LLC Formation in Utah, Arizona & Texas

Forming an LLC is one of the most important steps you can take as a business owner. It creates a legal separation between you and your business, which means if something goes wrong, your personal assets, your house, your savings, your retirement accounts, are protected from business debts and lawsuits.

At Jon Miller Law, we form LLCs in Utah, Arizona, and Texas. Our service goes beyond just filing paperwork with the state. We draft a custom operating agreement, obtain your EIN, and make sure your entity is set up properly from day one. Because we also practice estate planning, we can integrate your LLC with your trust so your business ownership transfers seamlessly to your family if something happens to you.

Our LLC formation packages start at $950 and include everything you need to get started. Flat-fee pricing, no hidden costs, and a real attorney who answers your questions.

Why Form an LLC

The main reason to form an LLC is liability protection. When you operate a business as a sole proprietor, there is no legal distinction between you and the business. If a customer sues your business, they can go after your personal bank accounts, your home, and everything else you own.

An LLC creates that legal wall. The business has its own debts, its own bank accounts, and its own liabilities. Your personal assets sit on the other side of that wall, protected from business claims.

Beyond liability protection, an LLC offers flexibility in how you're taxed. By default, a single-member LLC is taxed as a sole proprietorship and a multi-member LLC is taxed as a partnership. But you can elect to be taxed as an S-corporation if it makes sense for your situation, which can reduce self-employment taxes for profitable businesses.

An LLC also adds credibility. Clients, vendors, and banks take your business more seriously when it's a properly formed legal entity. And having an operating agreement shows that you run your business professionally, which matters if your liability protection is ever tested in court.

Utah LLC Formation Process

Forming an LLC in Utah involves several steps, and we handle all of them for you.

Name availability.We check that your desired business name is available with the Utah Division of Corporations. The name must be distinguishable from other registered entities in Utah and must include "LLC" or "Limited Liability Company."

Articles of organization.We prepare and file your articles of organization with the state. This is the document that officially creates your LLC. Utah's filing fee is currently $72 for online filings.

Operating agreement. We draft a custom operating agreement tailored to your business. This document governs how your LLC operates, addresses ownership and profit distribution, and protects your liability shield.

EIN registration. We obtain your federal Employer Identification Number from the IRS. You need this to open a business bank account, hire employees, and file taxes.

Utah does not require LLCs to publish a notice of formation or file an initial report. However, Utah LLCs must file an annual report with the Division of Corporations. The annual renewal fee is $18, and we remind our clients when it's due.

Arizona LLC Formation Process

Arizona has its own set of requirements for LLC formation, and we handle the entire process for clients forming entities there.

Name availability. We verify your business name is available with the Arizona Corporation Commission. Arizona has similar naming rules to Utah, requiring the name to be distinguishable from existing entities.

Articles of organization. We prepare and file your articles with the Arizona Corporation Commission. The filing fee in Arizona is currently $50.

Publication requirement. Arizona requires that new LLCs publish a notice of formation in a newspaper in the county where the LLC has its principal place of business. This notice must run for three consecutive publications. We coordinate this for you and make sure the affidavit of publication is filed with the Corporation Commission.

Operating agreement and EIN. Just like in Utah, we draft your custom operating agreement and obtain your EIN.

Arizona does not require annual reports for LLCs, which is one advantage of forming in Arizona. However, you should still maintain your operating agreement and keep your business records current.

Texas LLC Formation Process

Texas is another state where we handle LLC formations, and it has its own unique requirements.

Name availability.We check your business name against the Texas Secretary of State's records. Texas follows the same general naming rules as other states.

Certificate of formation. In Texas, the formation document is called a certificate of formation rather than articles of organization. We prepare and file it with the Texas Secretary of State. The filing fee is currently $300, which is higher than Utah or Arizona.

Operating agreement and EIN. We draft your operating agreement and obtain your federal EIN, just as we do in the other states.

Franchise tax. Texas has a franchise tax (also called a margin tax) that applies to most business entities. The good news is that businesses with total revenue under $2.47 million currently owe no franchise tax. But you still need to file the franchise tax report each year. We make sure you know about this obligation so you stay in compliance.

Texas does not require LLCs to publish a notice of formation. However, there is no annual report requirement like Utah has, though the franchise tax report effectively serves a similar function.

Operating Agreements: Why They Matter

Your operating agreement is the most important document your LLC has, and it's the one most people skip. Online formation services often don't include one, or they give you a generic template that doesn't fit your situation.

Here is why your operating agreement matters. Without one, your LLC is governed by your state's default rules. Those default rules may not align with how you actually want to run your business. For example, Utah's default rules say profits are split equally among members regardless of how much each person invested. If you put in 80% of the capital and your partner put in 20%, you'd still split profits 50/50 unless your operating agreement says otherwise.

An operating agreement also strengthens your liability protection. Courts look at whether you treated your LLC as a real, separate entity. Having a well-drafted operating agreement is one of the strongest indicators that you take your LLC seriously.

For multi-member LLCs, the operating agreement addresses what happens when members disagree, how new members can join, how existing members can leave, and what happens if a member dies or becomes incapacitated. These situations inevitably come up, and having a written framework prevents them from becoming legal battles.

Ongoing Compliance

Forming your LLC is step one. Keeping it in good standing is an ongoing responsibility. The requirements vary by state, but here are the basics you need to know.

Utah: File an annual report with the Division of Corporations (currently $18). Keep your registered agent information current. Maintain a separate bank account for your business.

Arizona: No annual report required for LLCs. Keep your registered agent information current with the Corporation Commission. Complete the publication requirement within 60 days of formation.

Texas: File your franchise tax report annually with the Texas Comptroller, even if you owe zero tax. Keep your registered agent information current with the Secretary of State.

Across all states, you should keep your operating agreement updated, maintain meeting minutes if applicable, keep business and personal finances separate, and maintain adequate business insurance. These practices protect your liability shield and show that your LLC is a legitimate, properly managed entity.

Frequently Asked Questions

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