0

Incorporating in Utah: What is a Business Corporation?

by Norris Law Group on October 20, 2014

Post image for Incorporating in Utah: What is a Business Corporation?

Incorporating in Utah: What is a Business Corporation?Have you been considering setting up a business as a corporation in Utah? From a legal standpoint, it’s a relatively simple process, but it must be done with care. The Utah Governor’s Office of Economic Development explains the options for incorporating in Utah in a free online guide titled How to Do Business in Utah.

One option for Utah business owners is a business corporation (as explained beginning on p. 4-1) of the guide. Corporations have a very different structure than other types of businesses, such as sole proprietorships or partnerships. According to the Utah’s Governor’s Office of Economic Development, a “corporation is a more complex form of business organization. A corporation is a legal entity and exists apart from its owners or shareholders.”

The following are all aspects of any Utah corporation:

  1. Articles of Incorporation must be filed with the Utah Division of Corporation and Commercial Code.
  2. The corporation must be designated as for profit or not for profit.
  3. Utah corporations have limited liability in case of loss.
  4. Owners and shareholders are only liable for the amount of their capital investment in the corporation.
  5. Transfer of shares or even death of any owner does not affect the corporation’s legal status.
  6. Federal and state taxes must be paid on any profits. Shareholders pay taxes on any dividends.

It is possible to set up a Utah business corporation on your own. But you may want to keep in mind that the process is a little involved, and that corporations must keep extensive records. This is just one reason why a conversation with an attorney experienced in setting up Utah business corporations might help set you and your business on the right path.

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.

 

{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: