Utah LLC: How to Start an LLC in Utah in 7 Steps

Are you thinking about starting your own business in Utah? If you’re leaning toward setting up a Limited Liability Company (LLC), you’re on the right track. Creating an LLC is essential, easy to set up, and offers legal protections. Don’t worry if you’re new to this; we’re here to guide you through the steps to get your LLC up and running in Utah.

Here are the steps you need to follow to form a Utah LLC.

Step 1: Choosing a Name for Your LLC

First things first, your LLC needs a name. Utah’s Naming Rules 101:

• Include ‘LLC’ Words: Your name must have “Limited Liability Company,” “LLC,” or “L.L.C.” in it. It’s like a secret handshake that tells everyone you’re an LLC. 
• Avoid Certain Words: Steer clear of words like “corporation,” “incorporated,” “limited partnership,” or anything that makes it sound like something it’s not. Also, “cooperative” is off-limits unless you’re a non-profit agricultural co-op. 
• Avoid Government Names: Avoid names that sound like you’re part of the FBI or any government agency. 
• Be Unique: Your name can’t be a twin to any existing business in Utah. Think of it like having a unique username for a video game.What Makes a Name Unique?
  • Different keywords: “Diana’s Creations” vs. “Diana’s Delights”.
  • Mix up the order: “Windows Wash” vs. “Wash Windows”.
  • Get creative with spelling: “Diana’s Cre8ns”.
  • Play with meanings: “Capital Builders” vs. “Capitol Builders”. 
• What Doesn’t Count for Being Unique:
  • Don’t rely on small differences like using “and” vs “&”, punctuation marks, capitalization, singular vs plural, or joined vs separated words. For example, “USAphones” vs. “U.S.A. phones” won’t cut it.
    
• Special Permission for Restricted Words: If you’re using certain words, you might need a thumbs-up from a relevant agency. 

List of Restricted Words
“College” “Institute” “University” “Institution”	“Industrial Loan Corp.” “ILC” “Thrift” “Credit Union”
“Olympic” “Olympiad” “Citius Altius Fortius”	“Trust” “Trustee” “Trust Company”
“Bank” “Banker” “Banking” “Banc” “Banque” “Banco” “Bancorp” “Bancorporation” “Bankcard” “Bancard”	“ESCROW” or “escrow”
“Savings Association” “Building Association” “Savings and Loan Assoc.” “Building and Loan Assoc.” “Savings Bank”

Check if Your Name is Available:

• Utah State Name Search: Ensure no one else has snagged your cool name.
• Domain Check: See if your name is available as a website domain. You want to make sure your LLC can have a matching online!

And there you have it! If you are thinking about getting a website name that matches your business name, You can find good deals for your website domain names on Namecheap.

Step 2: Appointing a Registered Agent in Utah

Your LLC needs a Registered Agent in Utah. This person or company will handle all your important paperwork. They must have a Utah address and be available during business hours. Remember that while someone in your LLC can be the Registered Agent, their address will be public. Alternatively, you can use a legal service specializing in this area, services to Complete the Formation Process. You can bypass these six steps using a third-party service such as Northwest Registered Agent or Bizee.

Step 3: File Your Articles of Organization

This is the official start of your LLC. Here’s what you need to know:

• Form Details: Here’s what you need to include in your Articles of Organization:
• LLC Name: Write the full legal name of your LLC. Don’t forget to add “LLC” or “Limited Liability Company” at the end.
• Mailing Address: If you get mail somewhere different from where your business is, put that address here.
  
• Registered Agent: This is the person who will get all the official papers for your LLC. Write down their full name, company name, address, and phone number. Make sure they agree in writing to be your Registered Agent.
  
• Management Structure: Tell if your LLC will be run by its members (you and any partners) or by the managers you pick. List their names and addresses. Remember, this info will be public, so you can use a P.O. box for addresses.
  
• Purpose: Write a short description of what your business will do.
  
• LLC Organizer: This person or company fills out and sends in your LLC’s paperwork. They’re really important for setting up your LLC right. 
• Formation Date: When will your LLC officially start? It can be right when you file this form or choose a date (up to 90 days later). 
• Signing: After you double-check everything, sign and date the form. Make sure your Registered Agent has agreed to their role. 

How Much It Costs:
File Certificate of Organization with the Utah Department of Commerce will cost $54

How to Send Your Form:

• Online: via Utah’s OneStop Business Registration Site: https://secure.utah.gov/account/log-in.html 
• By Mail: Mail or Deliver in person to: Utah Division of Corporations & Commercial Code P.O. Box 146705 Salt Lake City, UT 84114

Step 4: Make Your LLC Operating Agreement

Let’s talk about setting up some ground rules for your business. This is where an Operating Agreement comes in. Think of it like a handbook that explains how your business runs. It’s important because it helps everyone understand their role and what’s expected in your LLC.

Here’s what an Operating Agreement usually includes:

• Ownership: This part talks about who owns what percentage of the business.
  
• Member’s Rights and Responsibilities: Here, you’ll write down what each person in the LLC can and cannot do and what they’re responsible for. It’s like a job description for each member.
• Joining & Leaving: This section is all about how new people can join your business and what happens if someone decides to leave. It’s good to have this figured out so there are no surprises later.
• Dissolution: This might sound a bit gloomy, but it’s practical. It’s about how to close down the LLC if you ever need to. It includes the steps to take and how to handle everything when wrapping up the business.

Creating an Operating Agreement is a smart move. It keeps things clear and organized so everyone knows what to expect. It can save you a lot of headaches! 

Step 5: Getting Your Utah EIN

Your business needs a number called an EIN from the IRS. It’s like an ID number for your business. This number will help you as an identification number when getting bank accounts, credit accounts, filing taxes, and hiring employees.

 It’s free, and you can get it from the IRS website at https://www.irs.gov/businesses/small. 

Step 6: Get the Right Permits and Licenses

Understanding the Rules:

Every business, including LLCs, needs to follow specific rules set by the government. Think of these like the rules of a board game – they’re there to ensure everything runs smoothly. For instance, if you’re opening a restaurant, you’ll need health permits, permission to put up signs, and a few other licenses.

It’s Different in Every State:

Remember, what you need in Utah might differ from what someone needs in another state. So, it’s essential to focus on Utah’s requirements.

Fees Can Vary:

Like how different things cost different amounts, the fees for business licenses and permits can also vary. It depends on what kind of permit or license you’re applying for.

Getting Your Utah LLC Business Licenses and Permits:

Here’s a quick guide on what you might need:

• Utah State Business License:
  • Seller’s Permit: This is a big one in Utah. You’ll need this if you’re selling or leasing goods or services that are taxed.
  • Specific Industries: Some businesses, like those in healthcare or construction, may need extra licenses or permits.
• Federal Licenses & Permits:
  • Regulated Activities: If your business deals with alcohol, wildlife, or broadcasting, you might need a federal permit. Check out the U.S. Small Business Administration guide for more details: Utah Government City & County.
• State Licenses & Permits:
  • Tax-Related Permits: This includes things like sales tax, withholding tax, and fuel taxes.
  • Specific Industries: If you’re in businesses like alcohol or tobacco, you’ll need special permits. The Utah Division of Professional Licensing has all the info: Utah Division of Professional Licensing.
• Local Licenses & Permits:
  • City and County Requirements: Different cities and counties might have their own rules, so check with your local government. Here’s where you can find more info: Utah City & County Government. 

A Tip for New Entrepreneurs:

If all this sounds overwhelming, especially if you’re new to running a business, get help from a professional service like Northwest Registered Agent. They can research what specific licenses and permits your LLC needs, saving you a lot of time!

Utah LLC Tax Requirement: What You Need to Know

Utah Seller’s Permit (Sales & Use Tax):

• What’s This? If you plan to sell products or digital services, you’ll need this permit. 
• Why You Need It: It allows your business to collect sales tax on the product or service you sell.
• What’s Taxed: This tax is added to most things you sell, and it’s not just a state thing – counties and cities get in on it, too.
  

Utah Employer Taxes:

• Unemployment Insurance Tax: This one’s a safety net for your employees if they lose their jobs. Register through the Utah Department of Workforce Services.
• Employee Withholding Tax: This is about income tax for your employees. You’ll register for this through Utah’s Taxpayer Access Point.

Reporting Income to the IRS:

• Multi-Member LLCs: Use Form 1065, the Partnership Return.
• Single-Member LLCs: You’ll likely use Form 1040 Schedule C.

Annual Report/Renewal:

• What Is It? Each year, your LLC needs to file an Annual Report/Renewal with the State of Utah.
• Online or Mail: Choose your adventure – do it online or the old-fashioned way.
• The Cost: It’s $18.
• When’s It Due? On the date your LLC was made. 
• Late? There’s a Fee: If you miss the date, there’s a $10 late fee.

Important: Failing this can lead to losing your LLC’s protections and privileges in Utah. 

 

Understanding the New BOI Reporting in 2024 for LLCs

What’s New and When Does It Start?

Starting January 1, 2024, all LLCs, including those in Indiana and other States, must comply with new federal reporting requirements. These are designed to enhance transparency and ensure everyone knows who’s running the show in businesses.

Important Dates and What They Mean for You

• Effective Date: Mark your calendars – these rules take effect from January 1, 2024.
• Reporting Deadline for Existing LLCs: If your LLC was set up before 2024, you have until January 1, 2025, to submit your first report.
• New LLCs: For those starting an LLC in 2024, your first report is due within 90 days of forming your company.

Who’s Included?

• Domestic LLCs: If your business is based in the US, these rules apply to you.
• Foreign Entities: Foreign registered companies in Florida are also included.

Are There Exceptions?

Yes, there are certain exceptions. Detailed info is in the Beneficial Ownership Information Reporting Regulations at 31 CFR § 1010.380(c)(2).

What Do You Need to Report?

In a nutshell, you’ll need to report details about who owns and controls your LLC. Think of it as the who’s who of your business. For the nitty-gritty details, check out the compliance guide.

How to File Your Reports and Avoid Penalties

• Filing Your BOI Report
• When to File: All reports must be filed electronically starting January 1, 2024. Remember, filing before this date isn’t allowed.
• Accuracy is Crucial: You must certify that the information in your report is accurate. Double-checking is your friend here!
  

The Consequences of Getting It Wrong

• False Information Penalties: Mistakes or misinformation can lead to a fine of up to $10,000 or up to 2 years in prison.
• Focus on Education: The Financial Crimes Enforcement Network (FinCEN) emphasizes helping businesses understand and comply with these rules.
• Have you got It Wrong? Fix It Fast: If you realize a mistake in your report, you have 90 days to correct it without penalties.

If you need more information or specific guidance, please visit the FinCEN website for all the details.

 

What to Do After You’ve Started an LLC 

Open a Separate Business Bank Account: Keeping your personal and business money apart is super important. Mixing them up can cause significant problems, like losing the protection of having an LLC. This mix-up is sometimes called “piercing the corporate veil,” it can put your personal stuff, like your car or house, at risk if your business runs into trouble. To open a business bank account, you’ll need:

• Your LLC’s Articles of Organization.
• Your Operating Agreement.
• Your Employer Identification Number (EIN).

When picking a bank for your business, consider the fees, minimum deposits, and the benefits (like earning interest) they offer. Look for features that help your business, like using a debit card to pay for things.

Get a Business Credit Card

A business credit card is an excellent tool for handling business purchases and can help build your company’s credit history. Just like with personal credit, a good business credit score can make it easier to get loans and may qualify you for better terms. Visit our website to see our favorite business cards review. 

Check out our blog: Novo Review: The Best Business Banking Account in 2024.

Set Up Your Finances Right: Use good habits to track your money. This means not mixing your cash with your business’s. Good record-keeping makes tax time less stressful and helps avoid problems with the rules. You should use a program like QuickBooks to track your money, inventory, payroll, and sales. Talking to professionals like accountants or business lawyers is also intelligent, especially in understanding Indiana’s tax rules. Find experts who know a lot about the area where your business is.

Create a Professional Website: Having a website makes your business look legit. WordPress is a great tool for building your site. For web hosting, you can check out SiteGround or Hostinger. They’re both excellent options for getting your site up and running.

Announce Your Business with a Press Release: A press release is an excellent way to promote your new business and attract customers.

Starting your Utah LLC is exciting, and with this guide, it’s also easy and budget-friendly. Each step is straightforward and helps lay the foundation for your business success. Remember, you’re not alone in this. There are resources and services like Northwest Registered Agent or Bizee that can help guide you through the process.

 

Northwest Registered Agent

Northwest Registered Agent Pricing: What to Expect

Northwest Registered Agent keeps pricing simple. They have a clear, straightforward fee structure, which is a big plus. No hidden fees or surprises – that’s the kind of honesty we all appreciate, right?

Why is Their Pricing Affordable?

• Transparent Costs: They tell you exactly what you’re paying for so you can make informed decisions.
• Competitive Rates: Their prices align with your expectations for top-notch services, ensuring you get good value.
• One-Stop Shop: Since they offer a whole suite of services, you can bundle things together, potentially saving time and money.
• Location: They’re headquartered in Spokane, Washington, but don’t worry – they have offices in all 50 states. So, wherever you are in the U.S., they’ve got local expertise ready for you.
• Experience Counts: These folks have been in the game for over 20 years. That’s a lot of experience under their belt, helping businesses like yours start and grow.

Core Services

• LLC Formation: Dreaming of starting your own LLC? They can help make that happen.
• Registered Agent Service: The main event – they’ll be your reliable point of contact for all those essential legal documents.
• Address Privacy: Keep your address off the public records. It’s all about your privacy.
• Lifetime Customer Support: Got questions? They’re there for you, not just today, but for the life of your business.
• Annual Report Reminders: Never miss a deadline with their handy reminders.
• Online Document Dashboard: All your important documents are organized in one easy-to-access place.

Additional Services (Because There’s Always More)

• EIN Number: They can help you get your business’s unique tax ID.
• Annual Report Service: Let them handle your annual reporting needs.
• Operating Agreements: Need help with the rules for running your LLC? They’ve got you covered.
• Virtual Office Service: Get a professional business address without the office.
• S-Corp Election: Thinking about S-Corp status? They can help with that.
• Mail Forwarding Service: Keep your mail organized and forward it where needed.
• Foreign Qualification: Expanding your business to new states? They can assist.
• Legal Forms: Access a variety of legal forms easily.
• Legal Services (in Indiana): If you’re in Indiana, they’ve got specific legal services just for you.
• Incorporation Services: More than just LLCs, they can help incorporate your business, too.

So, if you’re looking to create an LLC, Northwest Registered Agent is like having a wise old friend in the industry. They ensure everything runs smoothly, keeping you focused on what you love – growing your business.