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 |
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 | $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.
Starting and maintaining a business in any state entails various costs and responsibilities. Utah, a state renowned for its business-friendly environment, offers entrepreneurs a range of options, such as the Limited Liability Company (LLC) structure. An LLC provides a unique blend of liability protection and flexibility, making it an attractive choice for many businesses. However, as with any business structure, there are costs associated with establishing and maintaining an LLC in Utah.
One of the primary costs to consider when operating an LLC in Utah is the filing fee for formation. The state requires entrepreneurs to file Articles of Organization with the Division of Corporations and Commercial Code, along with a fee. While this fee might seem burdensome initially, it can be seen as an investment in safeguarding personal assets and securing legal protection.
An essential element of maintaining an LLC lies in regular compliance and reporting requirements. Utah obligates every LLC to file an Annual Report to the Division of Corporations and Commercial Code. This report involves a minimal fee, but it is crucial for fulfilling legal obligations and keeping the LLC in good standing. Non-compliance can lead to penalties or even dissolution of the LLC, underscoring the importance of timely reporting.
Additionally, beyond state-level obligations, maintaining an LLC in Utah may also involve costs related to local licenses, permits, and taxes. Depending on the nature of the business and its location, entrepreneurs may need to obtain various county or city-specific permits, such as business licenses or zoning permits. These requirements serve to ensure compliance with local regulations and ordinances.
Furthermore, it is worth noting that Utah’s tax structure is generally advantageous for businesses, especially LLCs. This business structure allows LLCs to avoid the double taxation faced by corporations and instead, enables the passing-through of profits and losses to individual members. Nevertheless, depending on the business activities of the LLC, it may still be subject to various taxes such as sales tax, employment taxes, or federal taxes associated with business income. Hence, tax compliance efforts should be factored into the overall expenses of running an LLC in Utah.
Lastly, though not directly a cost, it is important to address the administrative responsibilities associated with maintaining an LLC. These responsibilities range from keeping accurate financial records, bookkeeping, maintaining a registered agent, and adhering to various state laws and regulations. While some entrepreneurs choose to handle these responsibilities themselves, others may opt to hire professional services, such as accountants or law firms, to alleviate the burden. Considering the time and expertise required, the decision ultimately depends on the individual needs of each business owner.
In conclusion, maintaining an LLC in Utah incurs various costs, both directly in terms of filing fees, annual report fees, state-specific licenses, permits, and potential taxes. Additionally, entrepreneurs must consider the administrative responsibilities associated with keeping an LLC compliant and in good standing. These costs should be taken into account when assessing the overall expenses of operating a business within the state. Utah’s business-friendly environment, advantageous tax structure, and support for entrepreneurs have contributed to its reputation as a great place for LLCs.
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.
