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Business Structures in Utah: Limited Liability Companies

by Norris Law Group on October 17, 2014

Business Structures in Utah: Limited Liability CompaniesThroughout this week, we have examined several types of business structures available to Utah business owners, including sole proprietorships, general partnerships, and limited partnerships. Today, we will discuss Utah Limited Liability Companies (LLC’s), which are a different than limited partnerships.

A Utah LLC offers business owners some of the advantages of the less-stringent rules of a partnership while, at the same time, affording a business some of the tax advantages and protections of a corporation. Like a limited partnership, an LLC gives partners limited liability in the event of any loss or legal action. In addition, partners in an LLC can also take advantage of the more favorable tax status given to partners in limited or general partnerships.

LLC’s, however, must file Articles of Organization with the Utah Division of Corporation at inception. In Utah Limited Liability Companies, the partners may choose to manage the company themselves or to appoint one or more managers. Limited partners may take part in managing the business without assuming any more liability than their limited status allows. Utah LLC’s must meet registration and annual reporting requirements, much like corporations and limited partnerships.

Limited Liability Companies in Utah may be taxed as a sole proprietorship, a partnership, or even a sole proprietorship, depending upon how it is structured with the state. An attorney experienced in setting up Utah Limited Liability Companies can provide sound advice to business owners considering the LLC business structure. A conversation with a tax professional or financial advisor might be a wise move as well. Your Utah business law attorney may be able recommend local professionals in these areas.

Attorney Graham Norris and his associates at the Norris Law Group serve the residents of Utah County, UT and throughout Utah, Wyoming and Idaho. Contact them today at 801-932-1238 or online for a free consultation.

 

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