How to Form a Utah LLC

By Bazal Razzaq

Chief Editor

Updated: September 25, 2023, 12:30pm

Editorial Note: We earn a commission if you use the services recommended on this page. Commissions do not affect our opinions or recommendations.

Utah LLC

The 45th state in the United States of America, Utah welcomes people for business. The Beehive State offers the opportunity to form an LLC at an effective price of $54 to users who want to run a Limited Liability Company (LLC). You can apply for the same online and over postal mail. The home of Bryce Canyon National Park helps you become the best by being a valuable member of society as you contribute to the State’s business and provide job opportunities to various people in the state. Here’s how you can start and get ahead of the competition to make your LLC the best-performing business in your field of work:

#1 Find The Name For Your Utah LLC

First things first, let’s start setting up your business by finalizing a name for your business. If you want to start an LLC, then the same must reflect in your business name. Kindly ensure that your business name is not confused with a regulatory body or federal/state.

If you have a specific business skill, then additional documents would be required to confirm the same. You must run your business through the Business Name Conventions and Policies guidelines applicable in the state of Utah and perform a name search to ensure that you don’t have another business using the same name in the State.

Now that you have done the aforementioned, the next step is to look for an online domain so that you can redirect people to the online space and showcase your work to others anytime, and at any place.

#2 Get A Utah Registered Agent

You need to have a custodian for your business who will take care of your LLC details in the State of Utah. If possible, you can pick any member of your team to manage the details for you. This business/individual would be responsible for any tax forms, legal documents, and other communication management for your LLC.

The registered agent must be a resident of Utah or a corporation that runs its business in the state. Now, that you have a name, an online domain, and a Utah Registered Agent, let’s get down to the next steps that would be required to create a business of value.

#3 Apply For Utah LLC Certificate Of Organization

Your organization has followed the first step towards the formation, and now it’s time for you to step ahead and apply for a Utah LLC Certificate of Organization with the Utah Department of Commerce. You can apply online or offline by paying a non-refundable amount of $54. In the case of an offline application, you can send details over postal mail to the appended address:

Utah Division of Corporations & Commercial Code

P.O. Box 146705

Salt Lake City, UT 84114

In the event of taking your business outside of Utah, or planning to open up the business’ branches outside the state, you would need to apply as a foreign LLC to take care of the business requirements.

#4 Request For A Utah LLC Operating Agreement

Utah doesn’t require an operating agreement, but having one always adds value to your requirement as it avoids conflict among members in the future run. The operating agreement is an official document that confirms the proceedings of the business and has the process and procedures of the business in the right standing.

The operating agreement makes way for everyone to express their views as it is an official document that runs the proceedings. You can always keep everything handy with this, and that’s the best part of formulating an operating agreement.

#5 Focus On Fetching A Utah LLC Employer Identification Number

The Internal Revenue Service (IRS) provides an Employer Identification Number (EIN) to every LLC for free. You don’t need to have a Social Security Number (SSN) to apply or get an EIN. This number comes in handy to find out about the business and track the business’ tax reporting.

The EIN would be important to open a business bank account for the company in the State of Utah. It is also important to track the federal and state tax details of the business in the state. You would require it to get new people on board in the system. EIN can be obtained by applying for the same online or offline. In case you are applying for the same offline, you can mail the details to the appended address:

Internal Revenue Service

Attn: EIN Operation

Cincinnati, OH 45999

Fax: (855) 641-6935

#6 Share An Annual Report For Your LLC

Utah has a different filing process than other states. You need to file an online annual report by or before the LLC founding date. The charge to file the annual report in the state of Utah is $13.

In case you are late in filing your annual report, then you will incur a penalty fee of $30. If you are unable to file an annual report then the governing bodies can dissolve your LLC, and that is the last thing you would want for yourself.

#7 Comply With The State Laws For Your Business

Federal, State, and local government regulations need to be adhered to at all times to avoid any hassles for your business. The fees and requirements would vary based on your business requirements for permits and licenses.

There are different types of taxes that your business would be required to pay and adhere to its requirements based on your business type. Appended is the information about some of the taxes that your business needs to pay:

Sales Tax

Are you running a business where you would need to sell a physical product? If so, you would need to apply for a seller’s permit through the Utah Taxpayer Access Point website. The base sales tax in the State of Utah is 4.85%.

The maximum local sales tax rate (over and above the state sales tax rate) is 1%, and the maximum county rate is 0.25%. While this is one tax, some other taxes come into play, and you may read through the piece to find the details.

Employer Tax

Do you have employees in the State of Utah? If so, then you would need to register for Unemployment Insurance Tax through the Utah Department of Workforce Services. Along with the aforementioned, you would be required to sign up for Employee Withholding Tax through Utah’s Taxpayer Access Point.

Income Tax

Utah, unlike other states, has two different slabs for income tax. These options include state and federal taxes. These taxes vary depending on various factors, and appended are the details for your perusal:

State

Utah’s individual income tax rate is 4.65%, and this doesn’t vary based on the income of your LLC. You need to file your state tax returns by or before April 18 every year. If you need assistance with filing your taxes you can visit the Utah State Tax Commission website.

Federal

While you have filed your state income tax, you also need to file your federal income tax in the state of Utah. The same needs to be done by using Form 1065 and Form 1040 Schedule C for multi-member and single-member LLCs

#8 Hiring Employees For Your LLC

If you are planning to hire employees for your LLC in the state of Utah then you need to first verify if they are eligible to work in the United States of America. You need to report these employees as ‘new hires’ to the state.

As a business, you are required to provide workers’ compensation insurance for employees. You need to withhold employee taxes, print workplace compliance posters, and place them in visible areas of your workspace. Visit the Utah Department of Human Services for more information!

Frequently Asked Questions​

You can file the Certificate of Organization online in two business days and five to seven business days via postal mail.

A domestic LLC operates within the state, while a foreign LLC wants to operate beyond the state area of Utah. In case you want to expand your business beyond Utah, then it’s advisable to register as a foreign LLC.

IRS informs you about different tax classification options that are available when it provides you with the EIN. In a normal scenario, LLCs pick the default tax status. There are situations where you can reduce your federal tax obligation by choosing the S Corporation (S Corp) status.

The minimum wage in Utah for anyone working in an LLC is $7.25 per hour. You need to pay employees bi-monthly, but a yearly packaged employee can get paid monthly.

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