yet done so, it is best to get a website domain set up as quickly as possible. The same for social media; you should have a frequently updated account on a major platform. Many customers search online for more insight into a business. Working to develop an online presence makes your new LLC easier for customers to find and get to know.

First, complete your Certificate of Organization. The documents must be typed up or completed digitally; they may not be handwritten. Foreign entities wishing to create LLCs must, alternatively, submit a registration statement. The filing fee for both in-state and out-of-state entities forming LLCs is $70. Remittance should be made payable to the state of Utah. It costs $75 to expedite the process.

You may submit documents online, directly to the Division of Corporations and Commercial Code, or mail them to P.O. Box 146705. Salt Lake City, UT 84114-6705. However, forms cannot be submitted via email.

The approval waiting time will vary depending on how you submit your forms. For instance, mailed LLC documents may take up to three weeks to get approved while forms filed online can get processed within two business days.

Even after getting your LLC set up, there are still more details to work out for the benefit of your business. Below are some additional considerations for maintaining the long-term good standing of your company.

Get an Employer Identification Number

Employer identification numbers (EINs) might sometimes be known as a federal EIN (FEIN) or federal tax identification number (FTIN), and they are required for most businesses. Single-member LLCs aren’t obligated; owners can use a Social Security number instead. Even so, EINs are ideal for one-member LLCs because they can help protect your Social Security number from identity theft as well as reserve your privacy. Obtain your own EIN quickly through the IRS website.

Have an LLC Operating Agreement

Writing up an operating agreement for your Utah LLC is a great way to showcase your sincere long-term intentions for the business. Although not required legally, the agreement ultimately determines how the LLC gets run, what member roles or financial obligations will be and even member voting power. These details not only lend credibility to an LLC, but they could prevent much confusion in the event of a lawsuit or other potential legal situations.

Submit an Annual Report

Every year, LLCs must file an annual report to the Utah Division of Corporations & Commercial Code. There is an accompanying $20 fee. These must be submitted every year by the anniversary of formation to keep your LLC in good standing with the state.

Pay Taxes

LLCs are popular in part because they are treated as pass-through tax entities. That means that even though certain LLCs are regarded as separate from your personal assets, you can still include them on your individual tax papers. LLCs in Utah that owners and members treat as corporations should be aware of tax obligations. In Utah, the corporate income tax is a 5% flat tax, with a $100 minimum charge.