LLC Cost in Utah – How Much to Pay for an LLC


Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing an LLC.

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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.

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

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#1 TOP PICK

$0 + State Fees

  • 100% accuracy guarantee

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$0 + State Fees

  • Established reputation

  • Extras are bit more expensive

  • Good customer support

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.

StatesFiling FeeAnnual/Biennial FeeSales Tax
Utah$70$204.7%
Idaho$100Free6%
Wyoming$102$504%
Colorado$50$102.9%
Arizona$50$305.%

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

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

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.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

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.

One of the most basic expenses associated with maintaining an LLC in Utah is the filing fee required to form the business entity. This initial cost can vary depending on the type of LLC you are forming and can range from a few hundred dollars to a few thousand dollars. While this may seem like a significant expense upfront, it is a necessary investment to establish your business and protect your personal assets.

In addition to the initial filing fee, there are also ongoing costs associated with maintaining an LLC in Utah. These costs can include annual filing fees, which are typically required to be submitted to the Utah Division of Corporations each year to keep your LLC in good standing. Failure to pay these fees on time can result in hefty late penalties or even the dissolution of your LLC.

There are also certain compliance requirements that must be met to maintain your LLC in Utah. This can include holding regular meetings, maintaining accurate financial records, and filing and paying taxes on a regular basis. While these tasks may require some time and effort, they are crucial for the success and longevity of your business.

Another potential cost associated with maintaining an LLC in Utah is the need for certain business licenses and permits. Depending on the nature of your business and where it is located, you may be required to obtain various licenses and permits to operate legally. These costs can add up quickly, so it is important to research and plan for these expenses in advance.

Finally, it is important for business owners to consider the cost of hiring professional services to help with the maintenance of their LLC. From legal and accounting services to business consulting and tax preparation, these professionals can help ensure that your LLC is operating smoothly and in compliance with all laws and regulations. While these services can be an added expense, they can also provide valuable guidance and expertise to help your business succeed.

Overall, the cost of maintaining an LLC in Utah can vary depending on a variety of factors. While there are certain expenses that are necessary to keep your LLC in good standing, it is important for business owners to weigh these costs against the benefits of operating as a limited liability company. By understanding the various costs associated with running an LLC in Utah and planning accordingly, business owners can set themselves up for long-term success and growth.

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.

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