Are you planning to start a business in Utah? It pays to do your homework! Before you can register your business in the Beehive State, you need to decide what type of business structure you will utilize. Will you go for Doing Business As (DBA), Limited Liability Company (LLC), or corporation? If you decide to have a Limited Liability Company, you need to know the current Utah LLC cost. If you opt for DBA or corporation, then you should also assess how much capital they require these days. Whichever you choose, all these structures have their fair share of advantages and flaws. To help you pick the perfect choice, we did a little research about these three entities.
Basic Business Structures
- Doing Business As
DBA is sometimes referred to as a trade name, fictitious business name, or assumed business name. It allows a business to operate under a different name from its legal name. For example, if you want to run your cleaning business as X.Y.Z. Cleaning, you will need to file for a DBA. In most states, business owners file DBAs at the county level, where you can find the business.
- Limited Liability Company
An LLC means that your business operates as a distinct and separate legal entity from you (as the owner). While LLCs require more formalities than a DBA, they have fewer restrictions than corporations. A manager or members who must manage a Member-Managed LLC are the company owners, while a manager may or may not be a member. The LLC structure also includes more tax flexibility since it can choose to be taxed as a corporation, partnership, or sole proprietor.
A corporation is a separate entity that provides liability protection to the owners and has a structure that includes shareholders, directors, and officers. It is more complicated than a DBA, but startups and large firms that intend to raise funding often choose this.
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Now that you know the three structures’ main differences (and we hope that you’ve decided which one is your best bet), it’s time to think of a name for your business. Depending on the structure you chose, there will be different requirements when naming a business.
What to Consider When Naming an LLC
Surprisingly, there are lots of things to consider when naming an LLC. But for brevity purposes, we’ve narrowed them down and listed only the most crucial things to keep in mind.
- Include any of these words, phrases, or abbreviations: “limited company,” “limited liability company,” “LC,” or LLC” to your business name.
- Do not use words that could confuse your LLC with a government agency, like “FBI,” “Treasury,” and “State Department.”
- Avoid the words “bank,” “trust,” “trustee,” “insurer,” or “insurance company.”
- Do a name search on the Utah.gov website to make sure the name you want is still available.
Registering an LLC in Utah
Now comes the easy-peasy part: registering your business as an LLC. First, file the “Certificate of Organization” amounting to $70 with the Utah Division of Corporations and Commercial Code. When approved, you need to organize the LLC by holding an “Organizational Meeting” and crafting the company Operating Agreement, taking contributions from the members, issuing Member Certificates, and more.
We hope this simple guide will give you an idea of Utah LLC cost and help you start your own business. Registering a business in the State of Utah takes time, patience, and a fistful of dollars. While you need to take a lot of steps, they are pretty easy and simple. Just make sure to take one step at a time and do everything you need to. This way, you’ll be able to set up your business correctly and get started making money.