A limited liability company is a business entity that protects its owners, who are known as members, from liability for financial obligations as well as most forms of litigation. The LLC also provides benefits in the form of simplified taxation. By default, LLCs are not taxed as separate entities by the federal government; members declare their net incomes from the business on their personal income tax returns. However, members can elect to have their LLC taxed as a corporation. Setting up a limited liability company is a relatively easy matter in most states including Utah.
Fit your business needs with the right LLC package
Choose a name for your LLC. By Utah law, the name must include the words “Limited Liability Company,” “Limited Company,” or the abbreviations "L.C." or "L.L.C." If you are not sure if your company name has already been registered, you can search the Utah Business Search website (see References) for the names of all companies either registered or doing business in the state.
Draw up articles of organization for your company. The articles must list your name, your business address and your business purpose. You must give the names and address of members, as well as the name and address of your designated registered agent, who is the individual or company authorized to accept legal process and papers on your behalf. You may fill out a fill-in-the-blank form offered online (see References).
File the articles of organization with the Utah Department of Commerce, Division of Corporations and Commercial Code. To file by mail, send the articles to S.M. Box 146705, Salt Lake City, UT 84114-6705. To file in person, you must visit the physical address of 160 East 300 South, Main Floor, Salt Lake City. You may also file the articles of organization online.
Submit the filing fee, which is $70 as of 2010. You may also request expedited processing for a fee of $145. You may pay by check or credit card.
Draw up and adopt your company's operating agreement by the consent of all members of the company. The operating agreement lays out the responsibilities of all members of the company, a basic mission statement and the division of net income among the members. Although not required by law in Utah, an operating agreement is strongly advised.