Closing a Business in Utah: Everything You Need to Know

It might be challenging to decide to close a firm, but it is occasionally required for a number of reasons. There are several crucial actions you should take if you own a business in Utah and are thinking about closing it to make sure the procedure is handled correctly. We will provide you a thorough explanation of the process in this post, as well as address some connected issues. How to Terminate a Business in Utah

1. Dissolve your business entity: The Utah Division of Corporations and Commercial Code will need to receive your filed Articles of Dissolution if your company was registered as an LLC or corporation. Your company will be formally dissolved as a result.

2. Cancel your business licenses and permits: You must revoke any licenses and privileges that your company currently has with the state of Utah, such as zoning permits, business licenses, and sales tax licenses.

3. Pay off all obligations and taxes: Before dissolving your company, you must settle all outstanding debts and taxes. This includes any unpaid debts to the state and federal governments, such as loans and taxes. 4. Inform clients and staff: If you have staff, you must inform them of your decision to close the business. Additionally, you should inform your clients of the closure and make plans for any unfulfilled orders or services. How much should a lone proprietor set up for taxes?

You must pay self-employment tax as a sole owner, which is computed at 15.3% of your net income. Your business profits will also be subject to federal and state income taxes. Your business income and tax bracket will determine how much you should set aside for taxes. To figure out how much money you should set aside for taxes, it is advised that you speak with a tax expert.

The answer is yes; such an LLC is referred to as a single-member LLC. This kind of LLC enables pass-through taxation and offers the owner limited liability protection akin to that of a corporation. Can someone steal the name of my company?

You have legal protection from others using the same or a name that is similar if you have registered your business name with the state of Utah. However, trademark protection is not offered by registering a business name. You might want to think about registering a trademark with the US Patent and Trademark Office to safeguard your company name and brand. Is hiring a DBA worth the money?

A “doing business as” name, also known as a DBA, is a fictional name that a company employs in place of its legal name. If you wish to run your business under a different name or if you want to establish a distinct brand for a particular good or service, registering a DBA may be helpful. However, registering a DBA does not give your company name or brand legal protection. You must register a trademark if you want legal protection.