How to form an LLC in Utah – the easy and inexpensive way. We’ll show you how to choose a business name, file your articles of organization, and get your LLC started in Utah.
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Overview
Introduction
An LLC is a business organization that provides limited liability to its owners.3 min read
An LLC is a business organization that provides limited liability to its owners. In Utah, forming an LLC is simple and straightforward. The first step is to file your Articles of Organization with the Utah Division of Corporations and Commercial Code.
The Articles of Organization must include the following information:
-The name of the LLC
-The mailing address of the LLC
-The registered agent and registered address of the LLC
-The names and addresses of the organizers
-The effective date of the Articles of Organization
-Whether the LLC will be managed by members or managers
-If the LLC will be managed by managers, the names and addresses of the initial managers
-Whether the LLC will have a designated series
-Whether there will be any limitations on the authority of each series
After filing your Articles of Organization, you will need to obtain an Employer Identification Number (EIN) from the IRS. This can be done online, by fax, or by mail. Once you have obtained your EIN, you can open a bank account in the name of your LLC. Finally, you will need to obtain any necessary licenses and permits from the state and local government.
What is an LLC?
An LLC, or limited liability company, is a business structure that can combine the best of both a corporation and a sole proprietorship. LLCs are popular because they offer limited personal liability for owners, or “members,” which protects their personal assets from business debts and obligations. LLCs can be formed for most any business purpose, including online and brick-and-mortar retail businesses, service providers and professional practices. Another advantage of an LLC is that it’s not subject to the same stringent formalities and reporting requirements as a corporation.
To form an LLC in Utah, you must file articles of organization with the state’s Division of Corporations and Commercial Code. You must also appoint a registered agent in Utah who can receive official legal and tax correspondence on behalf of the LLC. Once your articles of organization are filed, you’ll need to obtain an employer identification number (EIN) from the IRS, open a business bank account and take care of any other licensing or permits required by your city or county.
The Benefits of an LLC
LLCs are beneficial because they offer limited personal liability to the owners, or members, of the company. This means that if the LLC is sued or if it cannot pay its debts, the owners’ personal assets are protected. As long as the owners do not personally guarantee any debts of the company, they will not be held liable for those debts. In addition, unlike with corporations, LLCs are not required to hold annual meetings or keep minutes of meetings. LLCs also have less stringent record-keeping requirements than corporations.
Another benefit of an LLC is that it offers flexibility in how the business is managed and how profits are distributed among the owners. The management structure of an LLC can be either centralized or decentralized. In a centralized management structure, management authority rests with a group of managers who are elected by the members. In a decentralized management structure, authority rests with the members who participate in making decisions about the business. Profits can also be distributed among members in different proportions than their ownership percentages.
How to Form an LLC in Utah
A limited liability company (LLC) is a business structure that offers personal liability protection and great tax flexibility.3 min read If you’re doing business in Utah, you might want to form an LLC. This guide will walk you through the process of forming an LLC in Utah.
Choose a Name for Your LLC
Your LLC’s name must end with “LLC,” “L.L.C.,” “Limited Liability Company,” or one of the abbreviations “LLC,” “L.L.C.,” or “LLP.” You may not use language stating or implying that your LLC is organized for a purpose other than that allowed by Utah law.
Your LLC’s name cannot be the same as, or too similar to, the name of any other business entity registered with the Division of Corporations & Commercial Code, nor can it be too similar to any trademark registered with the division Unless you obtain written consent from the owner of the trademark.
You may reserve a name for your LLC by filing an Application for Reservation of Limited Liability Company Name form before you file your Articles of Organization.
File a Certificate of Organization
To form your LLC in Utah, you must file a Certificate of Organization with the Utah Division of Corporations and Commercial Code. The filing fee is $70, and you can file online, by mail, or in person.
To file by mail, download and fill out the Certificate of Organization form. Mail the completed form and filing fee to:
Utah Division of Corporations and Commercial Code
P.O. Box 146705
Salt Lake City, UT 84114-6705
To file in person, bring the completed form and filing fee to:
Utah Division of Corporations and Commercial Code 160 E 300 S Suite 210 Salt Lake City, UT 84111
Appoint a Registered Agent
An LLC in Utah must have a registered agent on file with the state at all times. The registered agent is responsible for receiving service of process (legal notice) on behalf of the LLC, as well as any official correspondence from the state.
The registered agent can be an individual Utah resident or a business entity authorized to do business in Utah. The registered agent must have a physical street address in Utah and be available during normal business hours.
You can appoint a registered agent when you file your Articles of Organization with the state, or you can appoint one later by filing an Amendment to your Articles of Organization.
Create an Operating Agreement
An Operating Agreement is a document that will outline the ownership and operating procedures of your LLC. It is not required by the state of Utah, but we highly recommend that you create one. This will help to ensure that everyone is on the same page when it comes to decisions about the LLC, and will help to avoid any conflicts or misunderstandings down the road.
To create your Operating Agreement, you will need to decide on a few things:
-Who will be the members/owners of the LLC?
-How much money each member will contribute to the LLC?
-What percentage of ownership does each member have?
-How will decisions be made about the LLC?
-Who will manage the LLC?
-What are the roles and responsibilities of each member/owner?
-What happens if a member wants to leave the LLC?
Once you have answers to these questions, you can start drafting your Operating Agreement. If you need help, there are template versions available online, or you can hire an attorney to assist you.
File Annual Reports
It’s important to keep your LLC in good standing with the state of Utah by filing annual reports and paying the required fees. You can file annual reports online, by mail, or in person.
File Annual Reports
You must file an annual report for your LLC with the Utah Division of Corporations and Commercial Code. The report is due on the first day of the anniversary month of your LLC’s formation. For example, if your LLC was formed on January 15, the report is due on February 1st. The annual report must include:
-The name and address of your LLC
-The names and addresses of all members and managers
-An up-to-date list of all officers and directors
-The name, address, and telephone number of your LLC’s registered agent
-The date your LLC was formed
-The signature of a duly authorized member or manager
You will need to pay a filing fee when you submit your annual report. The fee is $20 for LLCs with fewer than 30 members, and $35 for LLCs with more than 30 members.
Conclusion
After you have decided to form an LLC in Utah, there are a few things you need to do in order to get started. First, you need to choose a name for your LLC and register it with the state. Then, you need to file the necessary paperwork with the state and pay the required fees. Finally, you need to create an operating agreement for your LLC. Once you have done all of this, you will be able to start operating your business!
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