Why start a Utah LLC?
Among the many advantages of forming a Utah LLC, the most notable is probably the liability protection the LLC provides. Your personal assets are important, and it’s also important to protect them from getting intertwined with anything involving your business. If your sole-proprietorship could not pay its debts, it is possible for creditors to come after your personal assets, though if an LLC is run correctly all your personal assets are protected.
Control risk and limit liability.
If your Utah LLC was named in a lawsuit there are legal provisions that help protect the members of the LLC. Operating a business without the protection of an LLC is a risk that many small business owners choose not to take. Ease the risk and stress by forming an LLC.
Tips for naming your LLC
An Utah Limited Liability Company name must include LLC or Limited Liability Company in their name. Names must be distinguishable from other corporations, LLC and LLPs that are active or reserved in Utah. Utah is generally flexible when it comes to distinguishing names, for example they would see the difference between “Queen IV, LLC” and “Queen 4, LLC.” 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 LLC vs. Limited Liability Company. 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 required to start a LLC?
Only a minimum of one person is required to form and LLC. All of the member names and addresses are needed. You will also need a registered agent. If the person setting up the LLC resides in the state they are filing in, they can be the sole member (owner) of the LLC as well as be their own registered agent. Then the articles of organization are then submitted to the Secretary of State.
LLC classification
By forming Articles of Organization in the state of Utah, this creates the legal entity which is separate from you personally. When the LLC is completed at the state there are a few different ways the IRS will classify the entity for tax purposes. If the LLC is a single-member LLC the LLC is classified as a sole- proprietorship (thought it’s disregarded as separate from its owner), if the LLC has more than one member, it’s treated as a partnership, though an election can be made for the LLC to be taxed similarly to a corporation. You may elect your classification by filing Form 8832 at the IRS.
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