If you plan to create an LLC or limited liability company in the state of Utah, you’ll want to create an operating agreement. This document clearly outlines the liabilities, limitations, and business processes required for that entity. It helps create a straightforward course of action and intent and allows each member to have a guide to engaging in any activities while representing that LLC.
You can get an operating agreement template to make the process easier and hassle-free. Before you begin the process of registering your LLC with the state of Utah, be sure to find out more about the laws governing LLCs and LLC operating agreements in Utah below.
Is an LLC Operating Agreement Required in Utah?
An LLC operating agreement is not required in Utah. However, it is highly recommended that anyone who wants to create an LLC have one in place. This document concisely outlines the intentions, governing language, and processes for that LLC to engage in any activities. It’s a good idea for a single-member LLC but even more crucial to have if there are multiple members of the LLC to keep everyone informed. It prevents confusion and clearly states expectations and governing laws that apply to any situation. An operating agreement is easy to obtain and helps provide clarity for any case.
Utah Operating Agreement Laws
The Utah Code Titel 48, Chapter 3a, Part 1, Section 112 outlines the operating agreement laws for the state of Utah. This includes details such as:
- The relations between the LLC members and the relationship between other members
- This outline includes duties, rights, and power limitations for each person in a given circumstance
- Amendments to the operating agreement
- The limitations of the operating agreement
- Limiting or eliminating loyalty and duty of care
- The liability of any member of the LLC
- Restricting the duties of any member
- Limiting the rights of members
- Limiting terms unless outlined by specified rules
To obtain more in-depth details, refer to the official page online with the articles posted for public reference. Keep in mind that these laws only apply to the state of Utah and vary from state to state.
How Much Does it Cost to Form an LLC in Utah?
The cost to file an LLC online in Utah is $70. There is also an additional annual reporting cost of $20. The cost to submit and reserve a name online is $22. The cost of creating an LLC varies from state to state, so be sure to inquire about all the specific fees and forms needed to complete the process either online or by mail.
How to Form an LLC in Utah?
Whether you plan to create a single-member LLC or a multiple-member LLC, these are the steps you need to take to form an LLC in Utah. These are state-specific guidelines for Utah only and this information varies from state to state. To get more information or details, you can refer to the regulations and laws of the state.
Step 1 – You need to determine which type of LLC you’re creating. There are two types of LLCs to consider. The single-member LLC or SMLLC, and the multiple-member LLC or MMLLC. This is crucial to governing the entity and responsibility to the managing members.
Step 2 – You must create a name for the LLC and register it on the appropriate site. Usually, the name is short and straightforward and may reflect the members of the LLC or relate to the line of business they perform. It can generally be anything appropriate of your choosing.
Make sure you follow the state naming requirements: It must contain the words ‘Limited Liability Company’ or ‘Limited Company’, or the abbreviations ‘LLC’, ‘L.L.C.’, ‘LC’, or ‘L.C’.
Step 3 – Select your registered agent in the state of Utah. They must be certified and be a resident of the state. You can find someone by searching online or inquiring about the appropriate government entity that handles the LLC registrations in the state of Utah.
Step 4 – The next step is to file the Certificate of Organization. Make sure you file the proper documents and that they are received.
Step 5 – Once you have filled out the documents and paperwork to file your LLC, you should create an operating agreement. This is essential for any type of LLC but most important for an LLC with multiple members. This agreement is used to govern the LLC and outline the regulations and legislation that are related to the LLC in question. The operating agreement isn’t required, but it is intelligent practice for anyone who decides to undertake any business endeavor or otherwise while using their LLC.
Step 6 – The final step to creating an LLC is getting your EIN. This EIN is a unique number identifying your LLC and can be assigned online for convenience. You’ll need your EIN to conduct any official business, pay taxes, register with the state, and do anything related to your business. Make sure you keep your EIN on hand at all times because it is essential for many business processes.
Utah LLC Operating Agreement Template
Use the Utah LLC operating agreement template below:
LLC Operating Agreeement