To begin with, you must submit a filing fee to the Utah Division of Corporations and Commercial Code. You have the option of paying the $70 fee online or by check. Additionally, you must post a notice of the establishment of your LLC in a neighborhood newspaper for three weeks in a row. Utah law requires this, and depending on the newspaper you select, the cost can range from $30 to $150.
Maintaining an LLC in Utah also comes with continuous expenses. You must submit a $20 annual report to the Utah Division of Corporations and Commercial Code every year. If you don’t submit this report by the deadline, you risk fines and potentially the termination of your LLC.
The price of engaging a registered agent is another expense to take into account. LLCs must have a registered agent in Utah who can accept legal documents and other necessary notices on the company’s behalf. Although you can serve as your own registered agent, most business owners choose to have a specialized service take care of things on their behalf. A registered agent can run you anywhere from $50 to $300 a year, although costs can vary.
Let’s go on to the second query, which concerns how Utah LLC owners pay themselves. An LLC’s owner is referred to as a “member” of the business. There are a few various ways to make payments from your LLC, but the most popular one is to “draw” money from the revenues of the business. This indicates that you may take money out of the LLC’s checking account as required to pay for personal needs. The fact that you must pay taxes on these profits as personal income should not be overlooked.
The final query is: What are the drawbacks of an LLC? While creating an LLC has many advantages, there are a few disadvantages to take into account. The fact that LLCs are subject to self-employment taxes is one of the main drawbacks. As a result, you will be liable for paying both the employer and employee components of Social Security and Medicare taxes as a member of the LLC. Additionally, LLCs are less adaptable than partnerships or sole proprietorships in terms of running the business and making decisions.
Let’s now answer the fourth query, which is, “Can a single person own an LLC?” In Utah, a single-member LLC may be established. In fact, many business owners who lack a business partner but yet desire the legal protection and tax advantages of an LLC frequently choose this route. However, keep in mind that single-member LLCs in Utah are subject to some additional regulations, such as the necessity to name a replacement in the event of your demise or incapacity.
With a filing fee of $70 and additional charges for newspaper publication and registered agent services, starting an LLC in Utah is reasonably affordable. The $20 annual report fee and associated fines for late submissions are ongoing expenses. You can withdraw money from your LLC’s profits to pay yourself, but you’ll have to pay taxes on those funds. Even though there are certain drawbacks to creating an LLC, many business owners choose it because of its adaptability and liability protection. And in Utah, a single-member LLC is a real possibility.
Yes, you can use the Internal Revenue Service (IRS) website to check for your EIN (Employer Identification Number). This is done through a tool known as the “EIN Assistant.” To finish the lookup procedure, you must have all the relevant information about your company and personal information, though.
Yes, you can use the IRS EIN Assistant service to seek up an EIN number online. Please be aware that you can only use this feature at specific times of the day. Before giving you the EIN number, the tool will additionally query you in order to confirm your identification.