Name: Stavros Law P.C.
Address: 8915 S 700 E, Ste. 202, Sandy, UT, 84070, US
Telephone: +1-801-758-7604
Price range: $$

Question 1

What is the best business entity for my Utah business?

Accepted Answer

The right entity depends on your specific situation — the number of owners, the nature of the business, your tax goals, and your liability concerns. LLCs are the most flexible and are appropriate for most small and mid-size businesses. C corporations are preferred for businesses seeking venture capital or planning to go public. S corporations offer pass-through taxation with corporate structure. We advise on entity selection based on your specific goals and circumstances.

Question 2

Do I need an operating agreement for my Utah LLC?

Accepted Answer

Utah law does not require a written operating agreement, but every LLC should have one. Without a written operating agreement, your LLC is governed by Utah's default LLC statute, which may not reflect your actual intentions regarding management, distributions, and member rights. A well-drafted operating agreement prevents disputes and protects all members' interests.

Question 3

How does an LLC protect my personal assets?

Accepted Answer

An LLC creates a legal separation between the business and its owners. If the LLC incurs debts or is sued, the owners' personal assets are generally protected — creditors can only reach the LLC's assets, not the owners' personal bank accounts, homes, or other property. However, this protection can be lost if owners fail to maintain the LLC properly — by commingling personal and business funds, failing to follow formalities, or personally guaranteeing business debts.

Question 4

What is a buy-sell agreement and do I need one?

Accepted Answer

A buy-sell agreement governs what happens to an owner's interest when they want to exit the business, die, become disabled, or are involved in a dispute with co-owners. Without a buy-sell agreement, these transitions can result in costly litigation or force the business to take on unwanted new owners. Every business with more than one owner should have a buy-sell agreement in place from the start.

Question 5

What is the difference between a manager-managed and member-managed LLC?

Accepted Answer

In a member-managed LLC, all members have authority to act on behalf of the LLC and participate in management decisions. In a manager-managed LLC, management authority is delegated to one or more designated managers — who may or may not be members. The choice between member-managed and manager-managed structure depends on the number of members, the nature of the business, and the owners' preferences for day-to-day management.

Question 6

How much does it cost to form a business in Utah?

Accepted Answer

The state filing fee to form an LLC or corporation in Utah is relatively modest. However, the cost of proper legal formation — including a well-drafted operating agreement or bylaws, buy-sell provisions, and initial governance documents — is a worthwhile investment that can prevent far more expensive disputes later. We provide transparent pricing for business formation services.

Question 7

Can I convert my existing business to a different entity type?

Accepted Answer

Yes. Utah law allows conversion of an existing business entity to a different entity type — for example, converting a sole proprietorship or partnership to an LLC, or converting an LLC to a corporation. Conversion can have significant tax and legal implications, and should be done with the advice of both a business attorney and a tax professional.

Question 8

What ongoing legal obligations does my Utah business have?

Accepted Answer

Utah businesses must file an annual report with the Division of Corporations and Commercial Code and pay the associated fee. Corporations must hold annual meetings, maintain minutes, and follow other corporate formalities. LLCs have fewer formalities but should maintain records of major decisions. We advise clients on ongoing compliance obligations and help them maintain the legal protections their entity provides.

Business Formation Lawyer Utah

Utah Business Formation Attorneys

Formation Services

LLC Formation

Corporation Formation

Operating Agreements & Bylaws

Buy-Sell Agreements

Partnership Agreements

Professional Entities

Frequently Asked Questions

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