So it’s time to start your LLC in Utah. You’ve got the idea. You’ve got the name. You’ve got the money. But do you have everything you need to turn your awesome idea into a full-time, well-paying gig or a profitable side hustle? That’s where this post comes in.
The good news is that forming a limiting liability corporation (LLC) in Utah is neither difficult nor expensive. Still, you’re probably asking yourself “How much does an LLC in Utah cost?”. Smart question: You should always prepare yourself for incorporation requirements, annual fees, and general costs of doing business before jumping in with both feet.
Below we’ll discuss the general steps when forming a Utah LLC and the main costs associated with it, including . We will also provide a handy-dandy table of expenses that you can refer to again and again.
Setting up an LLC in Utah might feel daunting, but it’s actually quite simple if you follow the steps. Moreover, the costs associated with each are pretty reasonable, and you have the option of saving even more if you complete them yourself.
Do note, however, that not everyone may find the paperwork involved straightforward. If you’re worried about making a mistake to the detriment of your business, you might want to enlist the help of a registered agent.
One of the most enjoyable steps in setting up your Utah LLC is also one of the most important: picking a name.
Searching for names is free through the Utah Department of Commerce. That way, you can make sure no one else already has your name before you get your heart set on it.
If you find one you like but aren’t quite ready to launch your business, that’s okay: You have options. The best is to reserve your chosen business name so someone else can’t snatch it up. Note that reserving a business name costs $22 and allows you to sit on the name for 120 days.
So, how should you go about picking a name? Here are a few things to consider:
It’s important to make sure it ticks all of the above boxes if you want to set yourself up with the best chance of success.
If you want a straightforward LLC name (e.g. Michael J Fox, LLC) but want to appeal to your customers in a more exciting way (e.g. Foxy Fudgsicles), then you should get a DBA (doing business as) name. This allows you to protect yourself legally using your own name but grab more market appeal.
A DBA also costs $22. It needs to be renewed every 3 years to remain effective.
Your Articles of Organization, sometimes referred to as Articles of Incorporation, are a set of documents that officially recognize your business as an LLC. You file them with the Utah Department of Commerce for a fee of $59.
Utah does not require that you file a statement of information, but it does require the closely related annual report every year after you incorporate.
Registered agents help you keep all the balls in the air without dropping any. We’re talking legal balls, compliance balls, paperwork balls, and fee balls. That’s a lot of balls.
Registered agents do cost significantly more than the DIY approach, of course. You can expect to pay between $50 and $600 for registered agent help in Utah, though $250 is a more common upper cost.
While purely optional, it’s always a good idea to create an operating agreement. This document outlines how the business gets run and is often needed for financial transactions.
Depending on whether you use a lawyer, an operating agreement service like ours, or a DIY approach, you can pay anywhere from $0 to $1,000.
There are a few other costs you should expect to pay as part of doing business in Utah. These include:
Utah law requires businesses to pay income tax. This is a 5% tax on all income, beginning at a minimum of $100.
Note that this is different than a franchise tax, which does not correlate to the business’s income, but is rather a fee levied on all businesses, whether or not they make money. Utah does not have an annual franchise tax.
Licenses and permits are business- and industry-specific, so it’s impossible to curate a tailored list for any type of company that might operate in Utah. Among the possible licenses and permits you might need are:
If you’re not sure what you need, it’s a good idea to speak to an expert.
An annual report, also known as a statement of information, is a document that declares the important business activities that took place over the last year. It gives the state of Utah a complete picture of the financial, personnel, and operational changes that took place over the last fiscal year.
You file the annual report with the Utah Department of Commerce by the anniversary of your initial registration date. It costs $20 per year.
While the annual report is a relatively small business requirement and costs little, don’t let that convince you that it’s unimportant. If you fail to file, you may lose your good standing, risk dissolution of your business, and lose the protection of your name … meaning someone else could take it and start doing business under it.
To avoid late filing, make sure you either have a good command of the dates or have a registered agent who can help you take care of it.
Some LLC owners may choose to create a statement of authority. This specifies which members of the LLC are authorized to make binding decisions on behalf of the LLC. If you don’t want everyone to have such a high-stakes stake, this could be worth the $50.
The good news is that many LLC expenses are eligible for deduction, which means you can subtract their cost from your total taxable income. That’s a major money-saver, as long as you know what qualifies.
“What qualifies” can be difficult to determine, though, as some things are deductible federally but not at the state level and vice versa. A tax preparer can help you here.
You definitely shouldn’t expect to deduct fees related to your LLC filing, DBA, or name reservation. Usually, you also cannot deduct registered agent and legal costs associated with company formation (your first year of business setup), but you can thereafter.
In general, you can expect to deduct:
If you employ only yourself, you can deduct the cost of preparing taxes. That includes software you might buy or preparers you might pay. However, if you have employees, you are ineligible to deduct your preparation costs.
Bookkeeping is tax deductible, both federally and in the state of Utah. The only note is that you must deduct the costs in the year they were incurred, meaning they have to appear on the tax return that pertains to that filing year.
Prefer to do your own bookkeeping? Cool beans: You can deduct the cost of any business, legal, or tax books that you use to maintain your own accounts accurately.
Again, the cost of a registered agent can vary widely, from $50 to $600 in Utah.
That might seem like a lot. However, compare that cost to the cost of losing your LLC name, DBA name, or legal business standing in Utah. If you’re not great with details, it’s probably worth a bit of expert help.
Also keep in mind that you don’t want to go with the lowest bidder, either. That may indicate a lack of expertise. A middle-of-the-road expert is probably your best bet.
If you use an attorney to run any aspect of your business, those fees are deductible, provided they are both ordinary and necessary.
The cost of doing business in Utah depends on what exactly you need to do. This table offers a general list that covers most LLC formation scenarios. Make sure to bookmark it and refer back!
LLC filing fee (Articles of Organization) | $59 |
LLC renewal fee | $18 (plus a $10 late fee if after the anniversary date) |
Annual report | $20 |
Reserve business name (optional) | $22 |
Filing a DBA (optional) | $22 |
DBA renewal fee (optional) | $18 every 3 years, within the 60-day window before expiration |
Operating agreement (optional) | $0 to $1,000 |
Registered agent (optional) | $50 to $600 |
Statement of authority | $50 |
Expedited processing fee (optional) | $75 |
Business license (cost varies widely by municipality; see examples) | Salt Lake City: Starts at $100 and scales up Provo: Starts at $125 and scales up |
In summation, there’s a lot to think about when forming an LLC in Utah, but it’s neither difficult nor expensive as long as you follow all the right steps. Start with getting that name picked, then file your Articles of Organization. From there, proceed with other forms and fees as necessary.
If you feel overwhelmed by the idea of getting the job done, just ask for help. Registered agents are here to make the process easy, so don’t hesitate to reach out!
The short answer is: No. Although some states level an extra charge for owning and operating a franchise business, Indiana treats LLCs the same.
Always do your research before picking a name for your LLC. Make sure it’s pertinent, easy to pronounce, and has good brandability. You should also make sure that you can find a related domain name (URL) and that it’s not too close to another business name in Utah.
In Utah, you will only pay $59 to file Articles of Organization and thereby form your LLC. If you desire, you can pay extra fees to reserve a name ($22), create a DBA ($22), or use a registered agent (cost varies).
In years to come, you will also pay to renew your LLC ($18), file an annual report ($20), and extend your DBA ($18), if necessary.
The actual formation of an LLC is simple. As soon as you file your paperwork online or through the mail and pay your $59, you’re good to go. (Note that when mailing, you aren’t official until the Department of Commerce has received and filed it.)
Utah requires a State Tax ID (analogous to the federal EIN) if you have any employees. If you’re the only member of your LLC, both state and federal regulations allow you to operate without one.
Renew your LLC annually by submitting the appropriate form and paying $18.
To dissolve your LLC, you must file a Statement of Dissolution. There is no cost.
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness. It also does not indicate any affiliation between Tailor Brands and any other brands, services or logos.
Products
Resources
@2024 Copyright Tailor Brands