Getting an Employer Identification Number (EIN) is one of the first steps you should do if you’re starting a business in Utah. The Internal Revenue Service (IRS) issues an EIN, a special nine-digit number, to identify your firm for tax purposes. Here is how to obtain an EIN in Utah.
Utilizing the IRS website to submit an online application is the simplest and quickest way to obtain an EIN number. You can get your EIN number immediately after submitting the application because it is free to do so. You must have a current Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) in order to submit an application online.
You can fill out Form SS-4 by downloading it from the IRS website if you’d rather submit your application by mail or fax. Once finished, you can send the form to the relevant IRS office through mail or fax. Applications sent by mail or fax are processed in around four weeks.
A seller’s permit is also referred to as a sales tax license in Utah. A sales tax license is required if you want to offer products or services in Utah. A sales tax license application is free, but you might need to post a bond or give a security deposit.
You must register with the Utah State Tax Commission in order to obtain a sales and use tax license in Utah. You can register by completing Form TC-69, Utah State Business and Tax Registration, or online at the Utah Taxpayer Access Point (TAP). One may also inquire, “How Can I Create an LLC in Utah for Free?”
Although there is a filing fee in Utah, it is not prohibitively expensive to form an LLC. You must submit Articles of Organization to the Utah Division of Corporations and Commercial Code in order to establish an LLC there. You can file online or by mail; the filing cost is $70.
In Utah, LLCs are not subject to entity-level taxation. An LLC’s profits and losses are instead distributed to each member individually, who then reports them on their individual tax returns. However, Utah franchise taxes on LLCs are based on the capital or net income of the LLC. Currently, Utah’s franchise tax rate is 0.6% of an LLC’s net income or 0.1% of its capital, whichever is higher.
After submitting the needed documentation and paying the required costs, forming an LLC in Utah normally takes 2 business days. The workload of the Utah Division of Corporations and Commercial Code, however, may affect processing timelines. By paying an additional cost, the process can also be sped up.
You must carry out the following procedures in order to register a sole proprietorship in Utah: Make sure the name you choose for your company hasn’t previously been taken. 3. Obtain all essential licenses and permissions for your firm. 2. Register your company name with the Utah Division of Corporations and Commercial Code. Apply to the IRS for an EIN (Employer Identification Number).
5. Create an account with the Department of Workforce Services and the Utah State Tax Commission. 6. Think about purchasing liability insurance for your company.
Note that unless you intend to utilize a DBA (Doing Business As) name, you are not needed to register your business with the Utah Department of Commerce as a sole proprietor.