Perhaps you are hoping to form a Utah LLC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Utah.
On this page, you’ll learn about the following:
Utah LLC Cost of Filing
Here are the costs involved in forming an LLC in Utah.
Cost of Filing Formation Certificates
The Utah Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Utah Secretary of State.
Utah Domestic LLC
- Online Filing costs $70.
- Annual Report filing costs $20
- Name Reservation fee costs $22
- By Mail: Fill out the application form, and send it to Utah Division of Corporations & Commercial Code P.O. Box 146705 Salt Lake City, UT 84114. Costs $70.
Utah Foreign LLC
- Online Filing costs $70.
- Annual Report filing costs $20
- Name Reservation fee costs $22
- By Mail: Fill out the application form, and send it to Utah Division of Corporations & Commercial Code P.O. Box 146705 Salt Lake City, UT 84114. Costs $70.
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
Utah LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Utah, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
LLC Service | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $0 + State Fees |
| |
 | $299 + State Fees |
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Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Utah Department of Revenue for regulatory boards or agencies requiring licensing.
Taxes Payable to the Utah Department of Revenue
If you wish to register an LLC in Utah, you will need to pay a number of taxes to the federal as well as Utah governments. Let’s look at the main taxes that are to be paid by LLCs in Utah. There are two types of taxes to be paid to the Utah Department of Revenue:
State Income Tax
You have to pay the state tax on any amount you pay to yourself. The earnings you make shall be taxed through your personal tax return. The standard rate of income tax which is 4.95%, will be applicable & you can apply for all the standard allowances and deductions.
State Sales & Use Tax
If you are a seller of goods or you are a service provider, you have to collect tax & then pay it to the Utah Department of Revenue. This State Sales & Use Tax can be collected at the time of purchase. The Sales & Use Tax varies in different regions, counties, & cities.
The current state sales & use tax rate on LLC in Utah is 4.7%
Federal Self-Employment Tax
Federal Self Employment Tax, also known as Social Security or Medicare tax, is to be paid by all the LLC Business members or managers. This kind of tax is applicable to all the earnings you withdraw from your business.
The Federal self-employment tax rate in Utah is 15.3 percent, which includes 12.4% for social security & 2.9 for medicare.
Federal Income Tax
In addition to the state income tax, you have to pay the Federal Income tax on all the earnings you make in your Utah LLC.
The amount of the Federal Income Tax depends upon your earnings, the income tax bracket in which you qualify, the deductions, & the manner/ mode of filing.
Employee & Employer Taxes
If you have a number of employees who draw monthly salaries, then there will be some added Employee-Employer taxes on that. These tax implications vary, depending on various factors, e.g., the amount, number of employees, etc.
Cost Comparison Between States
Utah is surrounded by many states, namely Idaho, Wyoming, Colorado, Arizona, etc. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.
| States | Filing Fee | Annual/Biennial Fee | Sales Tax |
| Utah | $70 | $20 | 4.7% |
| Idaho | $100 | Free | 6% |
| Wyoming | $102 | $50 | 4% |
| Colorado | $50 | $10 | 2.9% |
| Arizona | $50 | $30 | 5.% |
On the basis of the kind of industry you LLC operated in, your LLC will be liable to some other taxes & duties. For Example, if your LLC is in the sector of import & export, you have to pay the import-export duty. You should consult with a professional to verify the tax rates or business costs of registering an LLC in Utah.
Other Costs
- Utah Name Reservation: $22 for filing by mail
- Doing Business As (DBA): $25 if filing by mail
- Certified Document Copies: $12
- Certified of Good Standing: $25
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Utah LLC: Free or $75 for expedited filing
How Much Does It Cost to Maintain an LLC in Utah
To maintain an LLC in Utah you will need to pay an annual fee of $20 along with state income tax at 4.95%, sales & use tax at 4.7%, and federal taxes.
Maintaining a Limited Liability Company (LLC) in Utah requires more than just filing for Articles of Organization and obtaining a certificate of existence. Many business owners fail to realize that there are ongoing maintenance and compliance requirements for their LLCs that need to be taken into account. Ensuring compliance with corporate regulations not only protects the company from substantial financial losses but also prevents potential legal hassles.
LLCs are business structures recognized by the state of Utah that give business owners the flexibility of a partnership with the benefits of corporate trademark protection. Keeping an LLC compliance with state regulations requires the company to file an annual report with the Division of Corporations and Commercial Code and pay their franchise tax fee, which varies depending on the company’s income. Additionally, LLC owners should keep their company’s operating agreement, membership certificates, and records of meeting minutes up to date and well-maintained.
Therefore, it is important to have a clear understanding of the cost associated with LLC maintenance in Utah to avoid unwanted penalties and expenses in the future. Business owners might have concerns over the initial and yearly expenses of owning and running their LLC, but they need to take into account the various state regulations that must be complied with to maintain their business status.
Although Utah’s policies may vary, it is essential to have competent legal counsel based on your company’s individual legal needs to avoid any legal hurdles. Moreover, LLC owners should budget for taxes they have to pay, salaries and expenses, as well as licenses and other fees owing to government agencies. Law requires all businesses mandated to charge sales tax to acquire and keep up-to-date sales tax licenses.
It’s important to note that consumer confidence is a valuable asset in the successful operation of an LLC too. Business owners must maintain an electronic record regarding their customer transactions to make findings easy and hassle-free. Utah upholds standards for online transactions and rental services. LLCs are hugely advantages and one of the reasons is it doesn’t take too many people to create or maintain and run it formally. It is crucial to talk to state lawyers to clarify all legal matters besides the necessary paperwork, compliance stipulations, and payments.
All companies in Utah must design, file, and display some different agreements concerning customers, other companies, products, and services. As LLC start-ups start fast/quick investment return, business owners should bear in mind policies regarding contract workers’ hire and social security support payments.
Furthermore, LLC owners musl keep track of other important payments such as property tax for office or storage space rental, maintaining an updated website/physical address/corresponding phone numbers, and salaries and employee benefits. Last but not least organizing profitable ventures demand a strict compliance attestation that can be quite expensive.
To ensure compliance with Utah’s LLC related policies while overseeing and running own businesses, business owners should designate funding for insurance requirements (property, general liability) for branding and website maintenance purposes. Regular legal review of all of the laws is important when action like company extension coincides with the principles and duties of most business models. Utmost caution and care are necessary to secure the LLC you’ve worked so hard to establish. This will provide a more accurate picture of LLC costs and of the obligations that all LLC owners face.
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
In Conclusion
The cost of Utah is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.
