Utah State LLC: Everything You Need to Know
You can form a Utah state LLC, a business structure that benefits from pass-through taxation and legal protection of personal assets, easily and affordably.3 min read updated on January 01, 2024
You can form a Utah state LLC, a business structure that benefits from pass-through taxation and legal protection of personal assets, easily and affordably. To form a Utah limited liability company successfully, you will need to follow the steps listed below.
Name Your LLC
The first and most important step when forming an LLC is deciding on its name. Do some research to make sure you are choosing a name that customers can search for easily and that's properly suited toward your company's product or services.
When naming your Utah LLC, you will need to follow certain naming guidelines to make sure the state approves the name. These naming guidelines include:
- Having Limited Liability, Limited Company, LLC, or LC at the end of the name.
- Avoiding restricted words such as University, Bank, or Attorney unless you file additional paperwork and have licensed individuals such as doctors or lawyers in the LLC.
- Avoiding prohibited words, such as Treasury or FBI, that could lead people to associate the LLC with a federal or state agency.
- Making it different from the name of any other registered business in the state.
To make sure your name is available, perform a name search on the State of Utah website. You might also want to check for and reserve a domain and email address before officially choosing your LLC name. Once you have found an available name you can file a name reservation at the Utah Online Business Registration website or by sending in an Application for Reservation of Business Name along with the $22 filing fee. The reservation will allow you to hold your business name for 120 days until your LLC is formed.
Appoint Your Registered Agent
The state of Utah requires you to choose a registered agent for your LLC. The registered agent receives legal documentation and paperwork on behalf of your company. This paperwork can include state filings as well as any process paperwork that occurs from a legal action. You might elect to be your own registered agent or choose a person or corporation that is authorized to conduct business in Utah and has a physical street address.
File Your Articles of Organization
- Your LLC's name and business address.
- The name and address of the LLC's registered agent.
- The name and address of each of the LLC's organizers.
- A statement indicating whether you'll be forming a member-managed or manager-managed LLC.
You will have to send a filing fee of $70 along with the Certificate of Organization. You can pay an additional fee of $75 to expedite these services. Standard processing times by the Division of Corporations can take up to 10 business days.
Create Your Company Operating Agreement
The state of Utah does not require an operating agreement, but it is wise to have one outlining the LLC's rules for ownership as well as its operating procedures. The state will recognize an LLC's operating agreement as a governing document.
Obtain an Employer's Identification Number
Limited liability companies with more than one member or single-member LLCs that have employees will need to obtain an Employer Identification Number (EIN) from the IRS. Your EIN, or Federal Tax Identification Number, will act as the social security number for your company and will be used to:
- File both state and federal taxes.
- Open business checking accounts or apply for loans.
There are no fees to get an EIN, and you can either file for the number online or print out the EIN form and mail it in.
Separate Your Personal Assets From Your Business Assets
When forming your LLC it is best to open a separate business account. Doing so:
- Separates your personal assets from your company's assets, which helps protect your personal assets.
- Makes accounting and filing taxes easier.
You should also apply for a business credit card to:
- Separate your personal and business expenses.
- Build your company's credit, which can help you get funding in the future.
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