Building your Utah LLC may come with some costs you didn't expect, which can leave you unprepared and affect your bottom line.
To help you save time, we have spent months researching the costs and requirements to form an LLC in Utah.
In this article, we will review all the costs of building an LLC in Utah to create a smooth transition into your new business.
Quick Summary
- The Utah LLC state filing fee is $54 for your Certificate Of Organization.
- Utah also charges an $18 annual report fee for any Utah LLC that must be paid 60 days before your business expiration date.
- There are many other cost factors involved with a Utah LLC, including foreign LLC registration and Operating Agreement.
How Much Does An LLC Cost In Utah?
An LLC In Utah costs $54. This fee is to register your Utah LLC and file your Utah Certificate Of Organization with the Utah Department of State.
You can file your Utah certificate in person, via mail, fax, or online at the OneStop Business Registration website [1].
The Utah Department of State offers expedited processing for $75 per filing.
When establishing an LLC in Utah, you should be aware of some additional filing costs you may need to pay.
Utah LLC Filing Fee
The Utah LLC filing fee is a $54 one-time filing fee for your Certificate Of Organization.
For an LLC in Utah, an $18 annual report fee must be filed to keep running your Utah business. You can file a report online with the Utah Department Of Commerce.Â
Any annual reports not filed on time will have a $10 late fee per renewal. Your annual report fee must be paid within 60 days before your business expiration date [2].
Utah Registered Agent Service Fee
Utah law requires you to choose a registered agent when filing for your LLC. A registered agent accepts legal documents and notices for your Utah LLC.
The registered agent must have an address in Utah and be available during regular business hours.
You can choose to be your own LLC's registered agent or hire a registered agent services.
If you choose yourself as your registered agent service, you will need to have a Utah address which will be made public, and you are required to be available every day of the week all year.
Hiring a registered agent service will come with a Utah registered agent fee between $50 to $300 a year.
Hiring a registered agent is necessary if you don't have a Utah address or can't feasibly be your own registered agent.
Utah Business/ License Tax
Utah doesn't have a statewide business license for an LLC; however, the Utah Division of Government does issue sales tax registration which is required if your Utah LLC will be selling tangible property or services.
Most Utah cities will require your Utah LLC to get a general business operating license; however, each city has its own costs and requirements.
You may also need a specialty LLC business license for a regulated profession.
Depending on your industry, you may also need to pay taxes for your Utah LLC, including sales tax, use tax, or fuel tax.
You can apply for tax permits online through the Utah State Tax Commission [3].
Other Utah LLC Cost Factors
There are various factors included in the Utah LLC cost, including:
1. Name Reservation
To reserve a business name for Utah LLCs, you must submit an application and a $22 fee. Name reservation prevents any other Utah LLCs from using your company name before you register it. Your reservation lasts for 120 days.
Before reserving a name, look up an LLC in Utah and check if it is available using the Utah Business Name Search [4].
2. DBA Name
If you are considering doing business under any name than your legal business name, you must register a Doing Business As Name, which costs $22.
Your business can register as many DBA names as you would like.
3. Certified Copies
You can order certified copies of your Utah LLC documents from the Utah Division of
Corporations, including your Certificate of Organization, Operating Agreement, professional licenses, and more, for $12 plus $.30 per additional page.
Certified copies can be ordered online, by phone, or in person at the Division of Corporations.
4. Certificate Of Existence
In Utah, a Certificate of Existence is the same as a Certificate of Good Standing. You can order a Certificate of Existence for $12 for the short form and $20 for the long form through the Utah Tax Commission.
An LLC is required to provide a certificate of existence if creating a business bank account or registering as a foreign LLC in another state.
5. Certificate Of Authority
A business is required to register a Certificate of Authority with the Utah Department of Commerce before doing business in Utah.
A company that is incorporated in another state will need this Certificate.
They will also need it if they have employees within Utah. The cost of this Certificate issued by the Utah Department of Commerce is $15.
6. Employer Identification Number
An employer identification number (EIN) costs $0 to file and can be done online, via mail, or phone through the Internal Revenue Service.
You will need LLC members' full legal names and addresses, social security numbers, your formal business name, and more.
Utah Foreign LLC
When creating a foreign LLC in Utah, you will need to pay the $54 state filing fee.
Paying the fee and filing an application for the creation of a foreign LLC in Utah will expand your LLC into the state. Filing is available online, by mail, or in person.
You will also need to register your foreign LLCs and pay for all tax and business licenses for your specific business before you can start doing business with your limited liability company in Utah.
FAQs
Is Utah A Good State To Register An LLC?
Yes, Utah is a great state to register your LLC. The Utah LLC fees are meager, there is a lot of labor supply, and the regulatory environment is relatively unrestricted. They also don't require a specific business license for every business, and the overall LLC cost is low.
Does A Utah LLC Pay Taxes?
Yes, a Utah LLC pays taxes. Corporate income tax in Utah is 5 percent. You will pay this tax if your LLC is taxed like a corporation. You may also have to pay other taxes, such as unemployment tax and federal taxes, and apply for a sales tax license depending on your business.
Does Utah Allow Single Member LLCs?
Yes, Utah allows both single-member and multi-member LLCs. For most purposes, a single-member LLC and a multi-member LLC are considered the same, but a single-member LLC has some additional flexibility with filing taxes.
How Long Will My Utah Business License Last Before Expiring?
A Utah business license usually lasts anywhere from one to three years before expiring.
How Much Do I Have To Pay To Reinstate My Utah LLC?
To reinstate your Utah LLC, you will have to pay the same as the general registration fee, $54. This is the only fee necessary to reinstate your LLC.
How Does Utah Tax LLCs?
Utah taxes LLCs at 5 percent, which is the statewide flat income tax rate.
Do You Need An EIN For Utah?
You won't need an EIN for the state of Utah unless your business is registered as a partnership, multi-member LLC, or corporation or you have employees.
What Data Do I Need To Open A LLC In Utah?
To open an LLC in Utah, you will need your LLC name, registered agent, LLC member information, Certificate of organization, the application, and the state filing fees.
Is There A Penalty For Paying My State Fees Late In Utah?
Yes, there is a penalty for paying your state fees late in Utah. If you don't pay the fees on time, the Utah Department of Commerce can charge you a late fee and revoke your LLC registration. You may also be subject to other penalties if you run your LLC with an unregistered name.
What Payment Methods Can I Use To Pay Utah's State Fees For Filing My LLC?
The payment methods you can use are cash, check, or credit card. Cash can be used if paying in person; a check can be used in person or via mail, and credit cards can be used in person or online.
Is There A Way To Start My LLC In Utah For Free?
No, you can't start an LLC in Utah for free. You are required to pay the $54 LLC costs to register your LLC in Utah. You can reduce your LLC costs by filing your paperwork yourself, being your own registered agent, etc.
How Long Does A DBA Last In Utah?
A DBA in Utah lasts three years. After three years, you will have to renew your DBA and pay the fee to renew the name with the state.
Do You Need Professional Help With Your Utah LLC?
Utah is an excellent state for forming an LLC because its registration, renewal, and overall costs are meager compared to other states.
Besides the benefit of low cost, they have a relatively unrestricted regulatory environment and decent labor supply.
Being your own registered agent and handling all the paperwork required for an LLC can be overwhelming.
If you can't be available during regular business hours every day of the year, consider using an LLC formation service. These Utah LLC formation services can help your business through every step of the process.
The LLC formation service can manage your Operating Agreement, Certificate of Organization, filing fees, business name registration, and liability protection, so you have more time to focus on your business entity.
References:
- https://corporations.utah.gov/business-entities/considerations-in-forming-a-limited-liability-company/
- https://www.corporations.utah.gov/renewal-process/
- https://tax.utah.gov/business
- https://secure.utah.gov/bes/index.html
