There are many different types of Utah business entities. A brief description of each is listed below.
Choosing a start a business can be intimidating, however, once someone has decided to start a business, they should know what kind of business they want to run. There are several variables that go into starting and maintaining a business. Tax, liability, and business operations are some of the major components one should consider while starting a business.
Types of Businesses (entities): There are several different kinds of businesses in Utah:
Doing Business As (DBA) can be a Sole Proprietor or a General Partnership. It can also be owned by an entity that wishes to transact business under an assumed name (UDC, Division of Corporations and Commercial Code).
Limited Liability Co. (LLC) is a new form of business entity that combines the operational flexibility and tax status of a general partnership with the limited liability protection traditionally associated and corporations (UDC, Division of Corporations and Commercial Code).
Partnership (Utah business entities)
Limited Liability Partnerships (LLP) is a business relationship in which one partner is not responsible for the negligent acts committed by another partner or by the employees not under that partner’s supervision. Also, each partner is not responsible or liable for certain acts of other partners (UDC, Division of Corporations and Commercial Code).
Domestic Limited Partnerships (LP) is composed of one or more general partners and one or more limited partners. The general partners manage the business and share fully tin its profits and losses. Limited partners share in the profits of the business, but their losses are limited to the extent of their investment. Limited partners are usually not involved in the day-to-day operations of the business (UDC, Division of Corporations and Commercial Code).
Limited Cooperative Associations (LCA) is an autonomous, unincorporated association of persons united to meet their mutual interests through a jointly owned enterprise primarily controlled by those persons, which permits combining (a) ownership, financing, and receipt of benefits by the members for whose interests association is formed; and (b) separate investments in the association by members who may receive returns on their investments and a share of control.
Business Trustis created for the primary purpose of operating or engaging in a business. It must have a business purpose and actually function as a business (UDC, Division of Corporations and Commercial Code).
Collection Agencyis a business that pursues payments on debts owed by individuals or businesses (UDC, Division of Corporations and Commercial Code).