Utah is one of the cheapest and easiest states to form an LLC. The filing fee is $59, processing is fast, and the annual upkeep is minimal. But forming the entity is only the first step. There’s a handful of other things you need to set up depending on your business, and most online guides skip over them.
Here’s the full picture.
Step 1: Choose a Name
Your LLC name must be distinguishable from any other business registered with the Utah Division of Corporations. You can search existing names at corporations.utah.gov. Tip: Don’t get stuck on a business name! I’ve seen too many people waste time and energy trying to find the “perfect” name. Just pick something you like that meets the requirements and move on. You can always change it later if you need to.
Requirements:
- Must include “Limited Liability Company,” “LLC,” or “L.L.C.”
- Cannot include words that imply it’s a different type of entity (like “Corporation” or “Inc.”)
- Cannot include words like “bank,” “insurance,” or “university” without proper licensing
Optional: You can reserve a name for 120 days by filing a Name Reservation with the Division of Corporations for $22. But you can also just form your business instead of reserving it first. For 99% of people, just form the LLC and skip the reservation step.
Step 2: Choose a Registered Agent
Every Utah LLC must have a registered agent with a physical address in Utah. This is the person or company designated to receive legal documents and official state correspondence on behalf of the LLC.
Your options:
- Be your own registered agent if you have a Utah address. This is free but means your address is public record, and someone needs to be available at that address during business hours.
- Hire a registered agent service. This typically costs $50 to $300 per year. It keeps your personal address off public filings and ensures you never miss important notices. If you’re paying more than about $150/year, you’re probably overpaying unless you’re also getting other real services.
Step 3: File the Certificate of Organization
This is the official formation document. You file it online through the Utah Division of Corporations.
How to file:
- Go to businessregistration.utah.gov
- Log in with your UtahID (or create one)
- Select “Formations” from the left menu, then “Domestic”
- Select “Limited Liability Company” as the entity type
- Follow the step-by-step prompts
What you’ll need:
- LLC name
- Registered agent name and address
- Principal office address
- Organizer name and address
- Whether the LLC is member-managed or manager-managed
Filing fee: $59
Processing time: Typically 1-3 business days for online filings.
Step 4: Get an EIN (Employer Identification Number)
An EIN is essentially a Social Security number for your business. You need one to open a business bank account, file taxes, and hire employees.
How to get one:
- Apply online at irs.gov/EIN
- It’s free and you get it immediately
- Available Monday through Friday, 7 AM to 10 PM Eastern
Do not pay a service to get an EIN for you. It’s free directly from the IRS and takes about 5 minutes.
Step 5: Draft an Operating Agreement
Utah does not legally require an operating agreement, but you absolutely need one. This is the document that governs how your LLC is run, how profits and losses are split, what happens if a member leaves, and how decisions are made.
Without one, you’re defaulting to Utah’s LLC Act, which may not reflect what you and your co-owners actually agreed to. Even single-member LLCs should have an operating agreement to reinforce the separation between you and the business.
An operating agreement should cover:
- Ownership percentages and capital contributions
- How profits and losses are allocated
- Management structure (member-managed vs. manager-managed)
- Voting rights and major decision thresholds
- What happens when a member wants out (buyout provisions)
- Dissolution procedures
- Distribution rules
This is one of the most important documents your business will have. A template from the internet is better than nothing, but getting one drafted or reviewed by an attorney is strongly recommended.
Step 6: Open a Business Bank Account
Go to a bank with your Certificate of Organization, EIN confirmation letter, and operating agreement. Open a dedicated business checking account.
Do not use your personal bank account for business transactions. Commingling personal and business funds is one of the fastest ways to lose your liability protection. If someone sues your LLC and can show you treated it like a personal piggy bank, a court can “pierce the corporate veil” and come after your personal assets.
Step 7: Register with the Utah State Tax Commission
This is the step most guides gloss over. Depending on what your business does, you may need to register for one or more state tax accounts.
File Form TC-69 (Utah State Business and Tax Registration) online at osbr.utah.gov or through the Tax Commission at tax.utah.gov.
You may need to register for:
Sales and Use Tax License
Required if: You sell tangible goods or certain taxable services in Utah.
If you’re selling products (online or in person), you need a sales tax license. Utah’s combined state and local sales tax rate varies by location but generally ranges from 6.1% to 9.05%. You collect sales tax from customers and remit it to the state, usually on a quarterly basis.
Employer Withholding Tax Account
Required if: You have employees.
If you hire W-2 employees, you must register to withhold Utah state income tax from their wages. You’ll report and remit withholding taxes to the Utah State Tax Commission, typically on a quarterly basis (monthly if your withholding exceeds certain thresholds).
Unemployment Insurance (UI)
Required if: You have employees.
Register with the Utah Department of Workforce Services (DWS) at jobs.utah.gov. You’ll receive a UI account number and will need to file quarterly wage reports and pay unemployment contributions.
Workers’ Compensation Insurance
Required if: You have employees (and strongly recommended even for single-member LLCs with contractors).
Utah requires most employers to carry workers’ compensation insurance. You can obtain this through a private insurance carrier or the Workers’ Compensation Fund of Utah.
Step 8: Get a Local Business License
Utah itself does not issue a general state business license, but most cities and counties do. Check with your local municipality.
For example:
- Lehi: Business license through the city’s Community Development department
- Salt Lake City: Business licensing through SLC’s Finance department
- Provo: Business license through the city’s Development Services
Home-based businesses typically still need a business license (sometimes called a “home occupation permit”). Don’t assume you’re exempt just because you work from home.
Costs vary but are usually $25 to $100+ depending on your city and business type.
Step 9: File Annual Reports
Utah requires every LLC to file an annual report with the Division of Corporations. This is due on the anniversary of your formation date each year.
- Filing fee: $18 (online)
- Filed at: corporations.utah.gov
- Late fee: If you don’t file, your LLC can be administratively dissolved
This is simple and takes about 5 minutes, but set a reminder. Missing it can result in your LLC losing its good standing.
Step 10: Make a Tax Election (If Applicable)
By default, a single-member LLC is taxed as a sole proprietorship (disregarded entity) and a multi-member LLC is taxed as a partnership. But you have options.
S Corporation Election
If your business is generating meaningful profit (generally $40,000+ in net income after paying yourself a reasonable salary), an S-Corp election can save you significant money on self-employment taxes.
You elect S-Corp status by filing Form 2553 with the IRS. This must be filed within 75 days of formation or by March 15 of the tax year you want it to take effect. Utah recognizes the federal S-Corp election automatically.
C Corporation Election
Less common for small businesses, but relevant if you’re planning to reinvest heavily in the business or raise venture capital. Elect by filing Form 8832 with the IRS.
This is one of the most consequential decisions you’ll make for your business. The right election depends on your income level, how you plan to pay yourself, and your growth plans. Talk to a tax attorney or CPA before making this call.
The “Extra Stuff” Checklist
Here’s a quick reference for the items that apply depending on your situation:
- Selling products or taxable services? Get a Utah Sales Tax License
- Hiring employees? Register for withholding tax, UI, and workers’ comp
- Working from home? Get a home occupation permit/business license from your city
- Operating in a specific city? Get a local business license
- Using a name different from your LLC? File a DBA (Doing Business As)
- Hiring independent contractors? Issue 1099s at year end (no state registration needed, but track it)
- Providing professional services? Check if you need a state professional license (contractors, real estate, cosmetology, etc.)
- Selling alcohol, tobacco, or firearms? Get the appropriate federal and state permits
- Handling food or beverages? Get a food handler’s permit and local health department approval
- Operating a vehicle for business? Get commercial auto insurance and potentially a DOT number
What It Costs (Summary)
- Certificate of Organization (formation): $59
- EIN: Free
- Name Reservation (optional): $22
- Registered Agent (if not self): $50 - $300/year
- Annual Report: $18/year
- Business License (city): $25 - $100+
- Sales Tax License: Free to register
- Operating Agreement (attorney-drafted): Varies
Total minimum to get up and running: under $100. Utah is one of the most affordable states in the country to form an LLC.
Common Mistakes to Avoid
- Skipping the operating agreement. Even if you’re the only member. Get it in writing.
- Using your personal bank account. Open a separate business account on day one.
- Forgetting the annual report. $18 once a year. Set a calendar reminder.
- Not registering for sales tax. If you sell anything tangible, you need a sales tax license before you make your first sale. The state will come after you for uncollected taxes.
- Choosing an entity structure or tax election based on a blog post. Every situation is different. What works for your friend’s business might cost you thousands in your situation.
- Paying hundreds of dollars to a formation service. The state filing is $59 and straightforward. The EIN is free. Save your money for things that actually matter, like an operating agreement or tax advice.
A Note on BOI (Beneficial Ownership Information) Reports
You may have heard about the Corporate Transparency Act requiring LLCs to file beneficial ownership reports with FinCEN. As of early 2025, FinCEN has exempted all domestic entities and their U.S. person beneficial owners from BOI reporting requirements. You do not need to file a BOI report at this time. This could change, so keep an eye on it, but for now it’s one less thing to worry about.
Need Help?
If you’re forming a business or you already have one and you’re not sure you set it up right, we offer free office hours where you can talk through your specific situation. No bill, no pitch. Just a conversation.
Book a time at blackhill.law/office-hours
This article is for informational purposes and does not constitute legal advice. Every business is different. For advice specific to your situation, consult with an attorney.