Utah is similar to most states, requiring individuals and groups to become incorporated in order to enjoy protections from liability and responsibility to a certain extent. To start a business, the state requires only that you become registered at the state or local level and filing for corporation is not necessary. In the case of those who wish to increase the size of the business and enjoy certain protections from liability, the state offers all manner of different types of corporations to choose from. Featuring various levels of liability, businesses can choose from limited liability corporations, sole proprietorships, limited partnerships and all manner of other different types of corporations. While it is outside the scope of this article to detail each type of corporation in full, it would certainly be wise, before starting a business in Utah, to conduct the proper research and understand exactly what your options are and your liabilities will be in each case. In this way, you can ensure that you have a complete understanding of business law in Utah.
Who Needs to be Incorporated?
Considering business law in Utah, there is the question of who exactly needs to be incorporated, as many businesses can operate without any type of incorporation whatsoever. If you wish to be freed from liability, it is a very good idea indeed to become incorporated in order to prevent any type of legal action from crippling you on a personal level from continuing to do business. This is the purpose of corporation after all, to insulate you as the proprietor from legal action should the unthinkable occur. With these different types of corporations available, it only remains for you to decide what type of corporation would be most suitable for the purposes of your business. In the case of those who require full insulation, incorporating can make all the difference in the world and protect you from all manner of difficulty.
General Business Law in Utah
Utah, similar to many states, requires that the position of director or a corporate officer be filled before a corporation can exist. In this way, someone is considered to be liable for the day to day decisions of the corporation itself and can be depended upon to understand the articles of incorporation and can answer to the law if something should go awry. Although corporations provide insulation for those who are members and directors, it is still a requirement that someone somewhere be fiscally responsible as well as legally liable for any difficulties arising from legal troubles in the future.
