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Utah’s educated workforce, growing economy, strong infrastructure, access to capital, and supportive government services make it an entrepreneurship haven. It’s no surprise that the state has consistently ranked as one of the top places to form a new business.
Whether you are Utah-born or a newcomer looking to grow business roots in the state, the process of forming a limited liability company in Utah is almost the same. But it’s best to take it step-by-step to ensure it’s all done properly. From selecting a business name to filing your articles of organization, we’ll show you the right way to form your LLC in Utah.
Why form an LLC in Utah
A limited liability company (LLC) offers multiple advantages. The limited liability protection you gain from this type of business formation helps to keep your personal finances separate from your business debts, which can ensure your personal assets—like your home or your savings accounts—can’t be seized by debtors.
LLCs are also attractive because they offer flexibility in management and ownership and lend legitimacy to your business, which can help it appear more trustworthy to investors, creditors, and customers.
LLCs are also considered pass-through tax entities, which means owners pay taxes on any profits on their personal income tax return. This can be an advantage, since it means LLC owners do not have to pay double taxation like corporations usually do.
How to create a Utah LLC in 6 steps
The Utah Division of Corporations and Commercial Code, which is part of its Department of Commerce (DOC), oversees new business formations in the state. Their website is the hub for information about starting a Utah limited liability company, including laws and requirements.
These steps break down the LLC formation process in the Beehive State.
Step 1: Choose your business name
To form an LLC in Utah, you need to select a business name. Your chosen name must be available and meet the following requirements:
- Mandatory descriptor. The official LLC name has to have an identifier like “LLC,” “limited liability company,” "limited company," or ”L.C.”
- Distinguishable. The name can’t be similar to any existing or reserved business name. For instance, Utah will deem “Eight O One Cafe” and “The Eight O One Cafe” indistinguishable. Use of special characters and differences in punctuation, capitalization, and abbreviations don’t make a name distinguishable.
- Prohibited words. The Utah LLC name can’t allude to any government agency or authority, such as “state,” “FBI,” or “Treasury.”
- Restricted words. Using restricted terms like “bank,” “college,” “escrow,” “trust,” or “Olympic” requires prior approval.
The Utah Division of Corporations offers a free business entity name search so you can check if your chosen name is available. You can also use LegalZoom's free business search tool below.
Free Utah Business Name Check
Use our free name check tool to search the Utah Secretary of State database and see if your business name is available.
By clicking "Check Availability," I agree to LegalZoom's Terms of Use. This search is a preliminary check of state databases and does not include variations or trademarks. Results do not guarantee name availability or compliance with legal requirements.
If the name is available but you aren’t ready to file your registration, file an Application for Reservation of Business Name. Submit this form, along with a $22 filing fee, to hold the name for 120 days.
Step 2: Appoint a registered agent
You must appoint a registered agent for your Utah LLC. A registered agent is responsible for receiving service of process, tax forms, legal documents, and all other official communication from the state or federal government. Think of them as your communications admin.
The states set a registered agent requirement because they need a reliable way to contact you. Suppose there’s a legal case filed against your business—the courts can’t proceed without formally notifying you.
In Utah, your registered agent must:
- Be more than 18 years old
- Be a legal resident of the state
- Have a physical street address in the state (P.O. boxes aren’t acceptable)
- Be available during regular business hours (9 a.m. to 5 p.m.) to receive service of process
If you are willing to assume the risks involved, Utah allows you to be your own registered agent. However, it’s important to keep in mind that being a registered agent is a time-demanding task that can restrict your ability to move freely during the day. In order to perform the regular duties needed to run your business, you’ll likely need to register your primary place of business as your registered agent office too. And if you’re served with a lawsuit, it may happen in front of your employees or clients.
LegalZoom’s Registered Agent Services can handle this administrative duty, which will shield your privacy and save you from unexpected visits from legal servers at work or home. Additionally, our services include:
- A private business address on all public filings
- Guaranteed availability during business hours
- Immediate email and dashboard alerts when documents arrive
- Secure digital document storage
- Compliance calendar reminders
Step 3: File the certificate of organization
Utah LLCs are formed by filing the Utah certificate of organization, usually known as articles of organization in other states, with the Division of Corporations and Commercial Code. You can mail, fax, or file the form in person, but it’s quickest to do it online via their Business Registration portal. There is a nonrefundable processing fee of $59 for all new LLC applications.
The application requires you to list:
- Business name and street address
- Registered agent information
- Business purpose
- Signature of the owner or person filing the documents
Online applications are approved within 24 hours. Other filings typically take 2–4 days to process.
Once your application is approved, you will receive a business entity number from the department. Keep this number handy, as you’ll need it for tax and compliance purposes.
Step 4: Create an operating agreement
The Utah Department of Commerce doesn't officially need you to have an operating agreement, but writing one will ensure a solid foundation for your business. An LLC operating agreement lays the groundwork for management and operations while protecting personal liability. An operating agreement also adds credibility to your company.
While you can start with a Utah LLC operating agreement template to streamline the drafting process, it's essential to customize the document to reflect the unique aspects of your business. Consult an attorney to help ensure your operating agreement covers all necessary legal bases.
Your Utah LLC operating agreement should address issues like management structure, members’ ownership interests, roles, financial responsibilities, voting rights, rules about adding and removing members, and succession and dissolution plans.
LegalZoom’s operating agreement service will give you the peace of mind that all matters have been addressed, and you can confidently run the company.
Building a business is enough work as it is. We'll help you start your LLC with confidence.
Step 5: Obtain an EIN and open a separate business bank account
The first step towards being a financially responsible small business owner is to get a federal employer identification number (EIN) from the IRS. EINs allow you to hire employees, pay federal taxes, and open a business bank account. An EIN also protects you from identity theft, as you no longer have to use your SSN for business or federal tax purposes.
Get an EIN using LegalZoom’s EIN service. We guarantee accurate filing—fill out a quick questionnaire and we will get back with a confirmed EIN for your business.
When you open a dedicated business bank account, you separate personal and business finances. This draws another line between you as a person and your business entity and increases your personal liability protection. A separate business bank account also allows you to maximize your business' finances, as it's a lot easier to track income and expenses, prepare financial statements, and claim business deductions.
Step 6: Register for state taxes and business licenses
Next, register your LLC with the Utah State Tax Commission via Taxpayer Access Point (TAP). This centralized portal allows you to register for all applicable taxes, such as sales and use tax, state income tax, and payroll tax (if you hire staff). Once completed, you will receive your state sales tax number and license.
Proper business licenses and permits build your reputation as a safe and law-abiding business. The required licenses and permits vary based on locality, industry, and size. Utah Department of Commerce's Business Education hub provides applicable licensing websites for all counties, cities, and towns. If your Utah LLC provides professional accounting or real estate services, you can identify and apply for licenses through the Utah Division of Professional Licensing.
Additional local and county-level permits may also be required. For instance, if you’re opening a daycare, you'll need a zoning and health permit from local authorities. The city clerk's office or website is a good starting point for this information, or you can use LegalZoom’s business license lookup service. Just tell us a bit about your business, and we'll get back to you with all the licenses and permits you need.
Starting a business takes courage. LegalZoom makes sure the legal details don’t stand in your way, from the day you register until the day you retire.
What to do after forming your Utah LLC
There are some to-dos to take care of after you’ve formed your LLC in Utah. These will ensure your LLC continues to run efficiently and effectively.
Register your domain name
A matching domain name allows you to build a website that establishes credibility and increases visibility. Once you’ve chosen an available domain name, you can purchase the name for a nominal fee from domain name registrars like Wix, GoDaddy, or Namecheap.
Pro tip: If an exact match isn't available with a .com extension, consider alternatives like .biz or .net. Depending on your branding, you could consider a novelty domain extension.
Obtain a certificate of good standing
A certificate or letter of good standing for your Utah LLC shows the world that your company is following the law, compliant on tax and other financial matters, and is simply doing things right. In many cases, a potential partner, vendor, or even client may request you to show your certificate before they engage in business with you.
To get your certificate, go to the Utah Division of Corporations' business portal and select "Purchase certificate of existence." The filing fees are $12. If you need this document rapidly, you'll have to pay an additional $75 for it to be processed within two days.
Buy business insurance
Business insurance provides liability protection. There are various kinds of insurance, some of the most common ones being:
- General liability insurance. This broad insurance is the most basic type. It protects against injury and property damage claims, and sometimes other scenarios.
- Professional liability insurance. If a client accuses you of making a mistake that harmed them or their business, professional liability insurance can help. This includes things like missing a deadline or making an accounting error, but generally doesn’t include malpractice claims (which is its own type of insurance).
- Product liability. This protects against injuries caused by a faulty product.
- Unemployment insurance. Per Utah law, all employers are required to pay unemployment insurance and maintain quarterly compliance with wage reporting. This helps the state compensate workers who lose their job in no-fault dismissals or layoffs.
- Workers' compensation insurance. By law, most businesses with employees are required to have this. It helps pay for medical bills and lost wages of an employee who is injured at work.
Consider a foreign LLC
If your business expands beyond Utah borders, consider applying for foreign authorization. You'll need to register as a foreign LLC in every state you conduct business in. While this might seem expensive, it opens the door to growth and opportunity.
Apply for a business credit card
There are startup costs with all LLCs, and a business credit card is a fast and simple way to access funding for small to mid-sized needs. One of the top advantages of a business card is that it helps you establish business credit while giving you another way to separate business and personal expenses.
Hire legal representation
Writing employment contracts, abiding by local compliance laws, resolving ownership issues or liability claims, submitting license renewals, and claiming the right business expenses—there are a lot of decisions you need to make as an LLC owner. When you hire a business attorney, you can get proper legal guidance on all these matters and more.
Annual report filing requirements for Utah LLCs
Utah law mandates all LLCs to renew their registration by filing an annual report. The annual report, or business renewal form, for your domestic limited liability company is due on your formation date (found on your certificate of organization or using the business information lookup tool). Have your business entity number and renewal ID ready for annual report renewals. The renewal ID will be mentioned in the renewal notice sent to your registered agent's address.
It’s extremely important to file your annual report correctly and on time. Failure to do so can result in fees, penalties, and loss of good standing with the state of Utah. In extreme cases, noncompliance could result in the dissolution of your business.
You can file the annual report up to 60 days before the official due date online, via mail, or fax. The report filing fee for an LLC is $18.
How much does it cost to form an LLC in Utah?
The minimum cost to form an LLC in Utah is $59—which is the cost to file your certificate of organization. But you may have other costs associated with registering your LLC depending on the type of business you’re registering, how much of the work you’re willing to do yourself, and what additional services you opt into. Depending on what you choose, your costs could be as high as $400–$500.
Here is an overview of common cost considerations you may want to budget for.
Formation fees. It costs $59 to file a Utah certificate of organization.
Business name reservation. Business name reservations cost $22 for 120 days. You can renew the name reservation for another 120 days for an additional $22.
Doing business as (DBA). If you decide to run your business under a different name than your LLC’s legal name, you must apply for a DBA certificate. In Utah, the DBA is known as an assumed name. The filing fee is $22.
Registered agent costs. Professional registered agent services can cost anywhere between $100–$500. When you delegate this time-consuming administrative role to a professional registered agent, you have more ability to focus on core activities like bringing in customers and driving sales.
Business license expenses. The cost of a business license depends on your locality and how many licenses you require. For instance, in Salt Lake City, the new businesses are required to pay $100 for a city business license. Professional licenses range from $20 for a barber apprentice license all the way to $330 for an alarm company.
Business insurance cost. According to NEXT Insurance, the average cost for general liability insurance in Utah is $46 per month. The cost changes based on industry risk, number of employees, and coverage limit.
Legal expenses. If you decide to get legal help for your Utah LLC formation, budget another $250–$300 in legal costs. Lawyers implement several different pricing strategies, and a lot depends on their expertise, location, and case complexity.
How to start your LLC with LegalZoom
Working with a company like LegalZoom for your Utah LLC formation can ensure that all the steps to form your LLC are performed correctly. Some of the top services included in our different formation packages include conducting a name check, securing an EIN, and providing access to bookkeeping tools.
Find the right state to form an LLC
Find the right state to form an LLC
Every state has different rules, costs, and considerations for LLC formation.
LegalZoom can help you file your state's formation paperwork for as little as $0 + state filing fees.
FAQs about Utah LLCs
How do I correct filing errors in Utah?
Login to Utah’s Business Registration Information Change dashboard using your Access ID and business entity number. You can change your address, registered agent information, or member details. Online changes are processed and reflected on your business’ public records within two business days. You can also make changes via a paper form, but these amendments have a longer processing time. A $17 nonrefundable filing fee is applicable.
There's a different procedure if you want to change your official certificate of organization. For example, to change a business name or go from member-managed to manager-managed LLC, you need to file an Amendment to the Certificate of Organization form.
How do I dissolve a Utah LLC?
There are two ways to dissolve or terminate your Utah LLC. You can use an online dissolution service or submit a Statement of Dissolution or Statement of Termination form to:
Division of Corporations and Commercial Code
P.O. Box 146705
Salt Lake City, Utah 84114-6705.
Ensure that all business taxes and debts are paid before submitting the form.
Can I form a professional LLC in Utah?
Yes, Utah allows for the formation of professional LLCs, which is a special type of limited liability company used by certain licensed professionals like doctors, accountants, attorneys, and even real estate agents. Because these professions are governed by regulatory agencies, owners of PLLCs may have different rules and regulations to follow compared to general LLC owners.
Additionally, while PLLCs do carry the benefit of limited liability protection, they do not protect owners from malpractice claims or other professional mistakes.
How do I decide the best legal structure for my Utah business?
The Utah Division of Corporations and Commercial Code offers new entrepreneurs the ability to form the following legal structures—an LLC, partnership, corporation, S corporation, and even a professional limited liability company (PLLC). Each business structure has its own pros and cons. For most small business owners, an LLC is the best. It's simple and offers flexibility and control while not having excessive compliance requirements.
Rudri Bhatt Patel and Swara Ahluwalia contributed to this article.
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