Business Registration Utah: Everything You Need to Know
Business registration Utah is actually a fairly simple and straightforward process.3 min read
2. Forming a Utah LLC: Hiring a Registered Agent
3. Forming a Utah LLC: Certificate of Organization
4. Forming a Utah LLC: Draft an Operating Agreement
5. Forming a Utah LLC: Acquire a Federal Tax ID Number
Business registration Utah is actually a fairly simple and straightforward process. By filing the correct documents with the Secretary of State and paying the required fees, your business will be legally established.
Forming a Utah LLC: Naming
Naming your business is the initial step of incorporating your limited liability company in Utah. Choosing a suitable name is one of the most important requirements of LLC formation, as you want to make sure that your future customers can easily search for and find your company name.
When selecting your name, make sure you are following Utah's naming convention for LLCs. For example, your company name needs to include the words ‘limited liability company' or an abbreviation of these words such as LC or LLC.
Refrain from using prohibited words in your LLC name such as:
- State Department
Certain words, such as university or bank, will require that you file additional paperwork and hire a licensed professional to be a part of your LLC. You can find full naming rules in the Utah Business Name Conventions and Policies guidelines. After you've chosen a name for your LLC, you need to search the Utah.gov website to make sure that it is available, meaning it is not currently in use by another company.
If the name that you want is available, you should purchase a matching domain name. Every business needs a web presence, and purchasing a domain for your company will prevent a competitor from purchasing it.
Forming a Utah LLC: Hiring a Registered Agent
Hiring a registered agent is the second step of establishing your LLC in Utah. All limited liability companies in Utah must name a registered agent.
Your registered agent will handle all your LLC's legal documents. They will receive documents mailed to your company and will mail documents on your behalf. Some of the papers that your agent can receive include state filings and notices that you are being sued (service of process).
Individuals can serve as your registered agent as long as they are residents of the State of Utah. You can also name a corporation as your agent as long as the company is legally allowed to transact business in the state. It is possible to name a person that works in your LLC as your registered agent.
Forming a Utah LLC: Certificate of Organization
Once you're ready to register your company in Utah, you should file a document known as the Certificate of Organization. You can file your certificate by mail or online. Before you file, however, you should decide if your company will be managed by its members or by an outside hire. You will need to indicate your choice on your Certificate of Organization. When filing, you must pay a $70 fee. This fee is nonrefundable.
Forming a Utah LLC: Draft an Operating Agreement
LLCs in Utah, as in many states, are not required to draft an operating agreement, although having this document is a good idea for most companies. An operating agreement essentially details the ownership structure of your company, and also describes how your company will be run. Drafting an operating agreement is important because it makes sure that all your owners understand their role in the company, making future conflicts much less likely.
Forming a Utah LLC: Acquire a Federal Tax ID Number
After you've completed your Utah business registration, you will need to obtain an Employer Identification Number before you can start offering services or goods to customers. An EIN identifies your company, and it functions much like a Social Security Number.
With your EIN, you will be able to:
- Start a bank account for your LLC.
- Pay your taxes at both the state and federal levels.
- Hire employees for your business.
You can obtain your EIN from the Internal Revenue Service, and there is no charge for receiving this number. You can either request your tax ID number online or through the email. Applying online means you'll receive your EIN almost immediately, making it the better option. If you want, you can also request your EIN by fax. The fax number for the IRS is (855) 641-6935. Make sure to include a return fax number so that the IRS can send you your ID.
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