How to Start an LLC in Utah


– [Instructor] How to form an LLC in Utah. Utah is an excellent
place to form a new LLC. With low corporate taxes and great access to venture capital. Utah ranks third in ease of
doing business in the US. Every state has slightly
different requirements for forming an LLC. Follow along closely to
learn the required steps for creating your own
Limited Liability Company in the State of Utah. (soft piano music) There are two ways to form an LLC in Utah. You can form one yourself. Or you can hire a
service to do it for you. Let’s start by looking at
the five basic requirements to form an LLC in Utah on your own. You can also find these
steps in more detail on our website linked in
the description below. One, name your LLC. Every state has its own
rules about what kind of names are allowed for LLCs. In general you will need to
observe these naming guidelines. Your must include the phrase
Limited Liability Company or one of its abbreviations, LLC or L.L.C. with a period following each letter. Restricted words such as Bank,
Attorney, Law Office, etc. may require additional paperwork and may also need a licensed professional to be part of the LLC. Your name cannot include
words that could confuse your LLC with a government agency. Such as FBI, Treasury,
State Department, etc. You cannot use a name that
has already been registered. To see if your name is
available in your state, you’ll need to do a name search. This free service is available on your state’s Secretary
of State website. Check out our free guide for finding the direct link to your state. We also recommend that you check to see if your business name is
available as a web domain. Even if you don’t plan to
make a business website today you may want to buy the URL
in order to prevent others from acquiring it. Two, choose a registered agent. Utah requires that you
nominate a registered agent for your LLC who is your
businesses’ point of contact with the state. The registered agent can be an individual within the company including yourself. Or you can hire a professional
service authorized to do business in Utah. They will send and receive
legal papers on your behalf. These documents include
official correspondence like legal summons, and document filings. Which your registered agent will receive and forward to you. Your registered agent will help remind you to file the necessary reports. Failure to properly maintain your LLC can result in fines and dissolution. So this assistance is valuable. Three, file the Certificate
of Organization. To register your Utah
LLC you will need to file the Certificate of Organization
with the State of Utah. This can be done online or by mail. You should also decide whether your LLC will be member-managed or manager-managed. Member-managed means
all members of the LLC manage the company. This is good for small
organizations where everyone is involved in the day-to-day operations. The second option is manager-managed, where individuals are
appointed to manage the LLC. This is appropriate for
larger organizations. Where not everyone is
involved in the day-to-day affairs of the business. Four, create an operating agreement. Although not every state requires it you should always create
an operating agreement to establish ownership
terms and member roles for your LLC. This foundational document
is the core of your LLC and will help you
maintain your organization as well as further establish your LLC as a separate legal entity. There are six main sections
of an operating agreement. Organization outlines
when and where the company was created, who the members are, and how the ownership is structured. Management and Voting
addresses how the company is managed as well as
how the members vote. Capital Contributions covers which members financially support the LLC and how more funds will
be raised in the future. Distributions outlines how the company’s profits and losses are
shared among members. Membership Changes describes the process for adding or removing members as well as if, and when,
members can transfer their ownership shares. And Dissolution, which
explains the circumstances in which the LLC may be dissolved. An operating agreement
is an internal document, it does not need to be
filed with the state. However, it should be updated every time there is a change in membership or management at the company. You can download a free
sample operating agreement or create a custom one using our free operating agreement tool
at Howtostartanllc.com. Five, obtain an EIN. Lastly, you’ll need to get an Employer Identification Number or EIN from the IRS. Also know as a Federal
Tax Identification Number. Your EIN is like a Social
Security number for your LLC and it’s how the IRS tracks
your business for tax purposes. An EIN is also necessary to
open a business banking account and legally hire employees. EINs are free of charge and can obtained from the IRS online or through the mail. And with that, you’ll have
formed a Utah LLC on your own. Option two, hire a professional service. The second way to create
a Utah LLC is to hire a professional service to
create your LLC for you. Hiring a professional
service to file your forms and act as your registered
agent for the LLC will cost you an additional $50-$150. However, there are several benefits to working with a pro. A hired registered agent helps
with getting your reports filed on time, helps you stay organized by keeping your business mail separate, and is available at all
regular business hours to accept official mail and legal papers on your LLC’s behalf. A final and important additional benefit of using a service is privacy. A professional service
will provide a level of privacy by withholding
your personal name and home address from the
LLC’s contact information. There are many reasons why you might not want your personal
information easily accessible and associated with your business. Hiring a professional
LLC formation service is an easy way to accomplish this. Now that you’ve seen the
different requirements and ways you can form an LLC in Utah. Visit our site and take
some time to research your options and establish
a solid foundation for your business activities. Click on the links in
the description below to research the top five
professional formation services. Or get more information on how to form a Utah LLC on your own. Now you know all the steps
to form an LLC in your state. For our more detailed guide,
go to Howtostartanllc.com. You can also create an operating agreement and use our business
plan tool free of charge. Give the video a like
if you found it useful, and subscribe if you’d like to see more, and if you have questions or encounter any roadblocks leave a comment below. Good luck in starting your small business. (slow peaceful music)

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