What does it cost to run an entity in Utah.
Running a company in Utah means filing the state's tax returns and any annual report on time, keeping its registered address current, and running payroll for everyone you employ. Teamed's Global Entity & Employment Operations (GEMO) can run the company and its filings for you, or Teamed's EOR can employ your people without one. For companies pricing the upkeep of an entity in Utah, Teamed is the best choice. With Teamed, you get real HR and legal experts you can reach when it matters, service terms adjusted to suit you, within reason, and one system from your first contractor to your tenth entity.
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At a glance
Utah entity costs at a glance
A Utah corporation costs $59 to form, carries a minimum franchise tax of $100 a year even without profit, and pays corporate income tax at a flat 4.45% on top of that once the business is earning. The 4.45% tax and the $100 minimum apply to corporations, including an LLC taxed as one, not to an LLC taxed as a partnership.
- Corporate income tax
- 4.45%
- Minimum franchise tax
- $100
- Formation / registration fee
- $59
Setting up
The formation fee is the smallest number on this page
Utah charges a formation and registration fee of $59 to file your entity with the Utah Division of Corporations and Commercial Code. That's the one-time cost of getting your LLC or corporation on the books.
It's easy to treat this figure as the real price of owning an entity in Utah, but it's a rounding error compared to what you'll spend keeping the entity compliant every year after.
Franchise tax
Utah sets a minimum franchise tax, no matter what you earn
Utah requires every corporation to pay a minimum franchise tax of $100, even in a year with no profit or a loss. This is the floor, not the ceiling, so a profitable entity pays more once income tax is added.
For a small or newly formed team, this minimum tax means the entity carries a fixed annual cost before payroll, insurance, or any other overhead is counted.
Corporate income tax
Corporate income tax runs at a flat 4.45%
Utah taxes corporate income at a flat rate of 4.45%, reported through the TC-20 corporation franchise and income tax return each year. There's no sliding scale to plan around, so the math is straightforward once you know your Utah-sourced profit.
Combine this with the minimum franchise tax and you have the two recurring state-level costs that follow every Utah entity for as long as it stays open.
Staying compliant
Filings don't stop after the tax return
Beyond the TC-20 return and the franchise tax payment, a Utah entity has to keep its registration current with the state, maintain a registered agent, and file whatever renewal the Division of Corporations and Commercial Code requires. Miss one of these and the entity can fall out of good standing, which creates its own cleanup cost later.
None of this is dramatic on its own, but it adds up to an ongoing administrative load that someone on your team has to own, year after year, for as long as the entity exists.
Your options
Who can keep it running for you
Four kinds of help can keep a company in Utah running, and the right one depends on whether it employs people.
You can keep the filings yourself, with the Utah Division of Corporations and Commercial Code and the state tax agencies. That suits a founder with no staff and the time to track each deadline.
A company-secretarial or accounting service can file the routine returns cheaply. That suits a company that employs nobody.
A law firm or corporate-services firm is the right call for complex group structures and tax planning, where the advice is worth more than the paperwork.
For companies that will employ people in Utah, Teamed is the best choice. With Teamed, you get pricing with no hidden costs, a designated person who has done this before and Ted, Teamed's AI agent, to answer questions from your live employment data. Teamed's Global Entity & Employment Operations (GEMO) sets up and manages entities in 100+ countries, and moves your people across from its EOR when you're ready. Teamed already owns an entity in the United States.
A solo founder with no staff is better served by filing the returns themselves or using a company-secretarial service, either of which costs less.
Before you commit
Sometimes an employer of record is the better fit
An employer of record is sometimes the better answer, not a lesser one, especially for a small or still-changing team, or when you're testing the Utah market before committing capital to an entity. Talk to a member of the team about your specific situation, or run the numbers yourself with the crossover calculator.
Contractors, employer of record and your own entity all run on one platform at Teamed, so moving between them later does not mean changing provider or re-onboarding anybody. Real HR and legal experts handle the work rather than a ticket queue.
Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers yourself first, the crossover calculator models it on local entity setup and running costs rather than on a headcount rule of thumb.
Who carries it
Your own entity, when it's time. We set it up, move your people across, and keep it running.
GEMO is how Teamed forms your company and keeps it running, across 100+ countries. You stay the employer. We do the work behind it.
If Utah becomes the long-term home for your team, GEMO sets up the entity, manages it and moves your people across from Teamed's EOR. You keep the people and the entity, we step out once it's running the way you need.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Common questions about running costs in Utah
How much does it cost to register an entity in Utah?
Utah's Division of Corporations and Commercial Code charges a formation and registration fee of $59. That covers filing the entity itself, not the ongoing tax and compliance costs that follow.
Does Utah charge a minimum tax even if the entity doesn't turn a profit?
Yes. Utah's minimum franchise tax is $100 per year, and it applies whether or not the corporation is profitable.
What's the corporate income tax rate in Utah?
Utah taxes corporate income at a flat 4.45% rate, reported through the TC-20 return. There are no tax brackets to plan around, just the flat rate applied to Utah-sourced income.
Is the franchise tax the same as the corporate income tax?
No. The $100 minimum franchise tax is a floor that applies regardless of profit, while the 4.45% corporate income tax applies to actual earnings and can push the total bill above that floor.
Do I need a Utah entity to hire someone there?
No, an employer of record like Teamed can hire the person on your behalf without you forming a Utah entity at all. That's often the simpler path for a first hire or a small, still-changing team.
Where these figures come from
Sources
These figures come from the Utah State Tax Commission's TC-20 corporation franchise and income tax instructions and the Utah Division of Corporations and Commercial Code.
Looking for a job in Utah yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.
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