How to Start an LLC in Utah

Utah’s educated workforce, growing economy, strong infrastructure, access to capital, and supportive government services make it an entrepreneurship haven. It’s no surprise that the state has consistently ranked as one of the top places to form a new business. 

Whether you are Utah-born or a newcomer looking to grow business roots in the state, the process of forming a limited liability company in Utah is almost the same. But it’s best to take it step-by-step to ensure it’s all done properly. From selecting a business name to filing your articles of organization, we’ll show you the right way to form your LLC in Utah.

How to create a Utah LLC in 7 steps 

The Utah Division of Corporations and Commercial Code, which is part of its Department of Commerce (DOC), oversees new business formations in the state. Their website is the hub for information about starting a Utah limited liability company, including laws and requirements. 

The next seven steps thoroughly break down the LLC formation process in the Beehive State. 

Step 1: Choose your business name

To form an LLC in Utah, you need to start by selecting a business name. Utah’s policy on naming your business requires the following considerations. 

• Mandatory descriptor. The official LLC name has to have an identifier like “LLC,” “limited liability company,” "limited company," or ”L.C.”  
• Distinguishable. The name can’t be similar to any existing or reserved business name. For instance, Utah will deem “OneoEight Cafe” and “The OneoEight Cafe” indistinguishable. Use of special characters and differences in punctuation, capitalization, and abbreviations don’t make a name distinguishable. 
• Prohibited words. The Utah LLC name can’t allude to any government agency or authority, such as “state,” “FBI,” or “Treasury.” 
• Restricted words. Using restricted terms like bank, college, escrow, trust, or Olympic requires prior approval. 

The Utah Division of Corporations offers a free business entity name search so you can check if your chosen name is available.

If the name is available and you aren’t ready to file your registration, file an Application for Reservation of Business Name. Submitting this form, along with a $22 filing fee, will allow you to hold the name for 120 days.

Step 2: Appoint a registered agent

You must appoint a registered agent for your Utah LLC. A registered agent’s responsibilities are to receive service of process, tax forms, legal documents, and all other official communication from the state or federal government. Think of them as your communications admin. 

The states set a registered agent requirement because they need a reliable way to contact you. Suppose there’s a legal case filed against your business. The courts can’t proceed without formally notifying you.

If you are willing to assume the risks involved, Utah allows you to be your own registered agent if you: 

• Are above 18 and state resident 
• Have a physical street address in the state (P.O. boxes aren’t acceptable)
• Are available during regular business hours (9 a.m. to 5 p.m.)

LegalZoom’s Registered Agent Services can handle this administrative duty, while shielding your privacy and saving you from unexpected visits from legal servers at work or home. 

Step 3: File certificate of organization

Utah LLCs are formed by filing the Utah certificate of organization, usually known as articles of organization in other states, with the Division of Corporations and Commercial Code. You can mail, fax, or file the form in person, but it’s quickest to do it online via their Business Registration portal. There is a nonrefundable processing fee of $59 for all new LLC applications.

The application requires you to list: 

• Business name and street address
• Registered agent information
• Members' names and contact 
• Business purpose
• Signature of the owner or person filing the documents 

Online applications are approved within 24 hours. Processing times for other formats can be found online or by contacting the Division’s help center. Once your application is approved, you will receive a business entity number from the department. Keep this number handy, as you’ll need it for tax and compliance purposes. 

Step 4: Create an operating agreement

The Utah Department of Commerce doesn't officially need you to have an operating agreement, but getting one will ensure a solid foundation for your business. An LLC operating agreement lays the groundwork for management and operations while protecting personal liability. An operating agreement also adds credibility to your company.

Your Utah LLC operating agreement should address issues like management structure, members’ ownership interests, roles, financial responsibilities, voting rights, rules about adding and removing members, and succession and dissolution plans. 

LegalZoom’s operating agreement service will give you the peace of mind that all matters have been addressed and you can confidently run the company.

Step 5: Obtain an EIN and open a separate business bank account 

The first step towards being a financially responsible small business owner is to get a federal employer identification number (EIN) from the Internal Revenue Service (IRS). EINs allow you to hire employees, pay federal taxes, and open a business bank account. An EIN also protects you from identity theft, as you no longer have to use your SSN for business or federal tax purposes.  

Get an EIN using LegalZoom’s EIN service. We guarantee accurate filing—fill out a quick questionnaire and we will get back with a confirmed EIN for your business. 

When you open a dedicated business bank account, you separate personal and business finances. This draws another line between you as a person and your business entity and increases your personal liability protection. A separate business bank account also allows you to maximize your business' finances, as it's a lot easier to track income and expenses, prepare financial statements, and claim business deductions.

Step 6: Register for state taxes and business licenses

Next, register your LLC with the Utah State Tax Commission via Taxpayer Access Point (TAP). This centralized portal allows you to register for all applicable taxes, such as sales and use tax, state income tax, and payroll tax (if you hire staff). Once completed, you will receive your state sales tax number and license. 

Proper business licenses and permits build your reputation as a safe and law-abiding business. The required licenses and permits vary based on locality, industry, and size. Utah Department of Commerce's Business Education hub provides applicable licensing websites for all counties, cities, and towns. If your Utah LLC provides professional accounting or real estate services, you can identify and apply for licenses through the Utah Division of Professional Licensing.

Additional local and county-level permits may also be required. For instance, if you’re opening a daycare, you'll need a zoning and health permit from local authorities. The City Clerk's Office or website is a good starting point for this information, or you can use LegalZoom’s Business License Lookup tool. Tell us a bit about your business, and we'll get back to you with all the licenses and permits you need.

Step 7: File the Beneficial Ownership Information Report (BOIR)

To combat financial crimes like money laundering and human trafficking, the federal government has introduced a new mandatory step for all small businesses in the U.S. The BOIR requires all LLCs to submit a report identifying their company’s beneficial owners. 

Utah LLCs formed in 2024 have 90 days post-date of formation to file their report. However, starting Jan. 1, 2025, the filing timeframe will be reduced to 30 days. 

This report has no filing fee, but there are serious repercussions, including civil and criminal penalties, if you forget or delay this step. Using LegalZoom to file your BOIR can save you from paying $500+ in daily fines. 

What to do after forming your Utah LLC

There are some to-dos to take care of after you have formed your LLC in Utah. These will ensure your LLC continues to run efficiently and effectively.

Register domain name

A matching domain name allows you to build a website that establishes credibility and increases visibility while serving a 24/7 marketing avenue. Once you have chosen an available domain name, you can purchase the name for a nominal fee from domain name registrars like Wix, GoDaddy, or Namecheap.

Expert tip: If the exact match isn't available with a .com extension, consider alternatives like .biz or .net.

Obtain a certificate of good standing

Getting a certificate or letter of good standing for your Utah LLC shows the world that your company is following the law, compliant on tax and other financial matters, and is simply doing things right. In many cases, a potential partner, vendor, or even client may request you to show your certificate before they engage in business with you.

To get your certificate, go to the Utah Division of Corporations' business portal and select "Purchase certificate of existence." The filing fees are $12. If you need this document on the double, you'll have to pay an additional $75.

Buy business insurance

Business insurance provides liability protection. There are various kinds of insurance, some of the most common ones being:

• General liability insurance. The most basic insurance that protects against injury and property damage claims. 
• Professional liability insurance. Helps cover claims if a client accuses you of making a mistake that harmed their business—like missing a deadline or making an accounting error. 
• Product liability. Protects against injuries caused by a faulty product. 
• Workers' compensation. Helps pay for medical bills and lost wages of an employee who is injured at work.

Consider a foreign LLC

If your business expands beyond Utah borders, consider applying for foreign authorization. Contrary to popular belief, as per U.S. law, a foreign LLC is a company conducting business outside its original formation state and not in another country. Suppose you live in Utah and open a warehouse in Arizona. Foreign authorization gives you the stamp of approval to conduct business in Arizona.

Do note that you'll need to register as a foreign LLC in every state you conduct business in. While this might seem expensive, it opens the door to limitless growth and opportunity.

Apply for a business credit card

There are startup costs with all LLCs, and a business credit card is a fast and simple way to access funding for small to mid-sized needs. One of the top advantages of a business card is that it helps you establish business credit while giving you another way to separate business and personal expenses.

Hire legal representation

Writing employment contracts, abiding by local compliance laws, resolving ownership issues or liability claims, submitting license renewals, and claiming the right business expenses—there are a lot of decisions you need to make as an LLC owner. By hiring a business attorney, you can get proper legal guidance on all these matters and more. 

Annual report filing requirements for Utah LLCs

Utah law mandates all LLCs to renew their registration by filing an annual report. The annual report, or business renewal form, for your domestic limited liability company, is due on your formation date (found on your certificate of organization or using the business information lookup tool). Have your business entity number and renewal ID ready for annual report renewals. The renewal ID will be mentioned in the renewal notice sent to your registered agent's address.

You can file the annual report up to 60 days before the official due date online, via mail or fax. As of July 1, 2024, the report filing fee for an LLC is $18. 

The cost of forming an LLC in Utah

The minimum cost to form an LLC in Utah is $59 because those are the filing fees, but the range can be as high as $400–$500. There are multiple cost considerations you should expect and budget for.

• Formation fees. It costs $59 to file a Utah certificate of organization.
• Business name reservation. Business name reservations cost $22 for 120 days. You can renew the name reservation for another 120 days for $22.
• Doing business as (DBA). If you decide to run your business under a different name than your LLC’s legal name, you must apply for a Doing Business As (DBA) certificate. In Utah, the DBA is known as Assumed Name. The filing fee is $22.
• Registered agent costs. Registered agent services can cost anywhere between $100–$300. While you can save on this expense by listing yourself, it's easy to cover up this investment. Delegating this time-consuming administrative role to a professional registered agent allows you to focus on core activities like bringing in customers and driving sales.
• Business license expenses. The cost of a business license depends on your locality and how many licenses you require. For instance, in Salt Lake City, the new businesses are required to pay $100 for a city business license. Other cities don't have general business license requirements but have mandates around obtaining specialty professional licenses or permits. Professional licenses range from $20 for a barber apprentice license all the way to $330 for an alarm company.
• Business insurance cost. According to NEXT Insurance, the average cost for general liability insurance in Utah is $46 per month. The cost changes based on industry risk, number of employees, and coverage limit.
• Federal and state taxes. All LLC owners have to pay federal self-employment tax of 15.3%. As of 2024, the Utah State Tax Commission imposes a flat 4.55% income tax rate on earnings. The sales and use tax ranges between 6.35%–9.35%, depending on the locality. If you opt to file your LLC's taxes as a corporation, there's 4.65% corporation franchise and income tax. 
• Legal expenses. If you decide to get legal help for your Utah LLC formation, budget another $250–$300 in legal costs. Lawyers implement several different pricing strategies, and a lot depends on their expertise, location, and case complexity. 

How to start your LLC with LegalZoom

Utah has a relatively simple seven-step process for forming an LLC. However, within each stage, there are a lot of “to-dos” that one can easily miss or make errors in. Working with a company like LegalZoom for your Utah LLC formation can ensure that all the steps are performed correctly. Some of the top services included in our different formation packages include conducting a name check, securing an EIN, and providing access to bookkeeping tools. 

FAQs

What are the benefits of forming an LLC in Utah? 

Utah is a business-friendly state with a strong economy and workforce. Utah LLC offers multiple advantages, from increased trustworthiness, limited liability protection, tax advantages, and flexibility in management and ownership. Plus, setting up an LLC in Utah is easy and affordable. The certificate of organization filing fee is just $59.

How do I correct filing errors in Utah? 

Login to Utah’s Business Registration Information Change dashboard using your Access ID and business entity number. You can change your address, registered agent information, or member details. Online changes are processed and reflected on your business’ public records within two business days. You can also make changes via a paper form, but these amendments have a longer processing time. A $13 nonrefundable filing fee is applicable.

There's a different procedure if you want to change your official certificate of organization. For example, to change a business name or go from member-managed to manager-managed LLC, you need to file an Amendment to the Certificate of Organization form.

How do I dissolve a Utah LLC? 

There are two ways to dissolve or terminate your Utah LLC. You can use an online dissolution service or submit a Statement of Dissolution or Statement of Termination form to: Division of Corporations and Commercial Code, P.O. Box 146705, Salt Lake City, Utah 84114-6705. Ensure that all business taxes and debts are paid before submitting the form.  

How do I decide the best legal structure for my Utah business? 

The Utah Division of Corporations and Commercial Code offers new budding entrepreneurs to form the following legal structures—an LLC, partnership, corporation, S corporation, and even a professional limited liability company (PLLC). Each business structure has its own pros and cons. For most small business owners, forming an LLC is the best. It's simple and offers flexibility and control while not having excessive compliance requirements.

Rudri Bhatt Patel contributed to this article.