How to Form an LLC in Utah | 2025

With its strong economy, favorable tax environment, and high survival rates for small businesses, Utah is an excellent choice for many entrepreneurs looking to start an LLC. Strategically located in the western United States, it offers access to expanding markets and countless growth opportunities.

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Let’s look at each stage of the LLC formation process in Utah, from naming to registration.

How to Form an LLC in Utah in 7 Steps

The process for starting a domestic limited liability company in Utah is relatively simple and easy to follow.

Step 1: Pick your business name

Before you file any paperwork, select a name for your business. The state of Utah has several policy requirements associated with the naming process:

• The name must be available for commercial use. Utah’s Department of Commerce offers a Name Availability search engine to help you check.
• The name must include a mandatory descriptor. Your company name needs to include the words “limited liability company” or an acceptable abbreviation like “LLC,” “L.L.C,.” “LC,” or “L.C.”
• The name can’t include any prohibited or restricted terms. For example, it can’t allude to any governmental authority with words like “FBI” or “state,” and the use of terms like “bank” or “college” requires prior approval. ¹
  Once you have confirmed the chosen name is available, you can submit a $22 processing fee to file an Application for Reservation of Business Name. While this document doesn’t register your business name, it does ensure that the name is held for the next 120 days.²

Step 2: Get a registered agent

Next, you’ll need to find a registered agent.

Think of this individual as your business’s main point of contact with the state. If the state needs to reach you—say, due to a legal filing—your registered agent ensures that communication happens promptly.

Your registered agent will also receive other types of formal communication from the government, including tax forms and service of process. In Utah, you can act as your registered agent as long as you meet the following requirements:

• At least eighteen years of age
• A physical street address in the state
• Available during regular business hours

If you don’t live in the state or if you don’t want to take on the added responsibility associated with acting as your registered agent, you can hire an external individual or company to perform the service for you. Of course, this will come at an extra cost.

Step 3: Submit your Certificate of Organization

Now, it’s time to officially form your LLC.

Mail, fax, or file your Certificate of Organization with the Division of Corporations and Commercial Code in person. You can also submit your paperwork through an online Business Registration portal. To complete the form, you’ll need to pay a nonrefundable processing fee of $59 and input the following information:

• The name of your LLC
• Your principal office address
• The name and address of your registered agent
• The name and address of members
• Business purpose³
  Processing times vary, though you can stay up to date with current estimates through the Utah Division of Corporations and Commercial Code’s official website.

Step 4: Register for state taxes

As soon as your application is approved, you’ll receive a business entity number for tax and compliance purposes. Congratulations!

Now, your LLC is officially registered in the state of Utah.

Next, register your LLC with the Utah State Tax Commission through their Taxpayer Access Point (TAP). This online portal makes it easy to register for the taxes that apply to your LLC, such as sales tax and state income tax. If you plan to hire staff, you can use the platform to register for payroll taxes.

In addition to your tax obligations, you’ll need to file an annual report with the Utah Department of Corporations and Commercial Code to ensure your LLC stays in good standing with the state. The processing fee associated with filing the annual report is only $18.⁴

Step 5: Get an Employer Identification Number (EIN) from the IRS

Also known as a federal EIN (FEIN) or federal tax identification number (FTIN), most businesses are required to register for an EIN through the Internal Revenue Service (IRS). Single-member LLCs are exempt from these processes because they can file taxes using their personal Social Security Numbers.

If you’re looking to protect your privacy and safeguard against identity theft, it’s a good idea to register for an EIN as a single-member LLC. As you look to hire employees in the future, this step will prove all the more critical for your business operations.

Step 6: Open a separate business bank account

Opening a separate business bank account is one of the simplest and most effective ways to ensure a clear distinction between personal and business finances. While it’s not a requirement, it’s still considered an important step for any financially responsible business owner.

A dedicated business account allows you to manage your income and expenses more effectively. Reinforcing the separation between your personal and business finances increases personal liability protection. Managing your business finances and compiling financial documents is streamlined, ensuring you maintain accurate financial records.

Step 7: Establish an LLC Operating Agreement

While not legally required in most states, an operating agreement is highly recommended for both single-member and multi-member LLCs. By reinforcing the separation between business and personal assets, these documents protect members’ liability. Clearly defining a business structure helps prevent disputes in the future, further establishing your credibility with potential partners and investors.

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How to open a business account for my LLC (US and non-US residents)

If you want to open a business account, there are a few options available. However, it can be tricky getting US account details as a non-US resident. You can read the full guide on how to open a business bank account for LLC for the best tips.

One option to consider is the Wise Business account. Wise provides convenient business accounts that can be a great option for resident and non-US resident LLCs.

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Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. You can open an account online and get US account details to receive payments like a local.

Moreover, the Wise Business account enables you to send, receive, and hold non-US currencies with ease. All in one place.

Some key features of Wise Business include:

Better visibility and organization of business finances. This is helpful for account reconciliations and audits. Administration controls for users. It’s possible to allow team members to carry out specific tasks. Receive payments from e-commerce platforms (such as Amazon or via Stripe). Create invoices using the Wise invoice generator or invoice templates. Features for bill payment, including a QuickBooks Bill Pay connection. Bill payments will be synced, matched, and categorized in QuickBooks for simple reconciliation. Signing up to Wise Business allows access to BatchTransfer which you can use to pay multiple invoices in one go.

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What are the business requirements for a Utah LLC?

The business requirements for starting a Utah LLC are relatively straightforward:

• Your LLC name must be unique and distinguishable from other registered entities in Utah, and it must include an appropriate entity identifier, such as "LLC” or "Limited Liability Company.”
• Every Utah LLC must designate a registered agent with a physical address in Utah and who is at least eighteen.
• To officially establish your LLC, you file a Certificate of Organization with the Utah Division of Corporations and Commercial Code and pay the requisite processing fees.
• Utah LLCs must file annual reports with the Division of Corporations and Commercial Code to maintain good standing.

What are the benefits of starting an LLC in Utah?

Starting an LLC in Utah comes with several key advantages:

• Limited Liability Protection: Personal assets are safeguarded from business debts and legal claims, so business owners can focus on growth without risking their personal property.
• Pass-Through Taxation: Since profits and losses are reported on personal tax returns, LLC members avoid the double taxation typically associated with corporations.
• Business-Friendly Environment: A robust economy, low filing fees, and manageable compliance requirements are ideal for entrepreneurs. Also, Utah’s favorable tax climate includes exemptions like the absence of franchise taxes for LLCs, reducing costs for business owners.

How much does it cost to start an LLC in Utah?

Utah has relatively low costs for forming and maintaining an LLC. The filing fee for Articles of Organization is approximately $59, and annual report fees are as low as $18. However, you may run into additional costs if you hire an external party as your registered agent.

Can I open an LLC in Utah without living there?

Yes, you can open an LLC in Utah without living there. That said, there are strict requirements that you’ll need to follow to remain in good standing with the state.

Can a Nonresident open a company in Utah?

Yes, non-residents can open a company in Utah. However, you’ll need to appoint a Utah-based registered agent to receive official documents on the LLC’s behalf and provide a US business address during the registration process.

Comparison with Other States

Depending on your business goals, privacy objectives, and tax preferences, you may find some states more suitable for forming an LLC than others. Here’s a look at how Utah compares with other states in the region, including Colorado, Wyoming, and Arizona:

Feature	Utah	Colorado	Wyoming	Arizona
Filing Fee	$70	$50	$100	$50
Annual Report Fee	$18	$10	$60	No annual reporting requirements
Privacy	Moderate	Moderate	High	Moderate
Tax Environment	State income tax: 4.85%	Flat 4.4% state income tax	No income or franchise tax	No franchise tax
Best For	A balance of affordability and tax incentives	Low entry costs and thriving economy	Asset protection & anonymity	Low regulatory burdens and no annual reporting

FAQ: Utah LLC

Privacy Protections for Utah LLCs

Utah LLCs provide strong privacy protections for business owners. The state doesn’t require LLC members to list their names and addresses on the Certificate of Organization, so it’s possible to form anonymous LLCs. Owners can also protect their privacy by hiring a registered agent to act as the organizer and using a virtual business address instead of their own.

Why Do People Use Utah for LLCs?

LLC owners choose Utah for its business-friendly climate, straightforward formation process, and tax advantages. The state offers limited liability protection for LLCs to shield personal assets from business debts and lawsuits. The state also supports pass-through taxation, so owners avoid double taxation.

Is a Utah LLC Tax-Free?

No, a Utah LLC isn’t tax-free. LLC owners benefit from pass-through taxation—profits are taxed at the individual level rather than at the corporate level—they may still be subject to state income tax, local taxes, and industry-specific taxes depending on their operations.

What Are the Disadvantages of a Utah LLC?

While Utah LLCs offer many benefits, there are some drawbacks:

• Limited privacy compared to some states: Although member information can remain private, states like Delaware provide even stronger anonymity protections
• State income tax: Unlike states like Nevada or Wyoming with no corporate income tax, Utah imposes a flat income tax rate on businesses operating within the state
• Ongoing compliance costs: Annual fees and periodic reporting requirements add to administrative responsibilities

The Bottom Line

Registering an LLC in Utah is a simple and low-cost process that involves selecting a name, finding a registered agent, and filing the requisite paperwork.

By following these steps, you’ll get started, stay compliant, and maintain operational success over the long term.

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Sources:

1. Business Name Conventions and Policies
2. Business Name Information
3. Utah Certificate of Organization
4. Utah Annual Report / Renewal Form