Utah LLC: Everything You Need to Know
Utah LLC provides its members with limited liability in terms of the company’s debts and obligations. 3 min read
Utah LLC: Everything You Need to Know
A Utah LLC provides its members with limited liability in terms of the company’s debts and obligations. An LLC, or limited liability company, is an attractive type of business structure that doesn’t hold its owners personally liable for the losses or debts of the LLC. The State of Utah has over 95,000 active LLCs, ranking it sixth in the State on the small business survival index, with the eighth best tax and regulatory requirements.
Characteristics of a Utah LLC
- A Utah LLC does not have to conduct annual meetings
- A Utah LLC does not have a restrictive number of shareholders in the way a Subchapter S corporation has
- Utah LLC members can participate in management decisions with greater flexibility than members operating a limited partnership.
- Utah LLC members cannot be held personally responsible for the debts and obligations of the company as those members operating a general partnership or limited partnership would be.
- Utah LLCs can have members that are individuals, general partnerships, limited partnerships, associations, trusts, estates, or even corporations. In turn, the Utah LLC can be a general/limited partner or manager of another type of business structure.
- Utah LLCs are comprised of members, managers, and employees. Management of the LLC is given to the members or managers, as specified in the Certificate of Organization.
- Utah LLCs must abide by statutory laws within the State of Utah.
- Should the Utah LLC wish to disband, it must file a Certificate of Dissolution. Similarly, if the Utah LLC wishes to amend its certificate, it must file a Certificate to Amend.
- Utah LLCs are required to file other annual paperwork, including annual reports and disclosures as to the profits and losses of the company.
How to Create a Utah LLC
Certain steps must be taken in order to apply to become an LLC in the State of Utah. Generally, similar steps are taken in other states. Most states, including Utah, have a simple and straightforward process for creating an LLC. You’ll file what’s called the Certificate of Organization, which will include the following information:
- Company Name. The name must have the following words after it: Limited Liability Company, Limited Company, L.C., or L.L.C. There are other key requirements to abide by when choosing a name, so be sure to look on the Utah Secretary of State website to ascertain if your name is appropriate. You’ll also need to make sure that another Utah LLC isn’t already using the name you have chosen. Therefore, this is one of the first steps that should be taken before creating your LLC.
- Choose a Principal Office Address. This will be your primary physical address where the company is located. Even if you will generally conduct work online, you’ll still need a brick-and-mortar address for your company. You can use your personal address if need be.
- Find a Registered Agent. This person or business will be the designated party who receives service of process in the event that a legal suit is brought against you. Similarly, the registered agent will receive all legal paperwork regarding such lawsuits. In the State of Utah, the registered agent must be located in the state.
- Identify the Managers/Members. This is optional. However, if you choose to include this information, you’ll provide both the names and addresses of all managers and members of the company. While this is optional, at least one manager or members must be identified in the annual report that you will file.
- Duration. This is another optional element. You can indicate the duration of your LLC; however, most people assume their LLC will be in existence for an indefinite period of time.
- Purpose. This is also another optional element when filing the Certificate of Organization. It is not necessary to indicate the purpose of your LLC, however, you can include this information if you choose to do so.
- Filing Fee. There is a general filing fee of $70 to create your Utah LLC. You can file in person, via mail, fax, e-mail, or online.
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