Utah is one of the least expensive states in which to form an LLC. It’s also one of the most convenient states in which to form an LLC. You can file almost all of the required paperwork online, and there are very few fees associated with any of it. Becoming a Limited Liability Company in Utah requires you file the appropriate paperwork, choose an individual name, and continue with the annual renewals. It’s not a complicated process, but there are a few challenges some people face choosing to form an LLC. Don’t mistake these challenges for burdens. They might require a little additional time and effort to handle, but they’re not deal breakers when it comes to forming your LLC. The protection you’ll receive personally from any lawsuits filed against your business makes it worth it to spend time filing the necessary paperwork. Everything you need to become an LLC is located here on the Utah Department of Commerce website.
Choose a Company Name
This might be the most complicated part of forming an LLC in Utah. It’s only complicated because you have to choose a name that isn’t already registered by another company. The Utah Department of Commerce website allows you to look up your potential name in the database to see if it’s available. If it is, you’ll want to file the application to reserve the business name. This holds your chosen business name for you for 120 days. That’s enough time to finish all the paperwork required for registration. The fee is $22, and you can file online or through the mail if you prefer. Keep in mind filing by mail allows other business entities plenty of time to claim your name before you, and that makes the entire application process longer.
File the Certificate of Organization
The most important thing you need to become an LLC is a registered agent. LLC means Limited Liability Company, which protects you personally from the business debts and lawsuits that might occur. Your registered agent is any person or business willing to handle any lawsuit or legal issue for your business, and most people simply hire an attorney or law firm to do this on their behalf. You don’t have to hire an attorney, but you cannot appoint a registered agent who is in any way tied to your company as a whole. Once this person agrees to become your agent, you’ll then file your certificate of organization.
This is found online, and it can be filed online or through the mail. You’ll need to include your business name and address, the name and address of your registered agent, and you need to add two more features to this to complete the application:
- Whether or not your business is a manager or member managed business
- Names and addresses of all people considered an organizer
Once this information is complete, you can file your articles of organization online or through the mail. Once they are approved, you’ll receive confirmation from the state letting you know your business is officially registered as an LLC.
Handle Business Licenses
Depending on the type of business you are opening, you need to handle applications for all your business licenses. Without knowing precisely which type of business you are opening, we can’t tell you which licenses you need, but the State of Utah makes it clear and easy to figure out on your own.
You’ll also need to register your LLC with the Utah State Tax Commission if you plan on selling goods and collecting sales tax. If you have more than one member associated with your business, you have to file for an Employer Identification Number with the IRS, and this is true even without employees.
Pay Annual Renewal Fees
All Utah LLCs are required to file an annual renewal complete with a $15 fee. It needs to be filed every year on the anniversary of your LLC’s registration. The good news is Utah’s Division of Corporations sends reminders every year 60 days prior to your due date.
Registering your business as an LLC in Utah is simple, and it’s recommended. Personal protection from legal issues stemming from your business is a good idea and for such a small fee and so little money every year to stay registered, it’s worth it.