--- title: "Utah entity running costs and filings" description: "What it actually costs to form and keep a Utah entity compliant, formation fee, minimum franchise tax, and corporate income tax, explained plainly." canonical: https://www.teamed.global/country-hiring-guides/united-states/utah/entity-running-costs-and-filings --- ![Utah business district.](/cluster-assets/country-hiring-guides/united-states/utah/entity-running-costs-and-filings/images/hero.webp) # What does it costto run an entity in Utah. Teamed shows you the real cost of a Utah entity, formation fees, franchise tax, and corporate income tax, before you commit to owning one. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · Utah guide At a glance ## Utah entity costs at a glance A Utah entity costs $59 to form, carries a minimum franchise tax of $100 a year even without profit, and pays corporate income tax at a flat 5.0% on top of that once the business is earning. Corporate income tax5.0% 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 5.0% Utah taxes corporate income at a flat rate of 5.0%, 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. 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 salaries and employer costs rather than on a headcount rule of thumb. Talk to a member of the team Model the crossover for the United States Who carries it ## Your own entity, when it's time. We set it up, migrate you in, and hand it back intact. Global Entity and Employment Operations, which we call GEMO, is how Teamed forms your company, registers it for tax and payroll, runs it month to month and keeps its filings current, across 100+ countries. You stay the employer. We do the work behind it. If Utah becomes the long-term home for your team, we set up the entity, migrate your employees onto it, and hand you back a clean, compliant structure. You keep the people and the entity, we step out once it's running the way you need. Entity Management (GEMO) The Graduation Model Employer cost calculator > They set up our EU entity and moved hires across without missing a payroll. *Helene Dubois, COO* Talk to an expert about Utah 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 5.0% 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 5.0% 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. ## More on entities in Utah - [Hiring in Utah, overview](/country-hiring-guides/united-states/utah)parent - [Utah setting up](/country-hiring-guides/united-states/utah/entity-setup)sibling - [Utah tax presence](/country-hiring-guides/united-states/utah/permanent-establishment-risk)sibling - [Utah entity or eor](/country-hiring-guides/united-states/utah/eor-vs-entity)sibling - [Utah moving from an eor](/country-hiring-guides/united-states/utah/moving-from-eor-to-your-own-entity)sibling - [Set up an entity, by country](/entity-setup-by-country)hub - [Entity Management (GEMO)](/entity-management)core - [Talk to an expert about Utah](https://www.teamed.global/contact?from=entity-running-costs-and-filings)CTA