Utah LLC Costs
Small businesses and entrepreneurs benefit when they decide to form an LLC in Utah. The business structure provides business owners with liability protection, unique tax breaks, state-specific incentives, and a flexible management structure. A common misconception is that LLC formation in any state is too complicated and expensive. However, it is a straightforward, affordable process for most people.
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Costs to start an LLC in Utah
LLC Certificate of Organization ($70)
- You must file your LLC’s Certificate of Organization with the Utah Department of Commerce.
- The cost for filing your Utah Certificate of Organization is $70.
- The state of Utah does offer a 2-day expedited LLC service for an additional $75.
Utah annual report fee ($20)
- You must file an annual report with the Utah Department of Commerce.
- You will use the Utah Business Renewal website to submit your LLC annual report.
- The annual fee in Utah is $20.
- The annual report fee is due yearly on the anniversary of the LLC’s formation.
- Failure to file your Utah annual report will result in a $10 penalty and possible dissolution.
Utah registered agent fee (varies between $50 to $300)
- In Utah, you must appoint a registered agent if you form an LLC.
- Appointing a registered agent alerts the Utah Department of Commerce that someone is physically available to accept subpoenas, tax notices, and other documents during business hours.
- Anyone can act as a registered agent if they meet the Utah state requirements. It includes appointing yourself.
- The LLC cost for a registered agent in Utah will depend on the commercial service you appoint, the needs of your LLC, and state filing fees.
Fees to form a foreign LLC in Utah ($70)
- If you have an existing limited liability company in a different state, you will have to register as a foreign LLC if you are expanding into Utah.
- You can register a foreign LLC online using the Utah OneStop Business Registration System.
- Or, you can complete the Foreign Registration Statement and submit it to the Department of Commerce.
- The LLC filing fee to register a foreign LLC in Utah is $70.
LLC name reservation fee ($22)
- You do not have to reserve an LLC name before formation in Utah.
- However, reserving an LLC name ensures no one else can register the same company name before you can start formation.
- An LLC name in Utah must be unique.
- You can reserve a Utah LLC name for up to 120 days before formation.
- You will complete the Application for Reservation of Business Name and submit it to the Utah Department of Commerce.
- The cost to reserve a Utah LLC name is $22.
DBA filing fees in Utah ($25)
- The shortened business acronym DBA means ‘doing business as.’ A DBA, or an assumed name, is any registered name that an individual or company utilizes to operate under that is not its legal name.
- LLCs are not required to file a DBA in Utah. However, registering a DBA does benefit some businesses when it comes to branding and marketing.
- An assumed name does not have to be unique in Utah.
- You will complete the Business Name Registration and DBA form and submit it to the Utah Department of Commerce.
- The cost to register a Utah DBA is $25.
Cost of certified document copies ($12)
- You will order certified LLC document copies using the Utah Department of Utah Division of Corporation and Commercial Code website.
- The cost for certified LLC documents in Utah is $12.
Utah Certificate of Existence ($12)
- Banks and money lenders will require you to present a copy of your Utah Certificate of Existence before allowing you to open a business bank account.
- The filing cost for a Certificate of Existence is $12.
Foreign LLC name reservation fee ($22)
- As a foreign LLC, you must reserve your company name through the Utah Department of Commerce.
- You will complete the Application for Registration of Corporate Name and submit it to the Department of Commerce.
- The LLC cost to reserve a foreign Utah LLC name is $22.
Steps to start an LLC in Utah
Choose a business name
When deciding on an LLC name in Utah, you will want to consider a few things.
- A Utah LLC name must be unique and available for use.
- The LLC name must meet all Utah naming requirements.
- You keep branding simple by checking for web domain availability.
You will use the Division of Corporations and Commercial Code website to conduct a name search.
LLC name reservation fee
Utah does not require the reservation of an LLC name before formation.
You can reserve a Utah LLC name by submitting the form by mail. The reservation is good for up to 120 days before formation.
The cost to reserve a company name in Utah is $22. An LLC name is good for up to 120 days. Utah does not require you to reserve an LLC name.
Appoint a Utah registered agent
You must appoint a registered agent in Utah when forming an LLC in the state.
The price for a Utah registered agent or service varies between $50 and $100 a year. The cost depends on the state and your LLC needs.
A registered agent in Utah is an individual or business entity that receives tax forms, legal documents, subpoenas, civil notices, service of process, and other official government correspondence on behalf of a sole proprietorship, corporation, or LLC.
The registered agent you choose must be a Utah resident or a registered agent service authorized to conduct business in the state.
- Starter Plan – $39 a year plus State Fees
- Pro Plan – $149 a year plus State Fees
- Premium Plan – $249 a year plus State Fees
ZenBusiness has a stand-alone registered agent service for Utah LLCs. The price is $99 per year.
- Total Out The Door Utah LLC Formation Service Package – $50 a month and includes:
- Utah State Fee
- Filing Service Fee
- Registered Agent
- Tax ID
- Annual Plan – $225 plus State Fees a year
- Economy – $79 plus $153 Utah filing fees
- Standard – $329 plus $153 state filing fees
- Express Gold – $349 plus $255 state filing fees
File Utah Certificate of Organization
You must file your Utah Certificate of Organization with the Department of Commerce.
You can file the Certificate of Organization online using the OneStop Business Registration System.
Or, you can complete the Certificate of Organization form and submit it by mail.
The LLC cost to file the Utah Certificate of Organization is 70.
Utah offers a 2-day expedited LLC service for an additional $75.
160 E Broadway
Salt Lake City, UT
Utah Division of Corporations and Commercial Code
PO Box 146705
Salt Lake City, UT 84114
The LLC formation form will ask for specific information.
- LLC name
- LLC address
- Registered agent information
- LLC members information
- LLC purpose and duration
The fee in Utah for filing your LLC Articles of Organization is $70.
Get a Utah LLC EIN
An Employer Identification Number, or EIN, can also be referred to as a Federal Employer Identification Number (FEIN) or Federal Tax ID Number (FTIN).
The 9-digit EIN acts as a Social Security Number for companies for income tax purposes. The IRS issues an EIN for no additional charge.
You must register an EIN if you are converting a sole proprietorship into an LLC in Utah.
Applying for an EIN is a simple process online through the IRS website.
Business banking for a Utah LLC
It is advised that you open a business bank account that is separate from your personal bank account. It protects your personal assets and future credit scores.
A bank will require you to submit a copy of your Articles of Organization, operating agreement, and EIN before letting you do business banking.
Business banking accounts are generally free, and do not have additional charges or fees.
Business attorney fees in Utah
Business attorneys keep LLC formation in Utah accessible, and you will have someone on your side to handle future business-related issues.
Utah business attorneys often offer free consultations for first-time clients.
Professional services such as LegalZoom and Rocket Lawyer offer LLC formation packages that include comprehensive legal services.
On average, a business lawyer in Utah will cost $300 per hour.
LLC taxes in Utah
- LLCs are pass-through entities in the state of Utah. It means that an LLC owner files their personal taxes rather than the LLCs tax returns.
- If you sell physical products in Utah, you must register for a seller’s permit using the OneStop Online Business Registration System.
- An LLC in Utah is subject to a franchise tax of 5% on net income. The annual franchise tax has a minimum of $100.
- The Utah state tax rate is 6.10%, and the max local and county rate is 2.95%.
- If you hire employees, you must register for the Unemployment Insurance Tax through the Utah Department of Workforce Services.
- You will also register for Employee Withholding Tax with Utah’s Taxpayer Access Point.
- By hiring a tax expert, you are reducing the chance of missed deadlines, penalties, and possible dissolution.
Business licenses and permits in Utah
The LLC cost for business licenses and permits in Utah will vary depending on where the company is located and the type of business.
You will use the Utah Department of Commerce Division of Occupational and Professional Learning website to locate the necessary licenses and permits for your LLC.
A business licence in Utah varies between $22 to $52. The total cost of permits and licences will depend on where your LLC is, and the type of LLC.
Local government agencies in Utah will have different processes and rules for licenses. You will want to contact the office to inquire about the process, price, and office hours.
Some Utah LLC formation documents will require a notarization from a notary public.
If you cannot locate one, most government agencies have one in the office.
According to Utah state law, a notary public can only charge a max of $10 per act.
Employer obligations in Utah
- If you hire employees in Utah, you have specific obligations.
- You will verify that all Utah LLC employees are eligible to work in the United States using Form I-9 from the USCIS Website.
- You must enroll in worker’s compensation insurance.
- You will report all new hires to the state of Utah using the Utah.gov Utahhid portal.
- You can find a complete list of Utah employer obligations.
Benefits of a Utah LLC
- Business banking is more accessible when you form an LLC in Utah. Banks mandate that you open separate personal and business banking accounts. It will protect your future liability.
- Compliance requirements differ depending on the business structures. Incorporations must answer to board members and stock owners when they make any major business decision.
- LLCs are pass-through entities in Utah. Owners file personal tax returns rather than the LLC’s tax returns.
- By forming an LLC in Utah, you can reduce the chances of being double taxed. C-corporations are double-taxed while LLCs are not.
- The cost of forming an LLC in Utah is affordable. The cost of filing your Articles of Organization is only $70.
- Utah has state-specific incentives that are available to LLCs. Foreign Trade Zone (FTZ) is an incentive available to LLCs in the state.
How long does it take to register an LLC in Utah?
It will take the Utah Department of Commerce 2 business days to process online LLC registrations. If you file by mail, it will take 3 to 7 business days.
The state of Utah does offer a 2-day expedited LLC service for an additional $75.
How do I dissolve my Utah LLC?
You must dissolve your Utah LLC to avoid ongoing costs. You will file your statement of dissolution online with the Utah Division of Corporations and Commercial Code.
Utah does not charge you for LLC cancellation.
Does Utah have a publishing requirement?
Unlike Arizona and Nebraska, Utah does not have any publishing requirements for LLCs in the state.
Do I need a business operating agreement for my LLC in Utah?
LLCs in Utah are not required to submit an operating agreement to the Secretary of State. However, having one on file reduces the chances of future misunderstandings. And some banks will require it.
An operating agreement can be written or oral as long as it is in the company’s files.
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