Why form a Utah Corporation?
Corporations have been around for many years. Many individuals form corporations in order to grow their company to bigger and better things. Corporations also serve one major important role as well. They provide limited liability protection for its owners, shareholders, and directors. The corporation provides a separation from the individuals associated with the company and therefore the owners/directors are not responsible for the debts and obligations of the company. So your personal assets are protected should the corporation be sued.
Guidelines on naming your corporation
A Utah Corporation name must include Inc, Corp, Corporation, Incorporated, Ltd, or Limited. Utah is generally flexible when it comes to distinguishing names, for example they would see the difference between “Queen IV, Inc” and “Queen 4, Inc.” Names must be distinguishable from other corporations, LLC and LLPs. The company name is not distinguishable by differences in punctuation, conjunctions, or prepositions. Also, the name is not distinguishable by using different legal descriptions such as Inc vs. Corp vs. Incorporated etc. There also may be words such as “bank”, “insurance”, and other words that are regulated and require prior approval for its use as a business name.
What is a registered agent?
A registered agent is an individual that is a resident of the state where the entity is filed. They serve as the point of contact person for the Secretary of State to serve process to. The registered agent must have a physical address. If a registered agent can't be obtained or you can't provide a physical address, third party companies can provide that service to you for a fee. Most individuals who start their corporation will serve as their own registered agent.
What is required to maintain Corporate Status?
The secretary of state has regulations for corporations for them to maintain good standing. The corporation must hold annual shareholder meetings and document these meetings with minutes. There are annual filing fees associated with maintaining a business in Utah. Failure to meet these requirements may result in a cancellation or suspension of the corporation.
How do I set up a company as a subchapter S corporation?
Form 2553 (PDF), Election by a Small Business Corporation allows a C-Corporation to change its tax status. The company goes from "double taxation" company to a "pass through" taxation company. Pass through taxation means that all revenue is passed through the corporation and reported on the individual owners' personal income tax. Several requirements must be met before you can elect S corporation status.
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