The series LLC is a relatively new business structure, but it has already become extremely popular in the country due to the many advantages it offers. Need advice on how to get a series LLC in Utah in no time and without stress? If so, our guide has you covered.
In this article, we’ll not only give clear instructions on how to form an SLLC in Utah but also prompt you on the next steps after the SLLC registration, so you can get your business up and running with little to no effort on your part.
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Overall, the process of forming a series LLC in Utah isn’t all that complicated. However, because it involves more steps than one, you may want to follow some kind of a guide to make sure you’ve done everything correctly.
That’s where our step-by-step guidelines come in handy. Below, we go through each step, from giving your company a name to the paperwork that needs to be done straight after the SLLC formation, so you have a detailed plan to stick to. Read on for more!
First off, you should pick a name for your company. Make sure that you choose a name that evokes something about your branding and is easy to remember so your customers can easily find you when they need to. Besides, consider the following naming rules:
It’s also worth noting that you have the option of getting a DBA name (also known as a trade name) in Utah. You don’t have to do this right away, but if at some point you decide you’d rather use a different name than the legal one, this option is available.
A DBA name can be obtained by filing with the Utah Division of Corporations online or by mail and paying a fee of $22.
Once the company’s name is chosen, it is time to find a registered agent. Simply put, a registered agent is a point of contact between your SLLC and the government, appointed to accept and deal with your business correspondence.
According to state law, anyone with a proven street address in the state of Utah who’s at least 18 years old can act as a resident agent if they can be present during work hours at that address. This gives you quite a wide range of options for who you can hire:
As you can see, even you can be your own statutory agent if handling business correspondence doesn’t seem overwhelming to you. In general, however, most SLLCs are far better off hiring a professional RA who can take this hassle out of the way.
What’s more, hiring a resident agent provider offers a bundle of other remarkable advantages, including:
The next step in settling up a series limited liability company in UT is filing the Certificate of Organization.
This is a legal document that is submitted to the Utah Department of Commerce, Division of Corporations and Commercial Code to officially establish the fact of an SLLC registration.
Preparing this document isn’t hard, however, if you need a hand, you can always reach out to a business сonsultant or lawyer who will make sure the information included is correct and filled the right way. In all, the Certificate of Organization must include the following details:
Please note that when creating an SLLC in UT, you will also need to state in the Certificate of Organization that your company will have one or more series of assets subject to limitations.
Other than that, the process is pretty much the same as forming a traditional LLC. Once the form is filed and a filing fee of $54 is paid, you’ll need to wait for around 3-7 business days to get a certified copy back. If you pay an extra $75, you can get it done within 2 days.
Compared to the Certificate of Organization, an operating agreement isn’t a required document, but having it can be quite beneficial for pretty much any business entity, regardless of its structure. The advantages of an operating agreement are numerous:
Whether you’re planning to hire employees or not, you’ll most likely need a federal taxation number (known as EIN). The EIN is a nine-digit number appointed to small businesses for reporting and tax purposes and is also needed for:
By and large, the cost to open an SLLC in Utah may vary largely, depending on the nature of your business, location, and the services you use. That said, most of them fall into the following groups:
To make it a tad bit easier for you to understand how much a series LLC in Utah costs so you can plan ahead for your expenses, we’ve broken down all the expenses involved in creating an SLLC into a detailed chart below.
|Certificate of Organization fee||$54|
|Registered agent fee||$0-$300 per year|
|Annual report fee||$20|
|Name reservation fee (optional)||$22|
|Certified copies of documents fee||$12 + $.30 per page|
|Certificate of Good Standing fee (optional)||$12|
|DBA name fee (optional)||$22|
|Articles of Amendment fee (optional)||$37|
|Articles of Dissolution fee (optional)||$0|
|Other permits and licenses||Varies depending on the business activity|
In general, a Certificate of Good Standing isn’t a mandatory document, but there may be a time when you need to obtain it.
More often than not, it’s required by bank officials as proof that your business is registered under the state and has been kept in good standing. It can also be needed when adding a new branch of a series to the parent LLC, for example.
To request a Certificate of Good Standing, you can go to the website of the Utah Secretary of State and file an application online or by mail for a filing fee of $12.
Now that the paperwork is done and dusted, and you’re ready to finally get down to work, it’s worth taking some time and going through a few more things that can help make your business a success. Let’s jump in.
Forming an SLLC is fairly easy, while managing finances is not. Therefore, the best thing to do is hire a professional accountant who will be responsible for the accuracy of the information in the reports and the distribution of the company’s funds.
What’s more, an accountant can act as a business advisor, providing data-driven insights into a company’s performance, which will allow you to focus on the services that generate the most profit and eliminate those that don’t deliver the desired outcomes.
If you have difficulty understanding taxes, an accountant can provide help with this, too. More to that, they can lend you a helping hand with preparing regular reports so you have no hassle of handling business paperwork.
While you can skip the step with an accountant, you can’t skip the step of opening a business bank account. In fact, this is the most important step in creating a business as it draws the line between your personal and business assets and ensures liability protection.
Furthermore, it’s necessary to have a dedicated business bank account for each cell LLC in the series. This is the only way to protect the finances of one business activity from another and ensure that the series will remain intact if one of the child LLCs is sued.
Opening a business bank account is quick and easy. All you need is to provide:
Workers’ compensation insurance is a must for any business entity that hires employees. Essentially, this insurance serves as a wage replacement that your employees may need in case of an accident at work or illness.
Aside from that, you may want to get general liability insurance. As you can easily guess from the name, this insurance protects the business from any general claims that may be placed on your SLLC once you start operating it.
If you use or plan to use a vehicle for business purposes, you’ll need to get car insurance, too. Additionally, if you use any particular trademark, it may be a good idea to protect it by acquiring indemnity insurance.
Keeping your company compliant is essential not to face penalties and prevent the company from being involuntarily dissolved, which may happen if you fail to submit your annual reports before the due date. In UT, it’s the date on which an SLLC was formed.
You can file annual reports online by completing a downloadable form or send them by mail or fax. In addition, you only need to file reports for the master LLC, which takes some of the paperwork out of the equation.
Aside from that, you will also need to file income tax returns at the intervals that will be specified after you register your SLLC in Utah. Note that these reports must be submitted whether you’ve made any profit from your business or not.