How to Start a Utah LLC
Utah LLC Formation – Basics & Helpful Information
This article is meant to be a general overview of the Utah LLC formation process; including information about how to start a Utah LLC and other basic issues related to Utah LLCs.
Utah LLC Filing Fees
The Utah filing fee for the Certificate of Organization (to create an Utah LLC) is $70.00.
File the Certificate of Organization Online →Utah Filing Time
If filed online, your business will be formed within 24 hours. If you file by mail, it will be formed within 7 business days.
Utah Annual Compliance Requirements
A Utah LLC must renew annually on the anniversary of the entity’s registration. The fee for renewing is $20 with a $10 late fee if past the anniversary date.
File the Annual Renewal Online →Form an LLC in Utah
You can use this checklist to help guide you through the process of forming a Utah LLC:
Step 1: Decide on a Business Name
The first step in creating an LLC in Utah is naming your business. You’ll need to check with the Utah Department of Commerce to make sure the name you’ve chosen is available. You can do this online via the Utah Business Search.
It is also highly recommended that you check the US Patent and Trademark Office to see if someone has a federal trademark of the business name you want (the Utah Department of Commerce will not check other state’s databases or the federal trademark database). You can click here to have a comprehensive name availability search performed for you.
Your LLC name must contain the words “limited liability company” or “limited company” or the abbreviations “L.L.C” or “L.C.”.
See Utah LLC Naming Criteria →Utah DBA
Although a DBA name is not legally required, it is a wise business practice. Utah DBAs last for 3 years. The filing fee is $22.
See more info on Utah DBAs → File for a Utah DBA online →Step 2: Register your LLC with the State
Utah Certificate of Organization
Your Utah LLC is formed by signing and filing Certificate of Organization with the Utah Department of Commerce. You can also e-file the Utah Certificate of Organization. The Department of Commerce staff will examine the articles for statutory compliance and will either approve the articles for filing or reject the articles with instructions on how to resubmit the document.
The Certificate of Organization must include at a minimum:
- Name of the Utah LLC
- Statutory Agent’s Name and Address
- Principle Office Address
- Management Structure of the LLC
- Duration of LLC
- Organizer’s Name and Signature
Utah Registered Agent Information
Utah requires that the LLC have a Registered Agent (same as a Statutory Agent in other states), which is an individual or a business entity the LLC appoints for the purpose of accepting service of process (lawsuit papers or legal documents) for the LLC. An LLC cannot be its own registered agent, but the LLC can appoint one of its members as the registered agent. Utah law requires that the registered agent have a permanent, physical address on the records of the Utah Department of Commerce at all times.
Read more about Registered Agents →Step 3: Create and Sign the LLC’s Governing Document
The governing document for an LLC is called the “company agreement” or sometimes the “operating agreement”. The company agreement is to an LLC like a partnership agreement is to a partnership (or bylaws to a corporation). The company agreement governs the internal operation of the LLC and is typically a private document that is kept in the company book and the principal place of business (it is NOT filed with the state). The company agreement can address many issues, some of the more common concepts found within a company agreement are:
- Limitations on the members liabilities
- The level of consent needed to take various actions (i.e. simple majority required to add new members)
- The percentage of the LLC that each member owns
- How profits and losses are allocated between the members (typically based on ownership percentages)
- Limitations on transferability
- What each member is contributing to the LLC and what happens is such contributions are not made.
- The authority of the members, officers, managers, committees, etc.
- How meetings are conducted
One of the reasons we recommend using an LLC formation company like IncFile is that they can provide you with a company agreement in connection with their LLC formation services.
Step 4: Get an EIN
After you form an LLC in Utah, you can get the EIN. There are a few different ways to get an EIN:
- Apply Online Yourself: The IRS has an online EIN Application you can use to get an EIN. The turn around time on the EIN using this method is only a few minutes.
- Use Form SS-4: You can get an EIN the old fashion way by completing Form SS-4 and mailing or faxing into the IRS. How long does it take to get the EIN this way? According to the IRS: if you mail in Form SS-4, it will take 4-5 weeks to get your EIN. If you fax in Form SS-4 you should have the EIN back in a week if you provide a fax number or 2 weeks if you don’t have a fax number.
- Have a Third-Party Obtain: All of the LLC formation companies have the ability to get the EIN for you. The EIN obtainment charge varies by company, but it is generally between $50 and $100. If you get one of the higher priced packages, they will sometimes throw in the EIN for free.
Step 5: Get Licenses and Permits
After you create your new Utah LLC, you’ll need to determine if your business/profession requires any licenses or permits to conduct business.
Read more about Utah Licensing and Permitting →Registering a Foreign LLC in Utah
If you have a non-Utah LLC (aka Foreign LLC) and you are doing business in Utah, you may need to register the Foreign LLC in Utah. Each state has a different definition of “doing business”. In Utah, the kinds of activities that would not constitute “doing business” are outlined in the Utah Code Annotated, Section 48-3a-905.
The filing fee for the Foreign Registration Statement in Utah is $70.
See more about registering a foreign LLC in Utah →Helpful Tips & Information
Use an LLC formation service like IncFile to help you form an LLC in Utah. IncFile has free LLC formation packages (you only pay the state filing fee).
Links
Utah Department of Commerce
Utah Certificate of Organization – Paper Version
Utah Certificate of Organization – Online Filing
Utah Business Name Information
Utah Business Licensing Guide
Utah Registered Agent Information
Utah Annual Renewal
Online EIN Application (for the LLC’s Federal Tax ID)
USPTO (Federal) Trademark Search