How much does an LLC cost in Utah? (details)
Forming a Utah LLC entails more than just paying the first filing fee; it doesn't have to be extremely expensive.
We outline all up-front and continuing costs for a Utah LLC and advise how to successfully cut these out of the budget.
How Much Does It Cost to Start an LLC in Utah?
There is a $54 filing fee for the Certificate of Organization with the Secretary of State when forming an LLC in Utah.
This is important in creating your LLC's legal standing, allowing it to function under Utah regulations if approved.
Apart from the LLC filing fee mentioned above, additional expenses are associated with establishing a Utah LLC (Limited Liability Company).
Costs of Forming a Utah LLC
Forming an LLC includes a one-time state filing fee of $54.
There are also ongoing fees (like a $18 Annual Report fee and potential business license fees), which we discuss below.
LLC Costs in Utah
| Requirement | Cost |
|---|---|
| LLC Name | $0 |
| Registered Agent | $0 or $125 per year |
| Certificate of Organization | $54 |
| Operating Agreement | $0 (free on our site) |
| EIN Number | $0 (free to the IRS) |
| Annual Report | $18 |
| Taxes | varies (filed and/or paid every year) |
The filing fee for a Utah LLC Certificate of Organization is $54
In Utah, forming an LLC requires paying the Secretary of State a $54 filing fee for the Certificate of Organization. This paper creates your LLC legally if it is accepted.
After formation, you only need to pay the $54 one-time charge; after that, you won't need to pay any more monthly or yearly fees to keep your Utah LLC active.
✎ Note:
LLCs represent the predominant business structure in Utah, chosen for their robust liability protection afforded to owners, making them highly favored among business entities.
The form used to establish an LLC can vary by state; it may be called the Certificate of Organization.
In Utah, it is specifically known as the Certificate of Organization. Despite these variations in naming, they all serve the same purpose to create your LLC legally.
Reserving a business name in Utah entails a fee of $0
The creation of your Utah LLC Name Reservation is completed simultaneously if you want to file online. An additional $0 filing fee is required for an online name reservation when filing online.
Remember to include the Name Reservation with your application if you want to file by mail.
But before forming your LLC, you have to wait for the Name Reservation to be approved. Even though filing by mail can save you a few bucks, it can take longer to form your LLC.
How much does a DBA cost? ($18)
In Utah, a DBA is filed with the town clerk rather than the Secretary of State. Therefore, the cost of a DBA will vary depending on the town where your LLC is doing business.
✎ Note:
A DBA, also known as a Trade Name, Fictitious Name, Assumed Name, or Fictitious Business Name, refers to the same concept.
★ Tip:
Obtaining a DBA for your LLC is optional and not a requirement.
Utah Registered Agent Fee ($0 to $125/ annually)
Under Utah law, every LLC formation requires the appointment of a Registered Agent.
Your Utah Registered Agent acts as the liaison for legal documents and state notifications on behalf of your LLC, necessitating a physical address within the state and availability during regular business hours.
You can appoint yourself, a trusted associate, or a family member as your Registered Agent without incurring additional expenses.
Alternatively, hiring a Registered Agent service costs between $100 and $300 per year. These services offer additional business support and safeguard your privacy.
Hiring a Registered Agent service is a good idea if:
- You lack a physical address in the state (Utah law mandates Registered Agents to have an address within the state).
- You prefer to keep your address private (some companies allow you to use their address for confidentiality).
Exclusive Offer!
Hire a Northwest Registered Agent to form your LLC for just $39 plus the state fee and receive a free year of Registered Agent service.
(Why is Northwest the best? Read our Northwest Registered Agent review)
LLC Operating Agreement Fee ($0)
A Utah LLC Operating Agreement functions as a written contract among the LLC's members. It outlines specific details regarding ownership, how the LLC is managed, and the distribution of profits.
Both Single-Member and Multi-Member LLCs should create an Operating Agreement, maintain it within their business records, and provide each member with a copy.
Online services generally charge between $50 to $200 for crafting an LLC Operating Agreement.
LLC EIN Number Fee ($0)
An EIN, also referred to as an Employer Identification Number or FEIN (Federal Employer Identification Number), is essential for handling tax filings, setting up an LLC bank account, and potentially facilitating employee hiring.
While some platforms may charge a fee, you can obtain an EIN for your LLC free of charge directly from the IRS. The process to apply online is simple and typically takes only a few minutes to complete.
Utah LLC Annual Report Fee ($18/year)
In Utah, the LLC Annual Report is referred to as the Periodic Report.
The state requires you to keep your LLC's information up to date by filing a Utah Periodic Report annually.
This keeps your LLC in good standing and compliance with state law so it can continue operating. You simply confirm the information on your Periodic Report, file it with the Utah Secretary of State, and pay the Periodic Report filing fee.
The Utah LLC Periodic Report is free annually. These costs are required each year for the duration of your LLC's existence.
✎ Note:
Other business entities may file different reports, but LLCs only need to file the Periodic Report each year.
Utah Business License and Permit Fees
The locations and industry sectors in which your LLC operates in Utah may require you to apply for additional business licenses or permits. For your LLC's specific operating area, for example, it may be necessary to obtain a city business permit.
Location and industry specifics can affect the cost of these licenses or permits. These costs are usually fair. Local governments such as towns, cities, or counties are responsible for administering some licenses and permits, while the state issues others.
LLC Taxes
Utah LLC owners face a range of tax obligations, leading to varying annual costs.
Some of the taxes LLC owners pay include:
- Federal taxes
- State income tax
- Local income tax
- Business taxes
- Self-employment taxes
- Sales and use tax
- Payroll tax (if you have employees)
- Property tax (if the LLC owns property)
The Taxes of Your Utah LLC taxes are affected by your industry and business activities, making it difficult to predict. Every business is different, and the taxes your LLC owes depend on your specific situation.
✎ Note:
Typically, a Single-Member LLC is taxed similarly to a Sole Proprietorship, while a Multi-Member LLC is taxed similarly to a Partnership.
Hiring an Accountant
Accounting fees can vary, but in general, expect to pay about $300 a year for basic tax returns and up to $900 for more comprehensive filings.
The best person to help you determine your small business tax liability in Utah is a certified accountant.
While accounting costs can vary, you should generally budget $300 for simple tax returns and up to $900 for more complicated filings annually.
Need to save time?
Consider hiring a professional to set up your LLC: Northwest Registered Agent offers LLC formation services starting at $39 plus the state fee.
(Find out why Northwest is the top choice for LLC formation)
✎ Note:
Accounting fees can vary, but in general, expect to pay about $300 a year for basic tax returns and up to $900 for more comprehensive filings. We recommend speaking with a few Utah accountants to make sure they can help you with all of your local, state, and federal tax needs. For more advice, see our comprehensive guide on how to find an accountant.
Utah Secretary of State
If you're curious about the expenses involved in starting a Utah LLC, feel free to contact the Utah Secretary of State for detailed information.
Utah LLC Costs FAQs
How much does an LLC cost per year in Utah?
All Utah LLCs need to pay $18 per year for the Annual Report (aka Annual Renewal). These state fees are paid to the Division of Corporations. This is the only state-required annual fee. You have to pay this to keep your LLC in good standing.
If you hired a Registered Agent service, you’ll have another annual fee to pay each year. This is usually about $125 per year.
Some LLCs may need a business license in Utah. This depends on your industry and where your LLC is located. You’ll need to check with your municipality to see if there are any annual fees for the business permits. Usually, professional licenses must be renewed every year.
Do I need to hire an attorney to form an LLC?
No, you aren’t required to hire an attorney to form your LLC in Utah. You’re allowed to form your LLC yourself if you’d like.
However, some people may want to hire an attorney if their LLC has a complex ownership or management structure, has investors, or requires industry-specific documentation.
A business attorney usually charges between $800 and $2,500 to form an LLC.
Should I hire an LLC formation service?
You aren’t required to hire a professional service company to form your LLC in Utah. You’re allowed to complete the Utah LLC formation process yourself if you’d like.
How do I start an LLC in Utah for free?
Unfortunately, you can’t start an LLC for free. You must pay the $54 Utah Certificate of Organization filing fee.
But you can get an LLC cheaply by filing your formation documents yourself. If you file the Articles of Organization online, you don’t have to pay any extra service fees to a company or other filing fees.
You’ll also save money by being your own Registered Agent and using our free Operating Agreement templates.
By forming your LLC yourself and being your Registered Agent, you can save over $250.
Keep in mind, just because a certain state has cheap LLC fees doesn’t mean it’s a good idea to form your LLC there. There are usually disadvantages to forming an LLC out of state. Check out what’s the best state to form an LLC for more information.
How much does a Utah business bank account cost?
It varies. Some banks charge monthly fees ($10 to $20 per month), but these can sometimes be avoided by meeting certain requirements. For example, if you make a certain number of direct deposits or maintain a specified minimum balance, then they’ll waive the monthly fees.
And you might be able to find a bank that doesn’t charge any monthly fees.
Before you open your LLC bank account, we recommend calling and asking if there are ways to avoid the monthly maintenance fees. You can learn more about LLC bank accounts in our guide.
How much is a Foreign LLC in Utah?
A Foreign LLC is an LLC formed in another state that must register (aka foreign qualify) in Utah. This is because the LLC is doing business in both states.
The Utah Foreign LLC cost is $54 for the foreign registration statement. This is the fee to register an LLC in Utah after it was first formed somewhere else.
Note: If you start a Utah LLC, it’s called a “Domestic LLC”. If you start an LLC somewhere else, it would be a “Foreign LLC” in Utah.
Is Utah a good state to form an LLC?
Yes, if you live in Utah or operate your business there. Even though Utah’s state fees are low (formation fee ($54) and annual fees ($18 per year)) and that’s appealing, it’s best to form a new business in the state where you do business. For most people, that’s the state where they live.
If you form your LLC in another state, you will then have to register it as a Foreign LLC – which means you’ll pay extra filing fees.
What are the steps to forming an LLC in Utah?
Here are the steps to starting an LLC in Utah:
- Choose an LLC business name and make sure it’s available
- Choose who will be your Utah Registered Agent
- File the Utah Certificate of Organization
- Complete and sign an LLC Operating Agreement
- Get a Tax ID Number (EIN) from the IRS
- Open an LLC bank account
- Check whether you need a business or sales tax license in Utah