Utah has a long history of providing limited liability companies (LLCs) with a low barrier to entry, resulting in the state boasting one of the highest numbers of active business entities per capita.
The state also has a robust economy, leading to increased opportunities for businesses seeking to be profitable—especially in the tech sector. In this article, we’ll discuss what it takes to start an LLC in Utah.
We’ll also cover how to protect your personal assets, how to avoid major mistakes when starting your LLC, and give you the knowledge you need to make sound business decisions that will help you thrive and get a head start on establishing your brand.
Steps to Start an LLC in Utah
Starting an LLC in Utah doesn’t require you to sign up for any seminars, pass any tests, or go through a long application process. We’ll discuss detail of the process involved.
1. Choose a business name
First things first, you need to choose a business name. You can do that by following the same process as you would for a sole proprietorship, partnership or corporation. Alternatively, if you have an idea for a common name for your company or sporting goods store or brand you want to start, try using the DBA or doing consulting first.
This will help you understand if there are any existing obligations attached to the name before registering it. You don’t want to run into a trademark infringement issue or face an unwanted lawsuit over a business name. If you think it is appropriate, see if you will be able to obtain a trademark or copyright to the name while you are at it.
2. Reserve Name and Register Domain Name
Then, you need to reserve the name that you want. You can do this by checking with the Utah state government. You will then need to register the name with your domain registrar. This is done using www.namecheap.com where you will pay a monthly fee (the price varies from company to company) as well as a small one-time fee to register your domain name.
The domain needs to be active and point to your website’s URL. Also, it is best that the domain name has the same name as your LLC. Next, do a trademark search to make sure there are no trademarks on the same or similar names and types of services.
3. Create a Business Plan
You also need to draft a business plan for your business. Anything related to your new business should be included in this plan, starting from its legal structure (LLC) and ending with what products you are going to sell.
This plan will be used by lenders when they make decisions on whether to provide you with the type of loans that your business needs. They will also look at the financial plans you have to see if you are able to make the necessary payments.
4. Choose Registered Agent
The process of setting up an LLC in Utah will also involve choosing the registered agent. This is the person that receives legal processes and documents on behalf of the company. The role of this person is to receive official documents, maintain bookkeeping records, and other important tasks for your business. You will also need to choose your registered agent at the state level after you have approved your formation as an LLC there.
This is a person or business which you can use to will serve as a contact point for people contacting your company for purposes like contract signing, payment disputes, and resolution of legal matters. The registered agent will receive important mail addressed to the business’ address and keep records of such papers. They are also responsible for delivering the mail to anyone who needs it or wants it.
You need to have a registered agent at all times because of the role they play and the personal information they have access to on behalf of your company. This is why you need to choose the right person for the job.
5. Prepare and file your Articles of Organization
When you decide that it is time to go through the process of preparing and filing your Articles of Organization, you can do this by downloading the forms for filing your copies. These forms will also be available at the state level where you will be submitting them.
Articles of organization are the documents that outline details about your LLC. It is important to fill these out correctly with all necessary information and submit them to the state government by following the instructions available on their website. After doing so, you will receive an email that confirms your LLC has been successfully formed and registered in Utah.
6. Get a Certificate of Formation
You need to get a Certificate of Formation before you can start your LLC in Utah. This certificate is the official document that confirms your establishment as an LLC operating in Utah. It is issued by the state and mailed directly to the address you provide.
The certificate of formation is for your benefit and you are the only person authorized to receive it. Once you have the certificate, you will officially become a registered LLC in Utah and are required to use the company’s full legal name.
7. Apply For EIN
You also need to apply for an Employer Identification Number (EIN) for your company. The EIN allows you to open a bank account and make quarterly tax payments on the profits your business makes each year. This is the best way to make sure that your business keeps its tax obligations in effect and operating to the best of its ability.
There is also a tax code associated with your company’s business operations. Once you have obtained the EIN, you can enter the tax codes available to your business in order to pay the appropriate taxes on your annual profit margins.
All in all, setting up an LLC in Utah can be a quick and easy process involving a great number of tools and tools at your disposal. You are also able to get any type of assistance from professionals who will help you to accomplish your goal as soon as possible. The steps that have been outlined above should lead you toward the goal of having your company established if you decide on running it as an LLC instead of having it operate as a corporation or partnership.