Utah LLC – How to Form an LLC in Utah [5 Easy Steps]

Forming an LLC (Limited Liability Company) in Utah is easy and affordable. The following are few procedural steps on how to start an LLC in Utah. LLCs can be formed in two ways, domestic and/or foreign. If you are planning to set up an LLC in states other than Utah, visit How to Start an LLC.

Utah LLC

How to Start a Utah LLC

Suppose you’re planning to invest in some profitable business or maybe about to set up your corporation in Utah. In that case, forming an LLC in Utah is the simplest form of business for you. Having an LLC is better as it reduces the owner’s personal liability for company and business debt.

An LLC or a Limited Liability Company a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. This section gives you a step-by-step guide on How to Start an LLC in Utah. 

Step 1: Decide a Name for Your LLC

name llc

If you are to start an LLC in Utah, the first thing you do is decide on a business or company name, and how to name your LLC may be tricky. Thus, you have the option to choose a name that complies with the Utah business naming requirements. It must also be easily searchable for potential clients. Here is a step-by-step guide to follow when naming your Utah LLC. 

Why do you need a proper business name?

If you want your LLC to have special identification, your company name is essential. However, many people face lots of issues by avoiding focus on choosing a business name for their LLC business formation filings.

Because of this, here are some of the major benefits of choosing the best LLC corporate names.

  • To help establish a company’s presence in the market, a proper business entity type will help you. This also creates a new identity that will resemble your LLC.
  • After you’ve properly chosen the name for your LLC, you will have no problems finishing the registration process.
  • You can only get the EIN number when you have your name registration certificate with you.
What are the requirements when deciding a name for your LLC? 

name search is vital to make sure your business’ name is unique. Check the availability of your name with Business Entity Search on the Utah Secretary of State’s website. Reserve the name by completing the Name Reservation Request Form for Domestic Entities.  

  • Don’t include words that could confuse people about your company. Words like ‘treasury, state department.’
  • You should also avoid restricted words like ‘bank, attorney, university,’ because they may require a lawyer and more paperwork.
  • As for a business website and your URL name, check if your name is still available for domain use with NameCheap.
Reserve a business domain

Even if you don’t have plans to set up a website today, it will help if you buy a domain to avoid others from using your name for their website, so do visit NameCheap for your domain name and Kinsta for web hosting.

If you have decided on your URL name and have reserved it, set up a professional email account with Google GSuite.  

Step 2: Assign a Registered Agent in Utah

get registered agent

A registered agent, or business entity, is a person that will act or work on your behalf. This person or business will receive significant tax forms, legal forms, formation documents, any internal document, a notice of lawsuits, and other official government correspondence in Utah. Choosing a Utah-registered agent for service of process for your LLC is required. 

Make sure your registered agents are residents of Utah. It could also be a business. Here are the recommended agents and employees for you:

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These five LLC formation services are recommended agents’ registered services as they are authorized to conduct business in Utah. Compare them to check the best yet cheapest option for you. Besides, these professional service providers can guarantee you professional services like filing services to potential customers because they have been in the business for years. 

Step 3: File Certificate of Organization in Utah

file formation certificate

A Certificate of Name Reservation is needed to file a Certificate of Organization, as other states call it. You need to make reports of this certificate with the Utah Secretary of State, which costs $70. You may file them online or by mail. 

This Certificate of Formation is a legal document needed to form your business officially. It will indicate details about your LLC in Utah, like if it is a member-managed or managers-managed. LLCs with employees need to check the Utah government website for guidelines to hire employees. 

Before you start filings, you must already have your LLC name and registered agents or employees. You will attach a copy of your Name Reservation Certificate along with a list of the services that your Utah LLC will offer.

How to File Online

Go to the Secretary of State Online Service. Select “non-subscriber.” Fill out the online form. The website will alert you if your county does not support online filings after selecting your principal county.

Step 4: Create Your Utah LLC Operating Agreement

create operating agreement

A limited liability company operating agreement is a document that legally outlines the proprietorship and operating procedures of your LLC This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts. 

Starting an LLC in Utah does not require you to have a limited liability operating agreement, but it is ideal to have one that contains all your details of business operation.

Step 5: Filing a Utah LLC EIN

The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify types of business for tax purposes. It is like a Social Security number dedicated to a business. 

It is also called a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN). You will need this number for tax filing and to determine tax classification options.

Mail to:

Internal Revenue Service

Attn: EIN Operation

Cincinnati, OH 45999

Fax: (855) 641-6935

Fee: Free

After Starting your Utah LLC 

After forming your LLC, there are still some things that you will need. Take note of the following:

  • Get a company business account
  • File Utah business permits & licenses
  • Get liability for business insurance with coverage for employees
  • File a Utah LLC annual report or biennial report
  • Already existing LLCs that wish to operate in Utah must register as a foreign Utah LLC.  

This page has provided you with steps to LLC formation and filing processes. You now have to remember the upcoming filing deadline and filing fee, annual costs, or filing costs, including fees for late filings to make sure your LLC is up-to-date.  

Why an LLC in Utah

Utah State, along with providing a business environment, focuses on giving up incentives to LLCs established in the state. These incentives include business funding options and tax liability reductions. These are enough to keep a business running actively. That is why before choosing any state, you must first go through the benefits of this state.

Foreign Trade Zones of Utah

If you are into the foreign trading business and have registered an LLC in Utah, you must know a foreign trade zone incentive program available in the state. Salt lake city, the crossroads of the west, is the main reason this trade zone is formed. It has several benefits for a business. They are as follows-

  • There is some exportation requirement which is not easily fulfilled by a business, but the foreign trade zone program can help in fulfilling all the requirements.
  • The storage of products is made easy by the foreign trade zone program, and the time constraint is also removed.
  • The businesses save double the tariffs that they have to pay on the important products and machinery.
  • Businesses have to bear the direct entry and weekly entry fees in other states, but due to the FTZ, this fee is also saved.
  • The custom reporting also gets strong and easy with the help of foreign trade zone assistance.

Recycle Market Development Zone(RMDZ)

If we see the census reports published by the US government, then one fact is obvious that the growth of the use of recycled product use in the country has grown around 4 times since 1980. Due to this, the recycling market has seen steep growth. If an entrepreneur has a business idea related to the recycling of products, they can take the help of the RMDZ program. This program will help in the collection, processing, and distribution of the recycling material, which can again be used in manufacturing. Some benefits a Utah LLC will enjoy due to this program are:-

  • On the cost that a business spends on machinery, a tax credit of 5% will be provided.
  • On the operating expenses, 20% state tax credit is provided up to $2000.
  • Discounts of license fees and assistance in some operation processes are also provided.
  • Technical assistance is always open from the side of the government in this business.

Enterprise Zone 

Before you start an LLC in Utah, you will get the option of choosing the enterprise zone. A business can enjoy a tax credit of around $200-$750 based on a full-time position offered by the company in this zone.

Top Businesses in Utah

Before you form an LLC in Utah, you should gain overall knowledge regarding the state’s economy. You must at least consider the top business industries and their contributions to the state GDP for knowing the environment better.

Farming Businesses

Farming businesses are the most important from the point of view of Utah. People think that Utah is a dry land state, but still, it produces a fair amount of crops and earns good profit from them.  Crops like Barley that can tolerate low water levels are grown in the state along with livestock rearing. Around 26,000 people are employed in the sector, contributing $3.5 billion directly and $10.7 billion through its manufacturing.

Tourism Businesses

The reason behind tourism has become a vast business of the Utah state is its national parks. If we see the number of national parks available in the state, then the state ranks third. The Utah state is a home of 7 national parks, 2 national recreational areas, 6 national forests, and various state parks.

In the previous year, the state has catered around 136,000 tourists, with the help of which the sector can contribute around $9.75 billion to the GDP of Utah.

Mining Businesses 

The mining businesses in Utah are attracting many people to immigrate to the state and work in their mines. The mines of Utah, like the Bingham mines, are rich in metals like copper, gold, silver, zinc, and lead. Along with that, there is some fossil fuel deposition found in the state having coal, petroleum, and natural gases.  The contribution that is made by the mining businesses to the economy of Utah is $2.1 billion from metals and around $480 million from coal.

Some of the best small scale businesses that a person can opt for in the state are:-

  • Real estate leasing
  • Outpatient clinics
  • Dental practices 

Utah LLC Formation Review

Time needed: 30 minutes.

Just to recap, here are the easy steps again when forming an LLC in Utah. Click on the steps in this list to read the full detail.

  1. Name your Utah LLC

    The first thing you must do is to choose a company name, which should include the phrase “limited liability company,” or one of its abbreviations (LLC or L.L.C.).
    name llc

  2. Choose a registered agent

    In Utah, it is mandatory to select a registered agent for your LLC. You can check out our list of our 5 Best LLC Services in the United States.
    get registered agent

  3. File a formation certificate

    Filing a formation certificate is necessary when forming an LLC. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
    file formation certificate

  4. Create operating agreement

    An operating agreement is not a strict requirement but something encouraged when you start an LLC.
    create operating agreement

  5. Get an EIN

    The Employer Identification Number (EIN), also called  Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
    get an ein

F.A.Qs

What is the difference between ‘domestic LLC’ and ‘foreign LLC’?

A “domestic LLC” is one that conducts business in a state where it was formed. Meanwhile, a “foreign LLC” is an existing LLC that extended business to another state.

What do I need for Domestic and Foreign LLCs?

For Domestic LLCs, it is vital to have a Certificate of Name Reservation and Certificate of Formation. For the foreign LLCs, you must have a Certificate of Good Standing.

Is the cost to form an LLC the same across states?

The cost to form an LLC varies per state.

Does an LLC need to use a DBA?

Seldom do L.L.C.s use D.B.A. or a ‘Doing Business As’ name nor a fictitious business name. However, if you want to have one, you make read more about DBAs here

Why are operating agreements important?

This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.

Is there anything else I should keep in mind when naming my LLC?

>Your name should have “L.L.C. or LLC” or the phrase “limited liability the business.” 
>Do not include words that could create confusion between your LLC and any government business. 
>Words like ‘bank, attorney, university’ are restricted as well. 
>Lastly, your name should distinguish from other limited liability corporations, limited partnerships, or registered limited liability partnerships.

Where can I file my LLC name?

Typically, you can file your LLC name online or by mail. Check with the state where you will set up your LLC name. Take note that the fees for business names may also vary per state.  

How can I know if my URL name is available?

As for a website and your URL name, check if your name is still available for URL use with NameCheap to see if your name is available as a web domain. Even if you don’t have plans to set up a website today, it will help if you buy a URL. Buying it can help to prevent others from getting your name; check out WPEngine, Kinsta, and GoDaddy for hosting and building your website. 

Can I mail the LLC Certificate of Formation to the Secretary of State?

No. Never mail these documents or payments to the Secretary of State directly. 

Why do I need an EIN?

The reason you might need an E.I.N. is that it would help for three reasons:
>Opening a business bank account
>Filing and managing federal and state taxes
>Hiring employees or agents

How do I get an EIN when I do not have a Social Security number?

You are not required a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.

I already have an EIN for a sole proprietorship; what now? 

Note that an LLC is different from a sole proprietorship. If you already have an EIN for your sole proprietorship, the IRS will require you to get a new one when your convert to an LLC. 

Do foreign applicants need an SSN to get an EIN?

International EIN applicants do not need an SSN to get an EIN.

What is an IRS?

The IRS is the one that will issue your EIN. You can request an EIN from the IRS ONLINE or download the FORM, fill it out, and send it by mail or fax.

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