Discover the fundamentals of a Utah general partnership, where people work together to manage duties and share profits. Explore our guide for essential insights, vital for entrepreneurs seeking success in Utah’s dynamic business landscape.
As a general rule, if two or more people decide to start a business in Utah, they have officially started a Utah general partnership. It’s that easy. A general partnership is a simple business structure to use for a new Utah business, especially if there are just a few owners.
With a partnership, the owners share in the profits and the debts, along with the responsibilities of running the company. If you complete the following steps, you can have a Utah general partnership set up in no time.
With every type of business structure offered by Utah, there are positive and negative aspects. It’s your job to research these structures and decide if the positives outweigh the negatives. We can help you decide which business structure to use if you’re having trouble deciding. With a general partnership, review the pros and cons to see if it’s right for your company.
There are several positives about forming a partnership:
If you and at least one other person plan on starting a new business, a Utah general partnership is an easy and quick way to get started.
To make a fully informed decision on whether to create a partnership, you have to understand the cons as well.
Once you consider the pros and cons of using a partnership, you should be able to decide if it’s a good choice of business structure to meet your plans.
Before you choose a name for your Utah general partnership, you have to make sure the name isn’t already in use by another Utah company. This can be done by doing a business name search for the state of Utah. Typically, your business name will be made up of the names of the partners. If you want to use a different name, you’ll have to register it with the state.
A general partnership that wants to operate under a name different from the names of its owners will need to register an assumed name. This is also known as a DBA or “doing business as” name in other states. Use our Utah DBA name search and registration services to easily accomplish this task.
Utah doesn’t require the use of a partnership agreement. However, it’s a good idea to take the time to draft one. Having a Utah general partnership agreement in place before you start your business will save you from potential future headaches. Partnership agreements are a good way to establish a process to resolve conflicts. If there isn’t an agreement, then conflicts may be resolved pursuant to the Utah Uniform Partnership Act. This may not be ideal. That’s why it’s important to establish rules of the partnership beforehand.
Every company in Utah, no matter what it does, will most likely require licenses, permits, or clearances from local, county, or state governmental entities. These are important to get in place before you start your business so that you stay compliant. That’s why we work with Avalara to put together a Business License Report detailing the various licenses, permits, and clearances necessary for your business to operate legally.
Every business needs an EIN unless you’re operating a sole proprietorship. An EIN is like your company’s social security number, allowing you to file your taxes, open a checking account, and do other things like apply for business loans. Use our Employer ID Number Service so that your company can be properly identified with the IRS and banks.
For Utah, you need to visit the Taxpayer Access Point website to apply for a Utah tax ID number and account. This will allow you to pay whatever state taxes your general partnership needs, such as sales, use, and withholding taxes.
Once all these steps are complete, then you’re ready to go! You can further set your business up for success by buying the correct business insurance and lining up a tax professional to help you with your quarterly or yearly taxes.
Our Utah business formation experts are ready to help you get your new partnership up and running and on the road to success. Use our business development and maintenance services, and our Worry-Free Compliance Service to help you stay on top of managing your Utah general partnership.
Disclaimer: The content on this page is for information purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
No, not unless you intend to operate under an assumed name. To do that, you will need to register your assumed name.
No. A general partnership isn’t subject to Utah income tax. However, individual partners conducting business are liable for Utah income tax in their separate or individual taxes.
There’s not much difference between an owner and a partner in that a partner is a co-owner of the general partnership. A partner has to share in the profits and liabilities with the other partners.
A Utah general partnership is organized simply by beginning to conduct business with another person. All the partners in the business share in the responsibilities for operating the company and share in the liabilities of the business debts.
Every partner is responsible for the debts and liabilities acquired by the general partnership.
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