Starting an LLC in Utah comes with more costs than just filing the initial paperwork. But it doesn’t have to be as expensive as you think.
We explain all of the initial and ongoing LLC costs below, as well as give you tips on how to save money.
How much does an LLC cost in Utah?
Note: The state of Utah changed their LLC fees on July 1, 2022. This page reflects the correct information.
It costs $54 to form an LLC in Utah. This is a fee paid for the Utah Certificate of Organization.
You’ll file this form with the Utah Division of Corporations. And once approved, your LLC will go into existence.
In addition to this LLC filing fee, there are other LLC costs to be aware of when forming a Utah LLC (Limited Liability Company).
Costs to forming a Utah LLC
There is a $54 one-time state filing fee to form an LLC.
After that, there are also ongoing fees (like a $18 Annual Report fee), which we discuss below.
LLC Costs in Utah
|Certificate of Organization||$54|
|Registered Agent||$0 or $125 per year|
|Operating Agreement||Free on our website|
|EIN Number||Free from the IRS|
|Annual Report||$18 per year|
Utah LLC Certificate of Organization Filing Fee ($54)
Starting an LLC in Utah costs $54. This is the state filing fee for a document called the Utah Certificate of Organization.
The Certificate of Organization is filed with the Utah Division of Corporations. And once approved, this is what creates your LLC.
The $54 fee is a one-time fee. You don’t have to pay any monthly (or annual) fees to start your Utah LLC.
Note: LLCs are the most common business structure used in Utah. They are the most popular business entity because they offer liability protection for the LLC Members (owners).
Utah business name cost ($0)
Naming your Limited Liability Company doesn’t cost anything. The Utah Division of Corporations doesn’t require you to file an LLC Name Reservation or anything like that.
Your business name is approved (at no extra cost) when your Certificate of Organization is approved by the state.
Note: If you file your LLC using OneStop, one of the steps is filing a business Name Reservation for $22. The cost of the Certificate of Formation filing is then discounted to $32 so you’re still only paying $54 total.
Check out our Utah LLC Name page for information on Utah business name rules.
How much does a DBA cost? ($18)
A DBA (aka Business Name Registration) is filed with the Utah Division of Corporations using the Business Name Registration Form. The fee is $18 to get a DBA for your LLC.
Tip: You aren’t required to get a DBA for your LLC. It’s optional. Read our article for more information: Do I need a DBA?
Utah Registered Agent Fee ($0 or $125/year)
Utah law requires that you designate a Registered Agent when forming your LLC.
A Utah Registered Agent is a person or company who receives legal documents and state notices for your LLC. A Registered Agent needs a street address in the state and should generally be available during normal business hours.
There is no additional cost if you will be your own Registered Agent, or have someone you know be your LLC’s Registered Agent.
However, you have the option of hiring a Registered Agent service. This will cost you about $125 per year. But Registered Agent service companies offer other helpful business services and can protect your privacy.
Hiring a Registered Agent service is a good idea if:
- You don’t have an address in the state
- Utah law requires Registered Agents to have a physical address in the state
- You want to keep your address off public record
- Depending on which company you hire, you may be able to use their address to keep your address private
LLC Operating Agreement Fee ($0)
A Utah LLC Operating Agreement is a written contract between the LLC Members. Operating Agreements include detailed information about LLC ownership, how the LLC is managed, and how profits are distributed.
Single-Member LLCs and Multi-Member LLCs should draft an Operating Agreement, keep it with their business records, and give a copy to each Member.
Most websites charge $50 – $200 for LLC Operating Agreements.
Here at LLC University®, we offer free LLC Operating Agreement templates for Member-managed and Manager-managed LLCs.
LLC EIN Number Fee ($0)
An EIN Number is also known as an Employer Identification Number (EIN) or a Federal Employer Identification Number (FEIN).
This number is used to file income taxes, to open an LLC bank account, and to hire employees (if applicable).
Although many websites charge a service fee to help you get an EIN for your LLC, it can actually be done for free.
You can obtain an EIN for your LLC from the Internal Revenue Service (IRS) at no cost. The online filing can be completed in a few minutes.
Utah LLC Annual Report Fee ($18/year)
Utah requires you to keep your LLC’s information up to date by filing an Annual Report (also called the Annual Renewal in Utah).
This keeps your LLC in good standing and in compliance with state law so it can continue operating. You simply confirm the information on the Annual Report, file it with the Utah Division of Corporations, and pay the Annual Report fee.
How much does a Utah LLC cost per year? The Utah LLC Annual Report costs $18 per year. This fee is paid every year for the life of your LLC.
Utah Business Licenses and Permits Fees (varies)
Depending on where your LLC does business in Utah and the industry you’re in, you may need to obtain a business license and/or permit. For example, many businesses in Utah need a sales and use tax license to collect sales and use tax on products sold directly to consumers.
The costs for your business license or permit will vary depending on location and industry, but usually the fees are not very high.
Some licenses and permits are issued at the state level by the Utah Department of Commerce, and others are issued by a municipality (the city or county).
Please see our Utah Business License page for more details: Utah Business License.
LLC Taxes (varies)
There are many different types of Utah LLC taxes that owners must pay, so this annual cost varies widely.
Some of the taxes LLC owners pay include:
- Federal income tax
- 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)
Your Utah LLC taxes depend on your industry and amount of business activity, so we’re not able to provide an estimate. Every business is different, and your specific circumstance determines what taxes apply to your LLC.
How is an LLC taxed in Utah? By default, a Single-Member LLC is taxed like a Sole Proprietorship. And a Multi-Member LLC is taxed like a Partnership. The way your LLC is taxed by the IRS is the same as how it will be taxed by the Utah State Tax Commission.
Hiring an Accountant
How much your small business pays in taxes is best determined by working with a qualified accountant in Utah.
The amount you’ll pay your accountant will vary. However, most accountants will charge between $300 per year for a simpler tax return, or up to $900 for more detailed filings.
Tip: We recommend speaking with a few accountants in Utah to make sure they can help you meet all your federal, state, and local tax obligations. For tips on finding an accountant, please see our guide on How to Find an Accountant.
LLC Formation Cost
The total Utah LLC formation cost is $54.
This is the amount you have to pay for the Certificate of Organization.
If you pay a company to form your LLC, you will have to pay their service fees in addition to the LLC state filing fees.
LLC Ongoing Costs
Your Utah LLC must file an Annual Report and pay the $18 fee every year.
This fee is paid to the Utah Division of Corporations. Filing the Annual Report keeps your LLC in good standing.
LLC owners pay several different types of taxes, like: federal income tax, state income tax, local income tax, self-employment tax, sales and use tax (if you sell products in Utah), and payroll tax (if your LLC has employees).
That means the annual cost for your business can vary widely.
We recommend hiring an accountant familiar with Utah small business taxes. That’s the best way to make sure your LLC pays the correct taxes to the IRS, as well as to the state and local governments.
The amount you pay your accountant can vary, but most small business owners pay their accountant between $300 and $900.
Registered Agent costs
Hiring a Registered Agent service for your LLC in Utah will cost you about $125 per year. Or you can be your own Registered Agent in Utah to save money.
If you’d like to hire a Registered Agent Service, we recommend Northwest Registered Agent.
Questions? Call the Utah Division of Corporations
If you have any questions about LLC costs, you can contact the Utah Division of Corporations at 801-530-4849.
Their hours are Monday through Friday, from 8am to 5pm Mountain Time.
Utah LLC Costs FAQs
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. And 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 license.
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.
You aren’t required to hire a professional service company to form your LLC in Utah. You’re allowed to form your LLC yourself if you’d like.
However, if you want to save time and make sure your LLC is filed correctly, we recommend hiring Northwest ($39 + state fee).
Northwest Registered Agent has excellent customer service and they include Registered Agent services free for the 1st year. They also offer other services, like an Operating Agreement and filing your Annual Report.
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. 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 own 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. In fact, 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.
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.
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 Foreign Utah LLC cost is $54. The form to file is called the Foreign Limited Liability Company Registration Statement
You can download the Foreign LLC form from the state’s Foreign LLC page: Utah Foreign LLC Forms.
Yes, if you live in Utah or operate your business there. Learn more: What constitutes doing business in Utah?
Even though Utah’s low formation fee ($54) and annual fees ($18 per year) are appealing, it’s best to form an LLC in the state where you do business. For most people, that’s the state where they live. Learn more: what’s the best state to form your LLC.
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.
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