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.
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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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.
Establishing an LLC in Utah is a relatively straightforward process, requiring potential business owners to file the necessary paperwork with the state. However, the costs associated with maintaining an LLC in Utah are not as widely discussed but are equally as important. It is essential for entrepreneurs to be aware of these financial obligations to ensure the viability and sustainability of their business.
One of the primary costs associated with maintaining an LLC in Utah is the annual registration fee. Each year, LLCs in the state are required to pay a fee to the Division of Corporations and Commercial Code to remain in good standing. This fee can vary depending on several factors, such as the size and earning potential of the company.
Additionally, LLCs in Utah may also be required to file an annual report with the state. This report provides updated information about the company, including the names and addresses of the members, as well as any changes to the business structure. Failing to file this report on time can result in penalties and potential suspension of the LLC.
Another expense that LLC owners in Utah should be aware of is the cost of hiring a registered agent. A registered agent is a designated individual or entity responsible for receiving legal documents on behalf of the company. While some entrepreneurs may choose to serve as their registered agent, many opt to hire a professional service to ensure compliance with state regulations. This service comes at an additional cost but can provide peace of mind and ensure that important legal documents are handled promptly and professionally.
In addition to these ongoing costs, LLCs in Utah may also incur expenses related to compliance with state and federal tax regulations. It is essential for business owners to stay up to date on tax laws and requirements to avoid potential penalties and repercussions. Seeking the advice of a qualified accountant or tax professional can help ensure that the LLC is in compliance with all tax obligations and can minimize the risk of costly errors.
Overall, while starting an LLC in Utah may be relatively affordable and straightforward, maintaining the company requires ongoing financial commitments. Entrepreneurs should carefully consider these costs and budget accordingly to ensure the success and sustainability of their business. By understanding the expenses involved in maintaining an LLC in Utah and planning accordingly, entrepreneurs 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.