One of the few states that accepts Series LLC or SLLC is Utah. One of the first states to embrace this kind of LLC was Utah, when the state legislature passed the Series LLC Act in 2011. With a series LLC, a business owner can divide their LLC into different series or cells, each with their own assets, liabilities, and members. These series are capable of functioning separately, insulating them from the hazard of a single series.
You must submit Articles of Organization to the Utah Division of Corporations and Commercial Code in order to establish a Series LLC there. Along with other relevant information, such as the name and address of the LLC’s registered agent, this document should specifically state that the LLC is a Series LLC. A Series LLC must pay a filing fee of $70.
You must make distinct series or cells inside the LLC after creating the Series LLC. Each series needs a unique name, goal, and participants. Additionally, you must sign an operating agreement that outlines the duties and responsibilities of the entire LLC as well as each series. The Operating Agreement should state that the LLC is a Series LLC and lay out rules for how the series can function independently and indemnify one another against claims. Series within an LLC
A series in an LLC is a distinct entity with its own members, liabilities, and assets. Because each series may function separately, there is more flexibility and risk control. Although all of the series are still a part of the overall LLC, each series is treated as an independent corporation for tax purposes. Comparison of an LLC and a sole proprietorship Your company’s demands and objectives will determine whether you should choose an LLC or a sole proprietorship. The simplest and most affordable business structure is a sole proprietorship, but it doesn’t provide liability protection. In contrast, an LLC offers its members liability protection while maintaining flexibility and simplicity. An LLC can also have more than one member, but a sole proprietorship can only have one. LLCs in Utah are Taxed
Utah taxes LLCs as pass-through entities, which means that the revenue of the LLC is distributed to its members and subject to individual taxation. Furthermore, Utah levies a 4.95% flat state income tax on all taxable income. LLCs may also be obliged to pay self-employment tax in addition to being liable to federal income tax.
Finally, Utah recognizes Series LLCs and permits them since 2011. You must submit Articles of Organization to the Utah Division of Corporations and Commercial Code in order to establish a Series LLC there, as well as establish distinct series or cells inside the LLC. Series in an LLC are discrete, autonomous entities that enable more flexibility and risk management. In contrast to sole proprietorships, LLCs offer liability protection for their members while maintaining flexibility and ease of use. Utah LLCs are subject to both state and federal income tax as pass-through businesses.
Unfortunately, there is no free way to form an LLC in Utah. In order to create an LLC, filing fees must be paid to the Utah Division of Corporations and Commercial Code. However, in comparison to other states, the fees are rather reasonable. In addition, a number of online firms offer formation assistance in exchange for a charge. It’s crucial to remember that, despite Utah’s present prohibition on Series LLCs, it would be possible to set up a conventional LLC with numerous subsidiaries. It is advised that you speak with a legal expert to choose the right business structure.
If you file online and pay the standard processing charge, an LLC formation in Utah typically takes 5-7 business days to process. However, if you require your LLC to be formed more quickly, accelerated processing options are offered for an extra cost.