How Much Does It Cost to Form an UT Corporation?
Legal business registration — and maintaining a status of good standing — involves necessary expenses and investment. Some of these costs are payable to the UT Department of Commerce, DCCC while others are due to additional state entities or the federal government. Here are some common requirements and fees.
Please note that fees for a State of Utah business license or permit may be due when you first form your business, on an ongoing schedule or on an ad hoc basis. Find more details below.
Initial Utah Corporation Filing Fees
When starting a business in Utah State, you’ll need to file a form and pay a filing fee. Here are the current Utah corporation filing fees and times:
When you use Incfile to register a business in Utah, we charge you the state filing fee and forward it to the Department of Commerce, DCCC when we file your incorporation paperwork.
Just pay the required Utah corporation filing fees.
Employer Identification Number
Every corporation in the country should have a unique EIN (Employer Identification Number) from the Internal Revenue Service. You'll use it when you open a business bank account, file taxes and pay employees. You can get one directly from the IRS, or Incfile can get one for you.
If you want to do business in a state other than the one where your business is based, you must create a Foreign Corporation.
Utah Foreign Corporation Registration
Before you can bring an arm of your business from another state into Utah, you must request Utah Foreign Qualification. This means the state gives you permission to conduct business there.
To request registration of a Utah Foreign Corporation, you must complete an Application for Authority to Conduct Affairs and pay a processing fee of $54. The state may have additional registration requirements, so contact the Utah State Department of Commerce, Division of Corporations and Commercial Code (DCCC) directly for more information and to ensure you're in compliance with UT corporation law.
Foreign Qualification to Operate in Another State
If you plan to expand your Utah corporation into another state, you’ll first need Foreign Qualification or a Certificate of Authority from that state. This is necessary before you can create a physical presence, hire employees or bank in that state.
You'll likely have to complete at least one application and pay a filing fee, but each state has its own requirements. Before you start the process, compare state filing times and state filing fees so you can plan accordingly.
Above all, contact the state government entity that administers business (usually the Secretary of State) to confirm their requirements and for specific instructions.
If you need assistance, Incfile provides a complete Foreign Qualification service for all states.
Utah Annual Report Requirements
Most states require business entities to file an annual (or other periodic) report. Utah requires an annual renewal to be filed once a year with the UT Department of Commerce, DCCC.
When you complete your annual renewal you may file it online accompanied with a filing fee of $20.
Due by the last day of the anniversary month of the filing.
State of Utah Business License and Permit Requirements
Before you start doing business, you must secure the necessary state, federal or local business licenses and permits to operate your corporation. Some of the fees will only need to be paid once, while others may be ongoing charges.
Permits and licenses vary based on:
Although corporations in Utah aren't legally required to keep bylaws it is still highly recommended. You won't need to file them with the Utah Department of Commerce, but simply keep them with your documents and by all means, continue to follow them.
This document outlines rules for carrying out tasks related to managing your corporation including, but not limited to:
- The number of directors the corporation has.
- How they'll be elected, their qualifications and the lengths of their terms.
- When, where and how your board of directors can call and conduct meetings.
- Voting requirements.
The bylaws may then be adopted (and amended, if necessary) by the board of directors and shareholders.
Drafting a set of bylaws can be extremely helpful in making sure you’re organized and can help protect your business from any future changes and events that may affect your business.
Other UT Corporation Filing Requirements and Fees
The State of Utah requires you to complete a few more tasks before you can begin conducting business.
Appoint a Director
Some states require corporations to appoint a full board of directors. UT corporation law requires all corporations to have at least three directors.
In Utah, the board of directors may elect officers such as the president, vice president, secretary, treasurer, etc. However at least one officer must hold the responsibility of the preparation and maintenance of minutes of the directors' and shareholders' meetings and other records and information required to be kept by the corporation.
Issue Stock to Shareholders
To raise business capital and keep it separate from company owners' money, every Utah corporation must sell stock to its shareholders. The Articles of Incorporation must authorize the sale of at least one class of share, and the corporation cannot sell more shares than are authorized.
Hold Annual General Meetings
Corporations in Utah are required to hold annual meetings, however if they fail to do so, Utah Code Title 16, Chapter 10a, Part 7, § 701 states, "The failure to hold an annual meeting at the time stated in or fixed in accordance with a corporation's bylaws does not affect the validity of any corporate action or work a forfeiture or dissolution of the corporation."
Get a DBA
If you want to register a Utah DBA, you must file a form with the Department of Commerce, DCCC and pay a filing fee of $22.
Change the Registered Agent
If your corporation is based in Utah, then you must have a Registered Agent in the state. You'll need to appoint one when you file your Articles of Incorporation. You can also change to a new Registered Agent later by filing a form and paying a fee of $52.
It’s free for the first year if you form your UT corporation with us and $119 a year after.
Reserving a Name for Your Corporation
If you're not quite ready to start your business, you can reserve a name for 120 days with the Department of Commerce, DCCC by filing a form and paying a fee of $22. First, conduct a UT corporation search and learn the state's business naming rules to ensure you choose a name that meets legal requirements.
Amending Facts About Your Corporation
When you incorporate, the Utah business forms you fill out include certain facts about your business at that time. Through the years, some or all of this information may change. If it does, you'll need to file Articles of Amendment with the Department of Commerce, DCCC along with a filing fee of $37. You can do this yourself or Incfile can do it for you.
You'll need to file Articles of Amendment when you:
- Change the company's name
- Add, remove or change a director
- Change the Registered Agent
- Change the number of shares your corporation is authorized to issue
- Change any other facet of your business that was listed on the original Articles of Incorporation.
Get a Certificate of Good Standing
Some organizations may request that you prove your corporation's compliance with laws and tax requirements. In most states, this proof is provided with a Certificate of Good Standing. In this state, it's a UT Certificate of Existence.
If you need to prove you have met your commitments, you’ll need to request a UT Certificate of Existence from the Department of Commerce, DCCC. You can do this by submitting a form to the UT Department of Commerce, DCCC and paying a filing fee of $12.
The information listed above details many of the fees a standard corporation will be required to pay in Utah. In some circumstances, there may be other one-off, periodic or ad hoc fees not listed above.
Of course, your corporation will also probably need to pay federal, state, self-employment (if it's an S Corp) and other taxes. You'll find more information on the Utah taxes page.
FAQs About UT Corporation Filing Requirements and Fees
We charge you this fee at cost and then pay it to the UT Department of Commerce on your behalf when forming your business.
It depends on various factors, including:
- Governing organizations in your industry
- Federal, state and local regulations
- Where you're located
- The type of business you run
Many new businesses need a business license, and you may be required to obtain additional licenses and permits. Our Business License Research Package can take the guesswork out of it for you and help you learn what your corporation needs to be compliant.