Fact Checked by Editorial Staff
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 | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK
 | $0 + State Fees |
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 | $39 + 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
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.
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 main costs of maintaining an LLC in Utah is the filing fee required to establish the entity. The initial cost of forming an LLC can vary depending on the state, but in Utah, the filing fee is relatively affordable compared to other states. This fee covers the cost of processing the necessary paperwork to legally establish the LLC within the state.
In addition to the initial filing fee, business owners should also consider the annual renewal fee required to keep the LLC in good standing with the state. This fee is typically due on an annual basis and varies depending on the state and the size of the company. Business owners are responsible for ensuring that this fee is paid on time to maintain the LLC’s current status and avoid any penalties or potential dissolution.
Another cost to consider when maintaining an LLC in Utah is the cost of obtaining any required business licenses and permits. Depending on the nature of the business, certain industries may require specific licenses and permits to operate legally within the state. Failing to obtain these licenses could result in fines or even the closure of the business. It is important for business owners to factor in any licensing fees when budgeting for the overall cost of maintaining their LLC.
Furthermore, business owners should also consider the cost of hiring a professional registered agent to represent the LLC in legal matters and receive important documents on behalf of the company. While it is possible for individuals to serve as their own registered agent, outsourcing this responsibility to a professional can provide peace of mind and ensure that all necessary communications are received in a timely manner.
Finally, business owners should not overlook the cost of ongoing legal and accounting services necessary to maintain compliance with state regulations and tax requirements. Hiring professionals to handle these aspects of running an LLC can help protect the business from potential legal issues and financial penalties down the road.
In conclusion, while there are costs associated with maintaining an LLC in Utah, business owners should view these expenses as investments in the long-term success and protection of their companies. By understanding and budgeting for these costs, entrepreneurs can avoid any surprises and focus on growing their businesses with the peace of mind that they are operating legally and responsibly within the state.
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.