One of the salient aspects of incorporation in Utah is that the state is ranked #2 on the Forbes list of “Best States for Business”. It is also ranked #2 where availability of skilled labor is concerned and #4 in Regulatory Environment, which is good for businesses. If you are thinking of getting a head start into an IT business then Northern Utah also known as the “Silicon Slopes” is the place to be. This state is home to some of the biggest global brands including Adobe, Intel-Micron joint venture IM Flash Technologies, and EA Sports among others. Salt Lake City is another good business destination according to a report by Harvard and U.C. Berkeley reporters that has ranked it #1 in terms of “upward mobility” in the country.
Why Choose Utah for Incorporation?
Utah comprises of primarily a mixed economy that is driven by industries like mining, tourism, agriculture, information technology, manufacturing, petroleum production, and finance. The manufacturing and mining industries have existed for decades but tourism and information technology are the growing industries that have witnessed a large number of company incorporation in Utah in the recent past.
Now let’s take a look at some of the salient benefits that are responsible for fuelling growth of small businesses:
Sales Tax Exemption for Manufacturing Equipment: In the state of Utah, any type of equipment and machinery being used in the manufacturing process of a product to be sold as a tangible personal property will be exempted from sales tax. If you set up a company in Utah in the amusement industry then certain equipment and machinery to be used in the industry will also be exempted. The sales of raw materials and utilities & fuel are also exempted from sales tax in the state. In order to benefit from any of the exemptions, you need to submit Form TC-721. Download Form
Some of the other incentives for businesses that you can benefit from include Renewable Energy Development Incentive (REDI), Economic Development Tax Increment Finance Tax Credit (EDTIF), Research Activities Credits, and High Cost Infrastructure Tax Credit (HCITC) among others.
How do you incorporate in Utah?
What is the process through which you can set up company in Utah? What type of documentation is required? Can the registration documents be filed online? If you are confronted with these questions then the following steps will help you in understanding how incorporation works in Utah:
Type of Business
The first step towards incorporation in Utah is choosing the type of business you want to form. You can choose to form a Limited Liability Company, Profit Corporation, Benefit Corporation, Professional Corporation, Real Estate Investment Trust, Business Development Corporations, Business Trust Registration, and Limited Cooperative Association among others. The type of business entity you want to form can be either a domestic or a foreign entity. The forms and fee will be different for each type of entity.
Business Entity Name
The second most important step towards company incorporation in Utah is registering your business entity name. There are 3 steps towards business name formation and they are:
- Naming Requirements: A corporation under 2011 Utah Code §16-10a-401 and an LLC under Utah Code §48-3a-108 (2014) should contain words like “corporation”, “incorporated”, “limited liability company” or abbreviations like “corp.”, “inc.”, “ltd.”, “L.L.C.” or similar abbreviation.
- Business name search: You need to search for a business name that is not in use currently. You can conduct name search here.
- Name Reservation: Once you have identified business entity name, and if the name is available then you can reserve the name pursuant to 2011 Utah Code §16-10a-402 for business corporations and Utah Code §48-3a-109 (2014) for LLC’s. You can reserve the name with the State of Utah, Department of Commerce; Division of Corporations & Commercial Code for a non-renewable period of 120 days.
- A foreign business entity will have to register their business name pursuant to Utah Code § 48-3a-110 (2014) and 2011 Utah Code § 16-10a-402.
Choose a Registered Agent
Whether you form a corporation or an LLC business entity, in order to transact business in the state of Utah, you will have to maintain a registered agent pursuant to Utah Code § 48-3a-111 (2014) for LLC and 2006 Utah Code § 16-10a-501 for Business Corporations.
We are one of the respected registered agents in Utah and will be responsible towards initiating incorporation in Utah through processing of your “Certificate of Organization”, and “Articles of Incorporation” for domestic entities and “Foreign Registration Statement” and “Application for Authority” for foreign business entities.
Articles of Incorporation and Application for Authority
You will be required to file “Articles of Incorporation” pursuant to 2011 Utah Code §16-10a-202, if your business is a domestic corporation. You will have to file an “Application for Authority” to transact business in the state pursuant to the provisions of 2011 Utah Code §16-10a-1503. In order to streamline the process of incorporation in Utah, we can file documents on your behalf through the online process or through an expedited process.
Date Stamped Copies
As a part of the process of company incorporation in Utah, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your corporation.
Costs and Fees associated with Utah Incorporation
What would it cost to set up a company in Utah? Check Fees here!
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