States like Utah with high-performing economies tend to be the preferred location of many strategic business owners. It’s quite understandable considering its perks, but did you know that it also entails specific formation and annual costs? Let our trade specialists discuss all Utah LLC fees to help you make informed decisions during your entire business venture.
Formation Costs for a Utah LLC
Business Name Reservation
Your chosen trade name will represent your business for as long as you’re operating, which is why it’s important to pick something unique that’ll enhance your branding. On top of that, it has to be dissimilar to any existing Utah LLCs.
Technically, you can apply for an available LLC name by filing your certificate of organization. However, if you’re not yet ready for the legwork, we suggest you request a reservation and pay $22 to claim exclusive rights to the said label.
Certificate of Organization
Similar to other states, the filing of your certificate of organization is among the initial Utah LLC fees you must settle to the Secretary of State. This submission officially registers your business as a legal entity in the said state.
You have the option to file the formation documents online through the Utah Department of Commerce or send it via mail. Either way, you must settle $70 for the processing and an additional fee of $75 for expedited services.
Operating Agreement
Starting an LLC in Utah may not require crafting an operating agreement, but having one is a good consideration for your company. This internal document, which consists of management and ownership provisions, will help significantly in many operational aspects of your business [1].
Although you can create operating agreements for free, our business experts highly recommend seeking professional assistance if you’re not familiar with the legal and technical significance of the document.
EIN Registration
You may not know it, but businesses need an employer identification number (EIN) for tax and other legal transactions. This nine-digit code serves as your company’s social security number and could be requested for free through the IRS.
Registered Agent
Selecting a stellar registered agent service to receive crucial documents from the state is among the initial decisions one should make when forming an LLC. Despite the fact that you can elect yourself as a statutory agent, its obligations can be best handled by professional services if you intend to focus on operating the business.
Commercial service providers offer efficient and convenient features and assistance for monthly or annual charges amounting to $0 – $300.
Business License/s
Not all Utah LLCs need licenses and permits, but it solely depends on the nature of your business and the transactions you involve yourself in. These requirements heavily vary on standards set by the state, federal, and local governments. Some companies offering professional services may also be required to pass specific licensing exams.
Foreign LLC Registration
Out-of-state entities operating in Utah must first file a Foreign Registration Statement before they can be legally registered within the state. This procedure will cost your company a $70 processing fee.
LLC Formation Services (Optional)
Running a business is already hard enough, so if you’re overwhelmed with the registration process, our team recommends hiring an LLC formation service to handle your paperwork.
These professional companies will do a thorough job forming your business entity swiftly and accurately. However, expect additional service fees ranging from $0 – $300, depending on the features you chose to purchase.
(For online services, we also listed the top online incorporations service providers here)
Utah Annual LLC State Fees
Annual Report
In the state of Utah, you’re required to file a periodic report inclusive of the updated company information to verify the existence of your entity. This filing must be sent to the Department of Commerce before your LLC’s anniversary date, along with a $20 fee. Failure to submit may incur hefty penalties.
Overall Costs
Considering all mandatory fees like your certificate of organization filings and annual report submission, the total estimate costs of forming an LLC in Utah are between $90 to $95. This calculation does not include additional services and taxes.
FAQ
How much does an LLC cost in Utah?
An LLC in Utah costs around $90 to $95 per year. This overall estimation of costings includes the filing fees of both your formation documents and annual reports, which are mandatory requirements in the state. However, additional expenses may incur depending on taxable income and other services acquired.
Conclusion
From filing your registration documents up to submitting annual reports, all Utah LLC fees you must pay will always depend on the nature of your business. While the state has low expenses compared to others, our business enthusiasts still advise you to be mindful of your obligations as complacency could lead to penalties and dissolution risks.
