Why Start a UT Corporation?
The Utah Governor’s Office of Economic Opportunity offers a range of business incentives, giving businesses in Utah a competitive edge. Your corporation may be able to take advantage of these incentives, provided it meets qualifying criteria.
For example, Utah's Economic Opportunity Tax Credit is a post-performance, refundable tax credit for up to 30% of new state revenues over the life of the project. The incentive is available to Utah companies and others seeking to relocate or expand operations to Utah.
For many entrepreneurs looking to start a larger business, UT incorporation may be the best choice. As a corporation, your business is able to buy and trade stock, and when it comes to excess profits, corporations offer more flexibility than a limited liability company (LLC). A corporation is allowed to pass income and losses to its shareholders, who report taxes on an individual tax return at ordinary levels.
Is an LLC Better Than a Corporation?
It all depends on your goals. For smaller businesses, limited liability companies are usually a better option. An LLC is easier to set up and receives many of the same benefits as corporations, but with less regulation.
Learn more about forming a Utah LLC so you can decide which business entity is right for you.
Benefits of Forming a Utah C Corporation
Benefits of Forming a Utah S Corporation
It offers several advantages similar to those provided by a C Corp including, but not limited to:
- Options for creating, transferring and selling stock, though not as many as a C Corp
- The capacity for up to 100 shareholders
- Simpler rules than those that apply to C Corporations
- Easy transfer of ownership simply by selling your stock
- The possibility of saving money by allowing you to pay less self-employment tax
In this guide, you’ll find information on naming your corporation, getting a Registered Agent, the fees you’ll need to pay, business taxes and much more. We also cover what you'll need to register your corporation and how you'll interact with the Department of Commerce, Division of Corporations and Commercial Code (DCCC) in Utah.
How to Form a UT Corporation Yourself in 6 Steps
Choose a Unique Business Name and Complete a State Business Search
Every Utah business must have a unique name that hasn't already been claimed by another business in the state. If you’re having difficulty coming up with a name, try using our Business Name Generator to gather ideas. You'll need to follow a few naming rules, which you can read about in detail on the Utah Corporation Names page.
Once you’ve chosen a name, you’ll need to make sure it’s available in Utah. To see whether another company in the state is using your desired business name, use our tool to do a Utah entity search.
You can also carry out a name search on the state's OneStop Business Portal.
Provide an Official Business Address for Your Corporation
All UT corporations must have a designated address. It could be your residential address (if you’re running the company from your home), a building where your office is located or any physical address of your choice. The address can be outside the state of Utah and can be a P.O. Box.
You may also be able to use a virtual mailbox for your business address. Incfile can provide you with a Utah virtual mailbox where we'll receive your mail, scan it and upload it for your online review. This can be especially helpful if you run a home-based business and don't want your home address published as part of your business public record.
Assign a Registered Agent
Someone who receives official correspondence and is responsible for filing reports with the Utah Department of Commerce, Division of Corporations and Commercial Code (DCCC) is known as a Registered Agent. Every Utah corporation is required to have a Registered Agent.
You can fill this position yourself, assign another manager in your business or use a Registered Agent service. If your Registered Agent in Utah is a person, they must have a physical street address in Utah and must be available during business hours to receive important documents on behalf of your company. You'll appoint your Registered Agent when you file your Articles of Incorporation with the Department of Commerce, DCCC and formally create your corporation.
All of Incfile’s business formation packages include Registered Agent service. It’s free for the first year and just $119 per year after that. You can also access a digital dashboard to view any document we've received on your behalf.
File Your Articles of Incorporation with the Utah Department of Commerce, Division of Corporations and Commercial Code (DCCC)
Once you've gathered all the information for your corporation, you’ll need to file your Articles of Incorporation with the Department of Commerce, DCCC. This will officially create your business.
Here’s what is typically included:
- Your business name
- Your corporation's purpose
- The corporation’s capital structure (number of shares to be issued)
- Registered Agent's name and address
- Name, signature and address of the incorporator
- Principal address of the corporation
- Name and address of each officer and director of the corporation
File by Mail
PO Box 146705
Salt Lake City Utah 84114-6705
You only need to file your Articles of Incorporation in Utah once, but once a year thereafter, you'll also need to complete an annual renewal with the Department of Commerce, DCCC in UT. Incfile can remind you about this every year, or we can do it for you if you have us handle the paperwork.
What are the fees and requirements to incorporate in Utah?
Due by the last day of the anniversary month of the filing.
Get an Employer Identification Number (EIN) from the Internal Revenue Service
You'll need an EIN to identify your business to the IRS. You use this number for filing and paying taxes, submitting payroll information and payments for your employees and opening a business bank account. You can obtain one directly from the IRS, or Incfile can get one for you as part of the UT corporation creation process.
A set of rules that govern how a corporation will be run, bylaws detail how many directors the corporation will have, whether the board of directors will have annual meetings and what the voting requirements will be, among other things.
Some states legally require companies to create bylaws, however the state of Utah is not one of them. Regardless, it's always a good idea to write and follow bylaws to protect your business from any future changes and events.
Types of UT Corporations
Title 16, Chapter 11, § 16-11-2 also specifies a few of the professions permitted to form a Professional Corporation in Utah, which include, but may not be limited to:
- Physicians, Surgeons, or Doctors of Medicine
- Physician Assistants
- Public Accountants
- Professional Engineers
- Physical Therapists
Check with the Department of Commerce, DCCC to confirm whether your business should and can be a Professional Corporation.