Mark Required Fields In Legal Utah Startup For S-Corporation Forms For Free

S corporations don't pay franchise and income taxes. Instead, their members pay individual income tax on their proportionate share of the income. But they use Form TC-20S to pay use tax (if they don't have a Utah sales tax license/account) and pass-through withholding (see below).

As an LLC member in Utah, you'll pay both federal and state personal income tax, along with the federal self-employment tax of 15.3%. Utah collects personal income tax at a flat rate of 4.85%. Other taxes that may apply to your Utah LLC include the state's 6.1% sales tax, industry-specific taxes, and employer taxes.

Follow these five steps to start a Utah LLC and elect Utah S corp designation: Name Your Business. Choose a Registered Agent. File the Utah Certificate of Organization. Create an Operating Agreement. File Form 2553 to Elect Utah S Corp Tax Designation.

To qualify for S corporation status, the corporation must meet the following requirements: Be a domestic corporation. Have only allowable shareholders. ... Have no more than 100 shareholders. Have only one class of stock.

S corps don't pay federal corporate income taxes, so there is not really an ?S corp tax rate? (although they may get taxed at the state level). Instead, the company's individual shareholders split up the income (or losses) amongst each other and report it on their own personal tax returns.

An S corporation is an ordinary business formed and operated under a state's general corporation law. It is like any other corporation, except for this difference: It is like any other partnership for federal income tax purposes.