One common choice for people wishing to launch a business in Utah is to create a limited liability company (LLC). An LLC offers the flexibility of a partnership while simultaneously protecting its shareholders from personal liability. Here is a guide to assist you in setting up an LLC in Utah. How to Create an LLC in Utah
1. Pick a Name: Picking a name for your company is the first step in creating an LLC in Utah. Your chosen name must be original and not in use by another company in Utah. Using the online company name search tool provided by the Utah Division of Corporations and Commercial Code, you may determine whether the name you want is available.
2. Designate a Registered Agent A registered agent is a person or corporation that consents to accept legal documents on your company’s behalf. This person must be reachable during regular business hours and have a physical address in Utah. Although you are free to act as your own registered agent, it’s typically preferable to use a specialized service.
3. Submit the Articles of Organization: The Utah Division of Corporations and Commercial Code is where the Articles of Organization must be submitted in order to establish an LLC there. This document contains the fundamental details about your company, including its name, address, and registered agent. The filing fee is $70, and both online and postal filing are acceptable.
4. Draft an operating agreement. This is a legal document that describes how your LLC will be managed, including how earnings and losses will be distributed among members. Although an operating agreement is not required by Utah law, it is a good idea to have one in place to prevent disputes and make sure everyone is on the same page. Utah State Certificate of Existence A Certificate of Existence is a document that attests to the fact that your company is legitimately registered with the state. When requesting specific business licenses or permissions or conducting business with other businesses, you might need a Certificate of Existence. A Certificate of Existence can be obtained from the Division of Corporations and Commercial Code in Utah. A Certificate of Existence can be purchased online or by mail for $20. LLC versus S Corp
There is no one-size-fits-all solution when it comes to deciding between an LLC and a S Corp. The proprietors of both corporate entities are protected from liability, but their taxes and ownership models are different. An S Corp could provide tax advantages for certain organizations, although an LLC is often simpler, cheaper, and easier to establish up and maintain. A lawyer or accountant should be consulted before making a choice.
Depending on the kind of business structure you select, Utah incorporation costs change. The filing fee for an LLC is $70. The filing fee for a corporation is $225 for foreign firms and $70 for domestic corporations. Additionally, there can be charges for things like annual reports and name reservations. Budgeting for these expenses is a good idea when opening a business in Utah.
In conclusion, creating an LLC in Utah is a simple procedure that can offer business owners flexibility and protection from personal liability. You may quickly start your business by following the instructions provided in this guide. Don’t forget to seek out specific advice and direction from a lawyer or accountant.