Utah LLC Taxes: The Complete Filing Guide (2025)
Running a limited liability company (LLC) in Utah means dealing with taxes at federal, state, and sometimes local levels. This guide simplifies everything you need to know to stay compliant and avoid surprises, from income tax and sales tax to city-specific requirements.
Recommended: Schedule a free consultation with 1-800Accountant to stay on top of your taxes.

Utah LLC Tax Basics
Navigating your Utah LLC tax obligations doesn’t have to be complicated. We’ll walk you through the essentials of pass-through taxation, explain Utah’s specific requirements, and highlight strategies to stay compliant and organized. This guide covers everything from federal income taxes to city-specific requirements and filing deadlines.
Use the links below to jump directly to the section you need:
- Utah LLC Taxes at a Glance
- Understanding LLC Taxation Basics
- Federal Tax Obligations
- Utah State Taxes
- Local Tax Considerations
- Tax Calendar and Filing Tips
- Tax Strategies for Utah LLCs
- Forms and Resources
Utah LLC Taxes at a Glance
Tax Type | Rate | Filing Deadline | Forms Required |
---|---|---|---|
Federal Income Tax | 10-37% (personal brackets) | April 15, 2025 | Form 1040 + Schedule C or Schedule E/K-1 |
Self-Employment Tax | 15.3% | April 15, 2025 | Schedule SE |
Utah Individual Income Tax | 4.55% | April 15, 2025 | Form TC-40 |
Utah Pass-Through Entity Tax | 4.55% | April 15, 2025 | Form TC-20S/TC-65 |
Utah Corporation Franchise & Income Tax | 4.55% ($100 minimum) | April 15, 2025 | Form TC-20 |
Federal Payroll Taxes (If Employees) | 7.65% employer + 7.65% employee (FICA) | Quarterly (April 30, July 31, October 31, January 31) | Form 941 |
Utah Unemployment Tax (If Employees) | 0.2%–7.2% | Quarterly | Filed online |
Federal Unemployment (FUTA) | 6% on first $7,000 per employee (0.6% after credits) | January 31, 2026 (annual) | Form 940 |
Sales & Use Tax | 4.85% (+ up to 3.9% local rates) | Monthly, quarterly, or annually based on sales volume | Form TC-62S |
Annual Renewal | $18 fee | By the anniversary of LLC formation | Filed online |
Understanding LLC Taxation Basics
How Utah LLCs Are Taxed By Default
Your Utah LLC doesn’t pay taxes itself. Instead, profits flow through to you and your members, who report them on personal tax returns. This is called pass-through taxation.
Here’s how it works:
- Your LLC earns income from business activities
- The LLC itself files no tax return (unless you elect otherwise)
- Profits “pass through” to members based on ownership percentage
- Each member reports their share on their personal tax return
- Members pay tax at their individual income tax rates
What this means for you: Unlike corporations, your business profits are only taxed once, which typically saves money.
Time-Saving Tip: If you’re uncertain about your LLC’s tax classification, a tax professional can review your LLC’s tax setup in 30 minutes and help you choose the most tax-efficient option.
Tax Classification Options
While pass-through taxation is the default, your Utah LLC can choose alternative tax treatments:
Default LLC Tax Status:
- Single-member LLC: Taxed as a sole proprietorship
- Multi-member LLC: Taxed as a partnership
Optional Tax Classifications:
- S Corporation: Can reduce self-employment taxes by paying “reasonable salaries”
- C Corporation: LLC pays corporate tax on profits, members pay personal tax on distributions (creates double taxation)
Utah Pass-Through Entity Tax Option:
- Optional tax that allows LLCs taxed as partnerships or S Corps to pay tax at the entity level
- Can help overcome the $10,000 SALT deduction limitation
- Applies for the specific tax year the election is made
- Cannot be revoked for that year once made
Not sure which tax classification is right for your business? Schedule a free consultation with 1-800Accountant.
Federal Tax Obligations
Income Tax
As a Utah LLC owner, you’ll report your share of business profits on your personal tax return using:
- Form 1040 + Schedule C (single-member LLCs)
- Form 1040 + Schedule E + Schedule K-1 (multi-member LLCs)
Federal income tax rates range from 10% to 37% based on your tax bracket (actual brackets will depend on inflation adjustments and any tax law changes).
Simply Put: Whatever money your business makes (after expenses) gets added to your personal tax return, just like income from a job.
Self-Employment Tax
LLC members actively involved in the business must pay self-employment tax of 15.3% (covering Social Security and Medicare) on their share of LLC profits.
Key points:
- Applies to net earnings of $400 or more
- Calculated on Schedule SE
- You can deduct 50% of the self-employment tax as an “above-the-line” deduction, which lowers your adjusted gross income
What happens if I miss this payment? The IRS charges penalties of 0.5% per month plus interest. However, first-time mistakes can often qualify for penalty abatement if you have a clean compliance history.
Employment Taxes
If your LLC has employees, you must:
- Withhold federal income tax
- Pay and withhold FICA taxes (7.65% each for employer and employee)
- Pay federal unemployment tax (FUTA)
- File quarterly employment tax returns (Form 941)
- Provide W-2 forms annually
Estimated completion time: 2-3 hours per quarter (significantly less with payroll software or professional help)
Estimated Tax Payments
Because no tax is withheld from your LLC profits, you’ll likely need to make quarterly estimated tax payments using Form 1040-ES. These payments cover both income and self-employment taxes on your share of the business income. Missing deadlines or underpaying can lead to IRS penalties, even if you pay in full later.
Working with an accountant can help ensure accurate calculations, on-time payments, and a smarter overall tax strategy.
Key deadlines:
- April 15
- June 16
- September 15
- January 15
Pro Tip: Set calendar reminders 15 days before each deadline. This gives you time to prepare without the last-minute rush that leads to mistakes.
Utah State Taxes
Utah Income Tax
Utah has a flat personal income tax rate of 4.55% that applies to your LLC’s profits on your personal return.
Filing requirements:
- Use Utah Form TC-40
- Due April 15, 2025
- Utah follows federal adjusted gross income as a starting point
Bottom Line: For every $1,000 your LLC earns, you can expect to pay about $45.50 in Utah state income tax (in addition to federal taxes).
Utah Pass-Through Entity Tax
This optional tax can benefit many Utah LLC owners:
- Tax rate: 4.55% (same as personal rate)
- Paid by your LLC instead of individual members
- Members receive a tax credit on their personal returns
- Helps bypass the $10,000 SALT deduction limitation
- Elect annually with Form TC-75 by the last day of your LLC’s taxable year (December 31 for calendar-year filers)
- Use Utah Form TC-20S (S corps) or Form TC-65 (partnerships) to file
Real Savings Example: For an LLC with $200,000 in profits, the Pass-Through Entity Tax could save owners up to $9,100 in federal taxes by working around the SALT deduction cap.
Utah Corporation Franchise and Income Tax
If your LLC is taxed as a C Corporation:
- Pay 4.55% flat tax on net income ($100 minimum)
- File using Form TC-20
- Due April 15, 2025 (for calendar-year entities)
Note: This tax does not apply to LLCs taxed as pass-through entities. Only C Corp – elected LLCs are subject to Utah’s corporate-level tax.
Sales and Use Tax
If your Utah LLC sells physical products or certain services:
- Collect 4.85% sales tax (plus any applicable local surtaxes)
- Register for a sales tax license through the Utah State Tax Commission
- File and pay collected taxes monthly, quarterly, or annually based on sales volume
- Due dates vary based on filing frequency
60-Second Check: Do I Need to Collect Sales Tax?
- Do you sell physical products in Utah? → If yes, collect tax
- Do you sell digital products? → Generally not taxable
- Do you provide services? → Most services are exempt
- Do you sell online to Utah customers? → If yes, collect tax
Services typically exempt from sales tax include:
- Professional services (legal, accounting)
- Personal services (haircuts, fitness training)
- Medical services
Products typically subject to sales tax include:
- Tangible personal property
- Prepared food
- Some digital products
Payroll Taxes
If you have employees in Utah, you will be responsible for two types of payroll taxes.
Unemployment Insurance (UI) Tax
- Register through the Utah Department of Workforce Services
- For new employers, the rate is based on the industry average (typically around 1.0%)
- For established employers, rates range from 0.2% to 7.2% based on experience
- Due quarterly
Withholding Tax
- Register through the Utah State Tax Commission
- Use the state’s official withholding tables to calculate the correct amount to withhold
- Due monthly, quarterly, or annually (filing frequency assigned by the Tax Commission)
Annual Renewal Filing
While not a tax, your Utah LLC must file an annual renewal (also known as an annual report):
- Due each year by the anniversary of your LLC’s formation
- $18 filing fee
- Filed with the Utah Division of Corporations and Commercial Code
- Failure to file may result in the administrative dissolution of your LLC
Calendar Alert: Set a reminder for two weeks before your LLC’s anniversary date to ensure you don’t miss this easy but required filing.
Local Tax Considerations
Local Option Sales Taxes
Utah allows local governments to impose additional sales taxes on top of the state’s base rate, which can significantly increase the total rate charged on taxable sales.
Cities with local sales taxes include:
- Salt Lake City (8.25% total rate)
- Provo (7.45%)
- Ogden (7.25%)
- Park City (9.05%)
- Moab (8.85%)
- Over 100 other cities and counties across Utah
Filing requirements:
- You do not need to file separate returns for each city or county
- Both state and local sales taxes are reported together
- Due monthly, quarterly, or annually, depending on your assigned filing frequency
Property Taxes
If your LLC owns real property in Utah:
- Rates vary by locality
- Assessed annually
- May qualify for various exemptions based on business type
- Personal property tax may apply to business equipment
Tax Calendar and Filing Tips
Key Deadlines for Utah LLCs
January:
- January 15: Final estimated tax payment for previous year
- January 31: Fourth quarter Utah UI tax payment due
- January 31: Issue W-2s/1099s to employees/contractors
- January 31: Fourth quarter federal payroll tax payment due
April:
- April 15: Individual, PTET, or corporate income tax returns due
- April 15: Federal income and self-employment tax returns due
- April 15: First quarter estimated tax payment due
- April 30: First quarter Utah UI tax payment due
- April 30: First quarter federal payroll tax payment due
June:
- June 16: Second quarter estimated tax due
July:
- July 31: Second quarter Utah UI tax payment due
- July 31: Second quarter federal payroll tax payment due
September:
- September 15: Third quarter estimated tax payment due
October:
- October 31: Third quarter Utah UI tax payment due
- October 31: Third quarter federal payroll tax payment due
December:
- December 31: Deadline for Utah PTET election
Record-Keeping Checklist
Keep these records for at least seven years:
- Business income records (invoices, receipts)
- Expense receipts and documentation
- Bank and credit card statements
- Asset purchase and improvement records
- Vehicle mileage logs
- Home office documentation
- Payroll records
- Previous tax returns
Tax Strategies for Utah LLCs
S Corporation Election Benefits
Converting your LLC to an S Corporation for tax purposes can save on self-employment taxes:
- File Form 2553 with the IRS
- Pay yourself a “reasonable salary” subject to employment taxes
- Take remaining profits as distributions exempt from self-employment tax
Example: An LLC making $100,000 in profit pays 15.3% self-employment tax on the entire amount. As an S Corp, if $60,000 is a reasonable salary and $40,000 is taken as distributions, only the $60,000 is subject to employment taxes.
Potential Savings: In this example, you’d save about $6,120 in self-employment taxes.
Pass-Through Entity Tax Election
Consider electing Utah’s Pass-Through Entity Tax if:
- You’re affected by the $10,000 SALT deduction cap
- You expect your LLC to generate significant net income
- All members agree to the election
Business Expense Deductions
Common deductions Utah LLC owners often overlook:
- Home office deduction
- Business mileage (70¢ per mile for 2025)
- Health insurance premiums
- Retirement plan contributions
- Professional development expenses
- Business meals (50% deductible)
Forms and Resources
Federal Tax Forms
- Schedule C: Profit or Loss From Business (sole proprietors)
- Form 1065: U.S. Return of Partnership Income
- Schedule K-1: Partner’s Share of Income, Deductions, Credits
- Form 1120-S: U.S. Income Tax Return for an S Corporation
- Form 2553: Election by a Small Business Corporation (S Corp)
- Form 8832: Entity Classification Election
Utah Tax Forms
- Form TC-40: Utah Individual Income Tax Return
- Form TC-75: Utah Pass-Through Entity Tax Election
- Form TC-20S: Utah S Corporation Income Tax Return (PTET)
- Form TC-65: Utah Partnership Income Tax Return (PTET)
- Form TC-20: Utah Corporate &Franchise Tax Return
- Form TC-62S: Sales and Use Tax Return
Helpful Resources
Utah LLC Taxes FAQs
Yes, Utah is considered a favorable state for forming an LLC due to its straightforward filing process, relatively low fees, and business-friendly environment. The state’s flat tax rate and various tax exemptions available for LLCs add to its appeal for business owners.
For more information, have a look at our Utah LLC article.
In Utah, businesses are subject to various state taxes, including sales and use taxes and property taxes on real estate and tangible assets. Industry-specific taxes, such as the Insurance Premium Tax, may also apply depending on the business type.
Utah is generally considered tax-friendly for businesses, offering a single tax rate for corporations and individual income, as well as a range of tax credits and exemptions.
Interested in finding out more? Check out our LLC Taxes article.
Need Professional Help? While this guide covers the essentials, tax laws are complex and constantly changing. Schedule a free consultation with 1-800Accountant to ensure your Utah LLC remains fully compliant while minimizing your tax burden.