Step 1: Select a Name The first step in establishing an LLC is picking a name for your company. The words “Limited Liability Company” or its acronym “LLC” must be in the name. You can use the Utah Division of Corporations and Commercial Code’s online database to see if the name you want is available.
Select a Registered Agent in Step 2 A person or company named as the LLC’s registered agent will receive court filings and official correspondence on its behalf. The registered agent must be reachable during regular business hours and have a physical address in Utah. You have the option of designating yourself as the registered agent or working with a reputable registered agent firm.
Step 3: File Articles of Organization
You must submit Articles of Organization to the Utah Division of Corporations and Commercial Code in order to properly establish the LLC. The name of the LLC, the name and address of the registered agent, the business address, and the names and addresses of the LLC’s members must all be included in the articles.
Step 4: Draft an Operating Agreement
Although it is not necessary by law, it is highly advised for LLCs to draft an operating agreement. The management organization, ownership stakes, and operational procedures of the LLC are described in the operating agreement. Additionally, it aids in separating the LLC’s owners from a legal and financial perspective.
Adding a DBA to an LLC in Utah
You can submit a “Doing Business As” (DBA) form to the Utah Division of Corporations and Commercial Code if you want to conduct business under a name other than the name of your LLC. You must submit an Application for Registration of Alternate Name together with a $22 filing fee to add a DBA. Obtaining a State Tax Identification Number You must request a State Tax ID Number from the Utah State Tax Commission if your LLC has employees. Applying is possible online or by mail. Your LLC must provide information about itself, including its name, address, and federal tax ID number, in the application. Utah’s sales tax on automobiles The sales tax rate for cars in Utah is 6.85% of the purchase price. A dealership will normally take care of the sales tax if you purchase a car from them. You are responsible for paying the sales tax to the Utah State Tax Commission if you purchase an automobile from a private seller. Utah’s income tax rate is
The income tax rate in Utah is 4.95%, which applies to both people and businesses. However, several tax breaks and credits could reduce your effective tax rate. More details about Utah’s income tax structure can be found on the website of the Utah State Tax Commission.
Finally, establishing an operating agreement, naming a registered agent, filing articles of formation, and picking a name are all necessary steps in founding an LLC in Utah. Running a successful LLC in Utah also requires taking into account the state’s income and sales tax rates, adding a DBA, and obtaining a state tax ID number.
Employer Identification Number, or EIN, is a tax identification number issued to firms by the IRS for tax-related reasons. EIN and tax ID are hence synonyms for the same thing. You will require an EIN or tax ID for your company when forming an LLC in Utah.