LLC Operating Agreement Utah: Everything You Need to Know
An LLC Operating Agreement is a legally binding document that is used to establish policies and procedures regarding your Utah LLC.3 min read
An LLC Operating Agreement Utah is a legally binding document that is used to establish policies and procedures regarding your Utah LLC. While this document is not required in the State of Utah, it is highly beneficial, and without it, could potentially lead to legal disputes.
How to Write the Operating Agreement
You can find the document on the Utah Secretary of State website. Once you download the form, you can print it out and fill it out in its entirety before submitting it. Generally, you’ll need to include specific business information, including the following:
- Business name
- Principal place of business
- Member names and addresses
- The date in which the company was formed
- The contribution amounts of each member, along with the ownership percentage
- Bank account information
- How the company is going to be managed
- If manager-managed, identify the manager’s name and address
Additional significant items should be included in the operating agreement, including decision making processes for the death or disability of a member; transfer of membership rights; the purchase and/or sale of property; admitting new members; when and how meetings will take place; how the LLC could be dissolved and what events could trigger the dissolution of the LLC; an indemnification clause; how disputes amongst members will be handled; and other significant items that you might want to include.
Once all members have agreed on what is included in the agreement, the document must be signed by everyone and dated. Copies should be made and handed out to all members.
Steps After Forming Your Business
Even after forming your Utah LLC and drafting your operating agreement, there are some other required steps to take before you can begin conducting business in the State of Utah. You should think about opening a business bank account, as separating the LLC assets from your own personal assets can help prevent liability issues. You should also consider opening a business credit card for these same reasons.
If you plan on hiring employees, then you will need to obtain an EIN on the IRS website. You will also need to register for unemployment insurance, which can be done on the Department of Workforce Services website. Lastly, you will need to register for employee withholding tax through the Utah Taxpayer Access Point website. If you plan on selling goods or offering services in the State, then you will have to register for Utah Sales Tax.
Additional insurance that is required if you have employees is workers compensation insurance and general liability insurance (beneficial but not required). During the process of hiring employees, you need to make sure that you are hiring employees who are eligible to work in the US. Once you hire a new employee, you need to register each employee with the State and print compliance posters throughout the office in areas that are visible to all employees.
Another important step is to setup a tax accounting system, which helps you organize your finances, including expenses, income, tax bills, etc. Instead of doing this manually, it could be best to have some sort of software to help you more easily keep track of everything.
Remember that you must comply with federal, state, and local regulations in order to be in good standing. Therefore, you should use the U.S. Small Business Administration guide to federal business licenses and permits in order to understand what licenses and permits are required of you. You should also visit the Utah Division of Occupational and Professional Licensing to identify what state and local permits are required before you can conduct business in the State of Utah. If you have any questions, you can also contact your local Chamber of Commerce. If you want to be sure that you are following all rules and regulations, you can hire a professional service that can do the work for you, ensuring that you obtain all required licensing and permits. If you are required to obtain licensing and permits, remember that there are fees for each one.
If you need help drafting your Utah LLC operating agreement, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average at 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.