How to Change Ownership of a Business in Utah

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How do I change ownership of a business in Utah?
Utah LLCs have to file a completed Articles of Amendment to Articles of Organization form with the Division of Corporations and Commercial Code. You can submit by fax, mail, or in person. If you choose to fax the document, you will need to attach a Fax Cover Letter. The filing of an amendment comes with a $37 fee.
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In Utah, changing a company’s ownership can be a challenging process. The procedure for selling a business in Utah will be covered in this article. We’ll also go over how to dissolve a corporation in Utah, why you should choose a S corporation over a C corporation, and the advantages of doing so. Transferring a Business’ Ownership in Utah:

1. Examine the Operating Agreement: Examining the operating agreement is the first step in transferring ownership. The policies and guidelines that control the business are described in this document. The agreement may include particular clauses relating to ownership transfer.

2. Obtain Other Owners’ Consent: If there are other owners, they must give their approval for the ownership transfer. Usually, a written agreement is used to do this. 3. Create a bill of sale: A bill of sale is a formal document that transfers ownership of a company. The names of the buyer and seller, the purchase price, and other information about the transaction should all be included. 4. Submit the Required Documentation: You must submit the required documentation to the Utah Division of Corporations and Commercial Code. This could comprise a certificate of ownership, a certificate of good standing, and articles of amendment.

Dissolving a Corporation in Utah:

There are a few steps you must do if you desire to dissolve your corporation in Utah:

1. Hold a Meeting: The first stage in the dissolution process is to call a meeting of the board of directors or shareholders.

2. Submit Articles of Dissolution: The Utah Division of Corporations and Commercial Code is where you must submit your Articles of Dissolution.

3. Notify Creditors and Other Parties: After the dissolution, you must inform your creditors and other parties.

4. Liquidate Assets: You must sell the company’s assets and distribute the cash to the owners.

S-Corp vs. C-Corp

Choosing whether to form a S Corp or C Corp is one of the most crucial decisions you will make when beginning a business. Both kinds of corporations have benefits and drawbacks.

Being a pass-through business, a S corporation transfers profits and losses to its stockholders. Due to the reduction in double taxes, this may be advantageous. S corporations are also exempt from federal income tax.

A C company, on the other hand, is subject to two taxes. Both the corporation and the shareholders are subject to taxation on their respective incomes. C corporations, on the other hand, provide more freedom in terms of ownership and structure. Benefits of a S corporation include: The use of a S corporation has various advantages:

1. Pass-Through Entity: An S company is a pass-through entity, which means that profits and losses are distributed to the shareholders. This was already mentioned.

2. Limited Liability: Shareholders are not held personally responsible for the corporation’s debts and responsibilities.

S firms are exempt from federal income tax, which results in tax savings.

4. Employee Benefits: S businesses may provide benefits to their staff members, including retirement plans and health insurance. What does the S in S Corporation stand for?

In S Corp, the “S” stands for “Small Business Corporation.” A unique class of organization known as a S corporation is taxed differently from a regular corporation. S corporations are made to avoid double taxation while still offering the liability protection of a corporation.

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