Utah LLC Taxes: The Complete Filing Guide (2025)

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:

1. Your LLC earns income from business activities
2. The LLC itself files no tax return (unless you elect otherwise)
3. Profits “pass through” to members based on ownership percentage
4. Each member reports their share on their personal tax return
5. 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.

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:

1. File Form 2553 with the IRS
2. Pay yourself a “reasonable salary” subject to employment taxes
3. 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 State Tax Commission
• Utah Taxpayer Access Point (TAP)
• Internal Revenue Service
• Utah Department of Workforce Services
• Utah Division of Corporations and Commercial Code