By Jake Lawson, LLC Formation Strategist
Utah gets it right when it comes to LLC formation costs. After helping 75+ entrepreneurs form Utah LLCs, I can tell you this state strikes the perfect balance: reasonable upfront costs, minimal ongoing fees, and none of the bureaucratic nonsense you’ll find in other states.
The headline: Utah raised their filing fee from $54 to $59 in July 2024, but they’re still one of the most affordable states for LLC formation.
The reality: You’ll spend $77-$350 your first year depending on whether you go DIY or full-service.
Let me break down every cost so you can plan accordingly.
Utah LLC Costs: The Real Numbers
Bare minimum: $59 (just the state filing fee)
Realistic first-year cost: $200-$350 (including essentials)
Premium setup: $400-$600 (full-service with professional help)
Here’s every cost you might encounter:
| What You Need | Cost Range | Jake’s Take |
| Certificate of Organization | $59 | Recent increase from $54, but still very reasonable |
| Registered Agent | $0-$150/year | Free if you do it yourself, $125-$150 for pros |
| Operating Agreement | $0 | Quality free templates available |
| EIN (Tax ID) | $0 | Always free through IRS (ignore paid services) |
| Annual Report | $18/year | Super affordable compared to other states |
| DBA (if needed) | $18 | Optional—only if operating under different name |
| Business Licenses | $0-$500+ | Depends on your industry |
The Utah Filing Fee: $59 and Worth Every Penny
Utah charges $59 to file your Certificate of Organization with the Division of Corporations. This creates your LLC legally and gets you:
- Fast online processing (usually 1-3 business days)
- Professional customer service if you have questions
- Clean, straightforward requirements
No expedited options: Utah processes regular filings quickly enough that they don’t offer expedited service. This actually saves you money since other states charge $50-100 extra for fast processing.
Filing method: Online through Utah’s business portal (much easier than paper filing)
The Registered Agent Decision: Privacy vs. Savings
Every Utah LLC needs a registered agent—someone with a Utah address who can accept legal documents during business hours.
Option 1: Be Your Own Agent (Free)
- Save $125-$150/year
- Your name and address become public record
- Must be available during business hours
- Need a Utah street address (no P.O. boxes)
Option 2: Professional Service ($125-$150/year)
- Privacy protection (keeps your address private)
- Professional document handling
- Mail forwarding and scanning
- Compliance reminders and support
When I recommend professional service:
- You don’t live in Utah but want to form there
- You value privacy and don’t want your home address public
- You travel frequently or have irregular schedules
- You want professional handling of legal documents
My recommendation: Northwest Registered Agent at $125/year. They’re reliable, don’t oversell, and actually answer their phones.
Operating Agreement: Essential and Free
Utah doesn’t legally require an Operating Agreement, but you absolutely should have one for:
Bank requirements: Most banks want to see an Operating Agreement when opening business accounts
Legal protection: Shows you’re running a legitimate business, not a personal fund
Ownership clarity: Critical for multi-member LLCs
Management structure: Defines how decisions get made
Cost options:
- Free templates: Available online (including quality ones)
- Basic attorney review: $300-$600
- Custom complex agreements: $800-$2,000+
For most single-member LLCs, a solid free template works perfectly. Multi-member LLCs should invest in at least a basic attorney consultation.
The EIN Number: Free vs. Scammer Services
Your Employer Identification Number (EIN) is required for:
- Opening business bank accounts
- Filing tax returns
- Hiring employees
- Most business transactions
The right way: Apply directly at IRS.gov (free, takes 10 minutes)
The expensive way: Pay $50-$300 to middleman services
I see entrepreneurs waste $150-300 on EIN services weekly. The IRS provides this for free. Don’t pay scammers.
Utah’s Sweet Spot: $18 Annual Reports
This is where Utah really shines. The annual report fee is just $18—compare that to:
- California: $800/year
- New York: $200/year
- Delaware: $300/year
- Illinois: $750/year
What you get for $18:
- Keep your LLC in good standing
- Update basic company information
- Maintain legal protection
- Continue business operations
Due date: Anniversary of your formation date
Late penalty: Additional fees if you miss the deadline
Filing method: Online through Utah’s portal
DBA: The Optional $18 Fee
A DBA (Doing Business As) lets your LLC operate under a different name than your legal name.
When you need a DBA:
- Operating under a trade name
- Using a shortened version of your LLC name
- Marketing under a different brand
When you don’t need a DBA:
- Using your legal LLC name for everything
- Just starting out and testing business ideas
Cost: $18 to file with Utah Division of Corporations
My advice: Start without a DBA and add one later if needed.
Business Licenses: The Variable Cost
Utah doesn’t require a general business license, but depending on your business:
State-level requirements:
- Professional licenses (contractors, real estate, healthcare)
- Industry-specific permits (food service, childcare)
- Sales tax license (if selling products)
Local requirements:
- City business permits
- County licenses
- Zoning approvals
Cost range: $25-$500+ depending on industry and location
Research tool: Utah’s business.utah.gov website has a decent license lookup tool.
Real-World Cost Scenarios
Scenario 1: Freelance Designer (Minimal)
- Certificate of Organization: $59
- Registered agent (self): $0
- Operating Agreement (template): $0
- EIN: $0
- Annual report: $18
- First-year total: $77
Scenario 2: E-commerce Business (Typical)
- Certificate of Organization: $59
- Professional registered agent: $125
- Operating Agreement (template): $0
- EIN: $0
- Sales tax license: $0
- Annual report: $18
- First-year total: $202
Scenario 3: Professional Services (Higher)
- Certificate of Organization: $59
- Professional registered agent: $125
- Attorney-drafted Operating Agreement: $500
- Professional license: $200
- EIN: $0
- Annual report: $18
- First-year total: $902
Tax Considerations: What Utah LLCs Pay
Utah LLCs are pass-through entities for tax purposes:
- LLC doesn’t pay corporate income tax
- Profits/losses pass through to owners’ personal returns
- Utah personal income tax rate: 4.85% (flat rate)
Additional potential taxes:
- Sales tax (if selling products)
- Self-employment tax (if active in business)
- Payroll taxes (if you have employees)
Accountant costs: $300-$900/year depending on complexity.
Formation Service vs. DIY: Cost Analysis
DIY Route (Minimum $59):
- File Certificate yourself online
- Be your own registered agent
- Use free Operating Agreement template
- Get EIN directly from IRS
Total first-year cost: $77 (including annual report)
Professional Service Route ($200-$400):
- Service handles filing and paperwork
- Registered agent included (often first year free)
- Operating Agreement provided
- EIN obtained for you
My recommendation: Utah makes DIY easy with their online system. Unless you have a complex multi-member LLC or need hand-holding, save the money and file yourself.
Trusted services if you prefer help:
- Northwest Registered Agent: $39 + state fee, excellent value
- ZenBusiness: Good middle-ground option
- LegalZoom: More expensive but comprehensive
Utah vs. Other Business-Friendly States
Utah advantages:
- Low annual fees ($18 vs. $300+ in many states)
- Reasonable filing fees ($59 vs. $300+ elsewhere)
- Fast, reliable online processing
- Helpful customer service
- Business-friendly regulations
Utah considerations:
- 4.85% flat income tax (higher than some states)
- Sales tax complexity if selling products
- Professional licensing requirements for some industries
Money-Saving Strategies
Immediate savings:
- File your Certificate online yourself ($59 vs. $200+ with services)
- Start as your own registered agent, upgrade later if needed
- Use a quality free Operating Agreement template
- Get your EIN directly from the IRS
- Research licensing requirements thoroughly before paying
Long-term optimization:
- Set annual report reminders (avoid late fees)
- Keep good records (reduce accounting costs)
- Choose reliable registered agent if you switch (avoid hassle of changing)
Timeline and Planning
Formation process:
- Week 1: File Certificate of Organization online
- Week 1: Receive approval (usually 1-3 business days)
- Week 2: Get EIN from IRS
- Week 2-3: Open business bank account
- Month 1: Apply for any required business licenses
Total setup time: 2-4 weeks for complete setup
Common Utah LLC Mistakes
Mistake #1: Paying for unnecessary services Utah’s system is user-friendly. Don’t overpay for basic filings.
Mistake #2: Forgetting annual reports $18 is cheap, but late fees add up. Set calendar reminders.
Mistake #3: Assuming you need expensive licenses Research your specific industry. Many service businesses need minimal licensing.
Mistake #4: Paying for EIN services The IRS provides EINs free. Don’t fall for $200+ scammer services.
Why Utah Gets It Right
After dealing with LLC formation in all 50 states, Utah stands out because:
Reasonable costs: No gouging on filing fees or annual requirements
Modern systems: Online filing that actually works
Clear requirements: No hidden gotchas or confusing rules
Business-friendly: They want businesses to succeed, not just collect fees
The bottom line: Utah makes LLC formation affordable and straightforward without sacrificing legal protection or business flexibility.
Final Thoughts: Planning Your Utah LLC
Budget $200-$350 for your first year if you want professional registered agent service, or as little as $77 if you go full DIY. Either way, you’re getting excellent value.
Key takeaways:
- $59 filing fee is reasonable and includes fast processing
- $18 annual reports are among the cheapest in the country
- Professional registered agent service is worth $125/year for most businesses
- Utah’s online systems actually work (unlike some states)
Questions about Utah LLC costs? Call the Utah Division of Corporations at (801) 530-4849. They’re helpful and actually answer their phones.
Ready to get started? Utah makes it easy. File online, get approved quickly, and start building your business with solid legal protection at a fair price.
Jake Lawson has guided over 1,200 entrepreneurs through LLC formation across all 50 states. His practical approach helps founders get the legal protection they need without overpaying for unnecessary services. Connect with Jake at llciyo.com for more business formation insights.