How to Start an LLC in Utah (August 2024 Update)

For entrepreneurs looking to launch a new business venture, forming a limited liability company (LLC) can be an excellent way to organize and protect your assets. LLCs combine the tax benefits of a partnership or sole proprietorship with the liability protection of a corporation. If you form an LLC properly, your personal assets are shielded from business debts and legal claims associated with the company.

While every state has its own unique requirements, starting an LLC in Utah is relatively straightforward. In this comprehensive guide, we’ll walk you through the step-by-step process, including:

• Naming your Utah LLC
• Appointing a registered agent
• Filing your Certificate of Organization
• Creating an operating agreement
• Obtaining an EIN
• Opening a business bank account
• Paying fees and staying compliant

Follow along to learn how to form an LLC in Utah that meets all legal requirements while setting your new business up for success.

Step 1: Name Your Utah LLC

The first step to forming your LLC is brainstorming and choosing an official business name. You’ll use this name on all official legal paperwork and tax documents associated with your company.

In Utah, your LLC name must include a designator like “Limited Liability Company,” “LLC,” or “L.C.” It cannot contain words like “corporation,” “incorporated,” or “Inc.” which would imply you’ve formed a different type of business entity.

You’ll also want to make sure your chosen Utah business name is distinguishable from other companies in the state. You can search the database with the Utah Division of Corporations and Commercial Code to make sure the name you want is available.

Things to remember when naming a Utah LLC:

• Include LLC designation
• Don’t use restricted words that imply government affiliation
• Ensure name is unique and distinguishable
• Check URL availability before finalizing

The state does allow you to reserve a business name for up to 120 days for a small fee. This gives you time to finish arranging your LLC while ensuring no one else can take the name you want.

Tip: Even if you’re not launching a website yet, go ahead and buy a domain name that matches your business. It’s much harder to get the URL you want after the fact!

Step 2: Appoint a Registered Agent in Utah

Utah law requires all LLCs to designate a registered agent ​​— an individual or company authorized to receive official mail and legal notices on behalf of your business.

Your registered agent must meet the following criteria:

• Have a physical street address in Utah (no P.O. boxes)
• Be available during normal business hours to accept documents in person
• Get any legal or tax documents served to your business quickly forwarded to you

You can serve as your LLC’s registered agent yourself. However, this will make your personal home or office address a matter of public record. It also means you need to be available to accept legal paperwork in person during normal business hours. For privacy and convenience, most business owners prefer to use a commercial registered agent service.

Using a service as your registered agent allows you to keep your address private. It also ensures someone is always available to accept legal documents correctly on your LLC’s behalf.

Step 3: File Your Certificate of Organization

To legally form your Utah LLC, you’ll need to file a Certificate of Organization (sometimes called Articles of Organization) with the state’s Department of Commerce. This registration paperwork establishes your business as a legal entity and gets it on the records with the state.

You must provide the following information:

• Your official LLC name
• Principal office address
• Registered agent’s name and Utah address
• Organizer's signature
• Names and addresses of any members/managers (optional)
• Whether your LLC has a specific dissolution date or will exist perpetually
• A brief description of your type of business

You can submit your Certificate of Organization by mail, in person, online through Utah’s OneStop Business Registration System, or via fax.

The filing fee is $54 to register your LLC with the state. You can also pay an additional $75 for expedited processing to receive approval within 2 business days.

Utah allows LLCs to be structured as either member-managed or manager-managed. With a member-managed LLC, all members participate equally in running the business. In a manager-managed structure, members appoint or hire one or more managers to handle day-to-day operations.

Tip: Most new Utah LLCs choose member-managed due to its simplicity, but talk to an attorney or accountant about which structure best meets your needs.

Step 4: Create an Operating Agreement

Though not technically required, it’s highly recommended for LLCs in Utah to create an operating agreement. This document spells out all the details regarding ownership stakes, member responsibilities, processes for adding/removing members, rules for dissolution or selling the company, and more.

Having an operating agreement is extremely useful for:

• Preventing disagreements among members
• Ensuring smooth operation of your LLC in case of disputes
• Clarifying rules, regulations, and procedures for your business
• Demonstrating your LLC is run properly in case of lawsuits
• Making your company eligible to open a business bank account

So what should you include when drafting an operating agreement for your Utah LLC? Here are some key sections to cover:

• Member capital contributions and percentage ownership
• Profit/loss distributions based on ownership
• Member voting rights and decision-making processes
• Adding or removing members
• Steps if a member dies or wishes to transfer ownership
• Handling dissolution of the business

An attorney can help craft language to make an enforceable operating agreement. But you can also find free templates online to create one yourself. Just be sure it complies with Utah laws.

Tip: Even single-member LLCs benefit from having an operating agreement to define contingency plans for events like death, disability, or dissolution.

Step 5: Obtain an Employer Identification Number (EIN)

While not strictly mandatory, getting an employer identification number (EIN) should be on your to-do list when starting a Utah LLC.

The EIN is a unique 9-digit number that identifies your business to the IRS for tax and reporting purposes. It’s like getting a social security number for your company.

You’ll likely need an EIN if you want to open a business bank account, hire employees, or have your LLC taxed as an S-corp or C-corp. Luckily, obtaining an EIN is free and only takes minutes online.

The EIN also serves as an additional layer of protection between your personal and business finances, since you won’t need to provide your SSN to vendors.

Tip: We recommend applying for your EIN as soon as you receive confirmation that your Certificate of Organization was approved by Utah.

Step 6: Open a Business Bank Account

Keeping your business and personal finances separate is crucial for maintaining liability protection with an LLC.

After you obtain your EIN, open a dedicated business checking account for your Utah LLC. You’ll need to provide banks with a copy of your filed Certificate of Organization and LLC operating agreement.

A business bank account will require an EIN instead of your SSN. This further distinguishes LLC transactions from your personal finances. Plus, a business credit card tied to your LLC bank account can help build your company’s credit history.

For more information, take a look at our article on the key benefits of business checking accounts.

Step 7: Stay Compliant with Utah’s Rules

Congratulations—the hard part is over! But before you dive into business operations, there are a few final housekeeping steps involved with starting and maintaining a Utah LLC:

• Pay your annual state registration fee ($15 per year)
• Stay on top of any applicable business taxes
• Comply with local licensing and permit regulations
• Create a website and social media pages to start building your brand

It can be helpful to connect with an accountant and attorney to understand all the legal and tax implications when starting a Utah LLC. They can ensure you stay compliant as laws and your business change over time.

Starting an LLC doesn’t have to be complicated. We hope this guide gave you clarity and confidence for launching your Utah limited liability company. Just take it step-by-step to ensure you complete all legal formation requirements.

And don’t hesitate to enlist the help of business services or professionals to assist with the process. They have the expertise to get all your legal ducks in a row―allowing you to concentrate your energy on starting operations and attracting your first customers.

Good luck with your new Utah business venture!