Although Utah is well-known for its stunning scenery and outdoor pursuits, it’s also a great spot to launch a business. However, it’s crucial to comprehend the state’s sales tax structure and regulatory framework before entering the field of entrepreneurship. In this post, we’ll respond to some frequently asked questions regarding the origin-based sales tax in Utah, DBAs, the creation of LLCs, and the existence of LLCs in Utah.
Yes, Utah has a system of origin-based sales taxes. It implies that the seller’s location, not the buyer’s, determines the sales tax. Based on where the sale originated, you must collect sales tax if you are selling products or services within the state of Utah. There may also be additional county and city sales taxes, which can run from 1% to 3.25%. The state sales tax in Utah is now 4.85%.
Doing Business As (DBA), commonly referred to as a trade name, is the registration of your company’s fake name. DBA registration in Utah is $22 per name and is good for five years. The Utah Division of Corporations and Commercial Code allows you to register your company’s DBA name online. Do I Require a DBA in Utah?
You must file a DBA if your company conducts business under a name other than the owner’s legal name. For instance, if your sole proprietorship’s name is “John Smith’s Bicycles,” you must file a DBA. If you are operating a Limited Liability Company (LLC), you do not need to file a DBA because the business name is already registered with the state. How Can I Create a Utah LLC for Free?
In order to form an LLC in Utah, you must prepare an Operating Agreement, file Articles of Organization with the Division of Corporations and Commercial Code, and pay a $70 filing fee. Although there are no free ways to form an LLC in Utah, there are a number of affordable alternatives. Online LLC creation providers like ZenBusiness and Incfile provide cost-effective LLC formation services, which also include submitting the Articles of Organization, obtaining an EIN, and creating an Operating Agreement. How Much Time Does an LLC Have in Utah?
Unless a termination date is specified in the articles of organization, LLCs in Utah are perpetual. If an LLC has a perpetual existence, it will remain in existence until it is dissolved or terminated. To preserve good standing and prevent dissolution, firms must submit an Annual Report to the Utah Division of Corporations and Commercial Code each year.
In conclusion, new business owners may find it challenging to understand Utah’s origin-based sales tax structure. However, to make sure your company conforms with state laws, you must register a DBA, create an LLC, and file annual reports. You’ll be well on your way to launching a successful business in Utah by comprehending the state’s sales tax structure and regulatory requirements for businesses.
A Utah LLC is a limited liability business set up in accordance with Utah state law. A limited liability company structure shields its owners from the financial and legal responsibilities of the business. It also offers flexible management and tax treatment options, which makes it a popular alternative for Utah’s small business owners.