The goal of this post is to educate the many new business owners who are interested in learning more about setting up a business entity in Utah.
Business Entity Search
The Secretary of State website has a database that you can do a Utah business entity search. The database offers business information such as business name, address, entity number, officer, status description, and much more. This is a great way to find out who you are in competition with or whose cooperation you will need to do business in Utah.
Utah SOS Business Search
It is recommended that you start your business search using the Utah Secretary of State website. The site has a database of businesses and corporations in Utah. You can also find out information about business names, addresses, phone numbers, officers, and much more. This is a great way to find out who you are in competition with or whose cooperation you will need to do business in Utah.
How to choose a business entity in Utah?
You will need an Employer Identification Number (EIN) to identify a business entity. The main purpose of registering for an EIN is for tax collection purposes. This number is used when registering with state and federal agencies.
There are three main business entities that you can register in Utah:
A general partnership is the most common business entity that businesses register in Utah.
This type of entity is a company with a shareholders management team which are usually two people who agree to share their money and obligations.
Limited Liability Partnership
The Limited Partnership is similar to a general partnership except that it has special tax rules. Limited partnerships can have only one shareholder who must be a natural person in order for it to be legal.
Limited Liability Company (LLC)
The LLC is the most popular business entity in Utah today. It combines the advantages of a partnership and a corporation. LLCs are very flexible and easy to manage.
Now that you have an idea of the different business entities, it’s time to fill out the necessary paperwork.
Step 1. Filing Certificate of Organization
The first thing you need to do is fill out a Certificate of Organization. This form identifies the type of business entity you are trying to register, specifies the business names and addresses of your business, and asks for your Trade Name. The Secretary of State will issue your Certificate of Organization within 10 business days from the time you completed filing it. Utah Division of Corporations will register your trade name and provide you with information about the entity once you have selected it.
Step 2. Obtain a Business License
Once you’ve completed the forms, it’s time to choose a Utah business license.
You’ll notice that there are different types of business licenses in Utah. You probably don’t want to pay for a license if you’re just starting out.
Business Privilege License
The most common business license in Utah is the Business Privilege tax which costs around $5. This license enables you to operate your business within the state of Utah and gives you the right to carry on a business in Utah.
Sales and Use Tax license
If you plan on selling products or services and making a profit, then you will need to register for the Sales and Use Tax license which costs around $300. This license will allow you to collect sales tax on products sold in Utah.
The vehicle licenses cost around $75-$300 depending on the type of car that is used for business commerce.
Another important thing to note is that your business license must be renewed every three years. You need this document if you plan on doing any additional business in Utah after the initial registration has expired.
If you want to conduct business as a DBA, you will need a DBA license that costs $300 and can be used to register your business name, conduct business, and open bank accounts. DBA stands for “doing business as,” a term that many companies use to describe their new names.
Step 3. Utah Business Name Search Service
If you have chosen an LLC as your business entity, then you will need to choose a business name for your LLC.
You will also need to check your business name availability. There are plenty of ways that you can do this but the easiest way is such a business search tool, as the ULS (Utah Legal Services) website.
You can enter your criteria on the corporation search page and receive search results if there is another company with a similar or same business name in Utah. This will save you time from having to go through the process of choosing a new business name for your LLC.
Step 4. Choose a State Tax Code
After your business name registration, you have to determine which state tax code applies to your business. If you choose to do business in several states, then it may be easiest to register with the state tax code of the state that your main office is located in.
Articles of Incorporation
Articles of Incorporation (Articles) are the main documents filed with the Secretary of State. They contain contact information about your business, including the business name and location.
Certificate of existence
A Certificate of Existence is created from the Articles and is used to show that the filing entity has met minimal requirements to begin a business.
This document contains only basic information about your business, including your name and address.
In conclusion, the steps that you have just learned in this blog post will help you get your business off the ground in Utah.
With these small steps, you can be confident that everything is in order and begin attracting customers.