Starting an LLC in Utah is a complicated process. You need to have a business plan, resources at your disposal, and the wits to outmatch your competitors. While these factors make starting an LLC challenging, many LLC owners forget that state requirements also have to be met. One of them is selecting someone or an entity to serve as the LLC's registered agent.
Registered agents play an important role in a company. They make sure the company is compliant and that all documents are filed with the state on time. So overlooking the registered agent position can lead to expensive fees and even the closure of your company by the state.
The good news is that we're here to help. We will take you through everything you need to know about registered agents in Utah and why a registered agent service might be right for you.
What Is a Utah Registered Agent?
A registered agent is a person or entity that serves as the point of contact between the LLC and the state of Utah. This makes the registered agent position one of the most important parts of the LLC. Without a registered agent, there are penalties, fines, and other legal problems that can occur. In Utah, having an appointed registered agent is required by law, and their address must be listed publically.
While registered agents serve as the point of contact for the LLC, they also do more than that. Registered agents do things like:
- Handling the legal process in Utah (obtaining lawsuit documents)
- Filing annual reports
- Keeping the LLC compliant
- Data storage
These are only a handful of services that registered agents handle. Moreover, working with a registered agent service can help you with things like tax filing and accounting.
Can the Owner Be the Registered Agent?
LLC owners can appoint themselves as the registered agent to their company or even other employees. A registered agent can be anyone who has a primary address in Utah as long as the address isn't a post office box. Plus, registered agents can also be outside companies with an address in Utah. This is where registered agent services enter the mix.
While registered agents can be anyone, we always recommend working with a professional service. These services can make your life easier and help you maintain your privacy.
Why Do Businesses Need a Registered Agent in Utah?
Businesses need a registered agent in Utah for several reasons. First and foremost, it's required by law. Secondly, a registered agent handles communication with the state and ensures everything is up to par. That said, working with a registered agent service is the most efficient way to go about this. We're going to take you through why it's best to work with a registered agent service.
We'll begin with privacy. Privacy is essential because keeping your personal life separate from your business is crucial. You don't want the public to know where you live or personal information about yourself and your family. That's simply a liability not worth having. If you decide to be your own registered agent, you have to deal with this because the registered agent must list their address publically with the state.
The good news is that reputable registered agent services can provide you with privacy. This is because the company can list its address and information instead of you needing to do so. Working with a registered agent service also makes it easier to handle the legal process because all legal documents go discreetly through the service.
Registered agents' schedules cannot be flexible. For example, registered agents in Utah need to be available during all business hours that are not holidays. You don't get to take a vacation as a registered agent, especially if the state needs information. Doing so can result in penalties and falling out of compliance with Utah.
Working with a registered agent service can make flexibility possible. Instead of the LLC owner handling all of this communication, the service can instead. This makes it easier for LLC owners to focus on their business or enjoy vacations instead of stressing about compliance.
Compliance is vital when it comes to registered agents. The state of Utah requires that LLCs remain compliant with state regulations and laws. Falling out of compliance can lead to costly penalties or even the shutdown of a company. For this reason, working with a registered agent service is important.
Registered agent services will take on the responsibility of filing paperwork and making sure the LLC remains compliant. Moreover, working with a service like this makes it easier to focus on your LLC instead of worrying about if the LLC is compliant with state regulations.
Storing data is a big part of being a registered agent, and having documents available for the state if needed makes things easier. While you can try to store the data on your own, working with a registered agent service makes it easier.
Registered agent services can store your data for long periods and provide you with it when needed. These services also use cloud software to send and receive data faster. Plus, they can store reports for years so that you never lose anything. Overall, working with a registered agent service can help you stay organized.
While having a registered agent is required by law, employing a service can make your life easier.
What To Look for When Choosing a Utah Registered Agent
Choosing a registered agent in Utah is easier said than done. You might be tempted to be the registered agent yourself or choose someone close to you. While you can do so, we recommend working with a registered agent service for the added benefits and peace of mind.
To help you narrow down your options, we're going to show you how to compare registered agent services.
When choosing a registered agent service, the first thing you want to look for is professionalism. While you can choose a friend, employee, or yourself to be the registered agent, 9/10 times, it's best to work with a professional registered agent service. Doing so will save you time, money, and effort. You won't have to worry about paying late fees, making sure the information was filed properly, and more.
There are several options when it comes to a professional registered agent service. That said, we recommend working with companies that do more for less. Check to make sure the cost is affordable, the data storage is good, and that customer service comes first.
Registered agent services vary in price. What dictates the fee depends on the company, but a lot depends on the package you choose. Most registered agent services offer several unique packages that provide you with different benefits. More expensive packages will provide you with more benefits, but the tradeoff is paying more money each year. So when shopping based purely on cost, you have to make sure you're okay with what you get.
The average price of a registered agent service is between $50 and $500 per year. $50 will typically get you a basic registered agent package that handles everything required by the state of Utah. The $500 packages will typically offer bonus features like accounting, tax filing, and more.
Registered agent services should have a solid reputation. This means you should only be working with companies that have good reviews, excellent customer service, and national coverage. Good reviews and customer service make it easier to communicate with the company and indicate how others like the service. In fact, good reviews can help you determine how likely the company is to stay in business.
National reputation is also important if you want to move locations. Having a registered agent that operates in more states than Utah can make your transition easier and more cost-friendly. Plus, it's nice not to have to change services as you expand, especially when it comes to moving data.
Data management is crucial when shopping for a registered agent service. Data management involves storing documents that are important for the state. In Utah, the state requires filing to be done, the legal process to be upheld, and more. Holding onto important documents is a great way to make sure you're prepared if the state needs anything.
That said, some companies are better than others with data management. So it's important to make sure you're working with a company that uses cloud storage. This way, you can send and receive documents whenever you need to. Moreover, cloud storage offers more storage space in general, so you can hold onto documents for longer.
Software is what separates most registered agent companies from one another. A good registered agent company has basic software needed to store information, send information to you, and send information to the state. That said, the best registered agent services have more than basic storage software.
The best registered agent companies offer unique software options that can help you with accounting, tax filing, and more. Plus, these companies will use cloud storage to help you store more data and to help you move data around faster.
There are good and bad registered agent companies; we recommend working with a registered agent service that can provide you with everything we mentioned above.
How Much Do Utah Registered Agents Cost?
Registered agents in Utah can cost zero dollars or thousands of dollars; it depends on what you're looking for. One example is a situation where you appoint someone you know to be the registered agent–or even yourself. In this case, having a registered agent won't cost you anything unless you have to pay late fees because of missed filing days. That said, working with a registered agent service is almost always the better option.
Registered agent services in Utah can cost anywhere between $39.99 and $1,000 (paid annually). When looking into registered agent services and what influences the price, it comes down to what you need from the service. Some services are expensive because they offer cloud storage, accounting, and tax filing. Companies that offer packages like that can cost more than $500 annually.
The good news is that some companies offer basic packages if you don't want to commit to high fees each year. These services are often around $50 per year and cover basic registered agent tasks. This includes filing, communicating with the state of Utah, and handling the legal process.
There are options for all businesses, but we recommend at least looking into a basic package to get started.
What's the Best Registered Agent Service in Utah?
ZenBusiness is the best registered agent service in Utah. The company provides you with everything you need to never worry about registered agents and the requirements from the state again. With ZenBusiness, you can focus on your company and its day-to-day needs instead of worrying about filing reports, storing government data, and handling due process legal issues.
While several registered agent services operate in Utah, ZenBusiness is the best for several reasons. First and foremost, ZenBusiness provides you with options. Several packages can be customized to fit your budget, needs, and business. Each package includes a basic registered agent service, but you can utilize additional benefits like tax filing, accounting, and cloud-based data storage if you're willing to pay more.
ZenBusiness also has a great reputation across the country. The company has reviews that maintain a 4 star rating and national coverage. So, if you need to, you can move your company's headquarters and still use a registered agent from ZenBusiness. Overall, the company makes everything as simple as possible for your company.
Every company in Utah needs a registered agent, so it's important to find one you trust. If you're having trouble, ZenBusiness is always there to help.
Read our detailed guide here
for more information about registered agent services and ZenBusiness.