LLC Annual Report and Tax Filing Requirements in Utah

A limited liability company (LLC) is a popular entity structure for small businesses. If you want to start and run an LLC in Utah, you'll need to prepare and file various documents with the state. This article covers the most important ongoing reporting and state tax filing requirements for Utah LLCs.

Utah LLC Annual Report and Renewal

The State of Utah requires you to file an annual report (also known as a "renewal") for your LLC every year. You must file your report with the Division of Corporations and Commercial Code, a division of the Department of Commerce (DOC).

The report is due on the last day of the LLC's anniversary month. For example, if you formed your Utah LLC on October 12, then your renewal would be due by October 31 each year. The DOC should send you a renewal notice approximately 60 days before the annual report is due.

You can file the report online or download a blank report/renewal form from the DOC website to complete and mail to the DOC. To complete the annual report, you primarily need to provide your LLC's name and state-issued entity number.

As of 2023, the filing fee is $18. If you file after the due date there's also a penalty fee.

State Business Taxes in Utah

For income taxes, most LLCs are considered "pass-through tax entities." With a pass-through entity, the responsibility for paying federal income taxes passes through the LLC itself and falls on the individual LLC members. By default, LLCs themselves don't pay income taxes. Instead, as an LLC owner, you'll report and pay taxes on your share of the LLC's income.

No franchise tax. Some states impose a franchise tax on LLCs. However, in Utah, you don't have to pay a franchise tax for your LLC.

Electing corporate tax status. While LLCs are taxed as partnerships by default, you can choose to have your LLC taxed as a corporation. Utah will tax your LLC as a corporation as long as you elect corporate tax status at the federal level by filing IRS Form 2553 with the IRS. Utah, like most states, has a corporate income tax, more specifically called the "corporation franchise and income tax." In general, this tax is calculated at a flat 5% of Utah taxable income with a minimum tax of $100. File the state corporate income tax return (Form TC-20) with the Utah State Tax Commission (USTC).

For more details, check the business tax section of the USTC website.

Utah Employer Taxes

Does your LLC have employees? If so, you'll need to pay employer taxes. Employers must pay taxes to the federal and state governments. You'll need to get an employer identification number (EIN) from the IRS if you don't already have one.

You can register for multiple types of taxes online with Utah's OneStop Business Registration (OSBR). The OSBR allows you to register your business with:

• the USTC
• the DOC, and
• the Utah Department of Workforce Services (DWS).

Use the OSBR to register for employer taxes and sales and use tax. (You can also apply for some city business licenses through the OSBR.)

Withholding employee wages. You'll need to withhold and pay employee personal income taxes to the USTC. Begin by registering your business with the USTC. Besides registering through the OSBR, you can also register either online using the Utah Taxpayer Access Point (TAP) or on paper with TC-69, Utah State Business and Tax Registration. Once registered, you'll need to file withholding taxes quarterly using Form TC-941E. An annual reconciliation will be included with your fourth-quarter withholding form.

Unemployment insurance (UI) tax. In addition, you'll probably need to register to pay state UI taxes to the DWS. You can register your business and obtain a UI account number through Utahid or the OSBR. Each quarter, you must file the Employer's Quarterly Wage List, Contribution Report and pay contributions (taxes) online to the DWS.

Utah Sales and Use Tax

If your LLC will sell goods to customers in Utah, your business must collect and pay sales tax. You must register to pay sales tax with the USTC and make periodic sales tax payments for goods and services sold.

After you've registered to collect and report sales tax in Utah, you'll be issued a sales tax number and sales tax license. You must file your returns and make your payments on either a yearly, quarterly, or monthly basis depending on your annual tax liability. Use TAP to submit your returns payments.

Refer to the USTC's sales and use tax webpage for more details.

LLC Registration in Other States

If you plan to do business in states other than Utah, you might need to register your LLC in some or all of those states. Whether you're required to register will depend on the specific states involved: Each state has its own rules for what counts as doing business and when registration is necessary.

Many states require you to register or qualify as an out-of-state business if you have a physical presence in the state, hire employees in the state, or advertise directly to residents in the state. Registration usually involves obtaining a certificate of authority or a similar document.

To find out whether you need to register in another state, see our state guide to qualifying to do business outside your state.

More Information About Utah LLCs

If you need more information about other states' LLC requirements, read our article on LLC tax and filing requirements. You can also check out more articles related to creating, running, and dissolving your LLC in the LLC section of our website.

If you have any legal questions, reach out to a Utah business lawyer. An attorney can help you figure out your filing requirements and tax responsibilities. They can also help you register with the state and meet various filing deadlines.