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Rental property LLCs in Utah

Yes, you can hold a Utah rental in an LLC. You file a $59 Certificate of Organization with the Division of Corporations and Commercial Code, then renew every year for $18, by the end of the month the LLC was formed. Utah allows series LLCs by statute. The Utah catch is property tax: the 45% residential exemption goes only to a home lived in for 183 consecutive days a year by an owner or a full-time tenant, short-term rentals don't qualify, and a deed to your LLC means telling the county again. Salt Lake City, Park City and St. George each license rentals and nightly rentals their own way. Forming the LLC doesn't move your deed or stop a lender's due-on-sale clause.

Last checked 2026-10-24. General information, not legal or tax advice.

Local rental rules come first

Salt Lake City. "All residential rental properties within the corporate limits of Salt Lake City are required to maintain a valid, unexpired business license for each location." Owners who join the Landlord/Tenant ("Good Landlord") program and finish a four-hour training course within six months of applying pay far less per unit. The consolidated fee schedule, amended June 16, 2026, lists a $198 base fee for a residential rental from September 2026 ($193 before), then $342 per rental unit, or $35 per unit with Good Landlord certification. The program FAQ says an owner-occupied rental of four units or fewer may be exempt from the per-unit fees and participation (Business Licensing page; Landlord/Tenant FAQ; Consolidated Fee Schedule).

Salt Lake City short-term rentals. A dwelling rented for fewer than 30 days needs its own business license before you advertise or take bookings, and only in approved zoning districts: MU2, MU3, MU5, MU6, MU8, MU11, M1, M1-A, D1 through D4, GMU, RP, BP, A and JRF. The Planning FAQ says that in general they aren't allowed in the city's residential zones. A licensee may hold only one short-term rental license in the city, each license covers one property and one dwelling unit, stays must run at least two consecutive nights, and each rental is capped at 200 rental nights a year. In a building of more than eleven units an owner may license up to 10% of them. The ID the city asks for can belong to "a member of the LLC, corporation, or partnership listed on the Utah business registration," and a condo needs an HOA authorization letter. The fee schedule lists $342 per unit for short-term rental property in approved zones, and the Planning FAQ says Business Licensing would begin accepting applications on July 1, 2026 (slc.gov Short-Term Rentals; Planning FAQ; Consolidated Fee Schedule).

Park City. The city lists a Nightly Rental License, "required for any property that rents for less than 30 days," alongside its general business license. Its code says "All nightly rental Units must be inspected by the Building Department and issued a license before being offered for rent," that the owner is the licensee, and that the unit must sit in a zone and subzone that allows rentals for the period. The application needs a responsible party who lives within a one-hour drive or, for a company, has an office in Summit County, who can be reached 24 hours a day and must answer within 20 minutes. It also needs a sales tax number: "no license will be effective until the sales tax number is provided" (Park City permits page; Mun. Code § 4-5-3).

St. George. The city allows short-term rentals only in designated areas, not in single-family zones for stays under 28 days, and publishes a list of approved properties in named developments such as Green Valley, Entrada, The Ledges and Redhawk (code enforcement FAQ; Approved Short Term Rental Properties list). A long-term rental needs a business license, and the Rental Dwelling License Checklist says "The name on the rental dwelling license must match exactly the name recorded as the Owner on Title with Washington County Assessor," so the license goes in the LLC's name only once the deed puts the LLC on title. An LLC or corporation must provide entity documents naming all principals, and a change of ownership needs a new application within 30 days. Owners outside Washington County must list a local agent or property manager, and three or more units may require a city inspection (checklist).

Statewide. A city may require a business license or permit for a short-term rental, meaning a residential unit offered for fewer than 30 consecutive days, but may not ban listing one on a rental website (Utah Code § 10-8-85.4(1)(e), (2), (4)). A county, city or town "may not enact an ordinance or resolution that would control rents or fees on private residential property unless it has the express approval of the Legislature" (§ 57-20-1(1)). An owner must keep a rental "in a condition fit for human habitation" (§ 57-22-3(1)).

Elsewhere in Utah. Rental rules are local. Ask your city and county before the first lease.

What the LLC protects, and what it doesn't

Utah's LLC Act says "A member or manager is not personally liable, directly or indirectly, by way of contribution or otherwise, for a debt, obligation, or other liability of the limited liability company solely by reason of being or acting as a member or manager" (Utah Code § 16-20-304(1)(b)). Skipping formalities "is not a ground for imposing liability on a member or manager" (§ 16-20-304(2)). The Act moved from Title 48, chapter 3a to Title 16, chapter 20 on October 1, 2026, so older sources cite this section as § 48-3a-304.

  • Guarantees still bind you. A personal guarantee you sign for a lender is your own promise.
  • Your own acts are yours. The shield covers liability "solely by reason of" being a member or manager, so a repair you make yourself, or your own negligence, isn't covered by the LLC; ask a Utah attorney.
  • It isn't insurance. The LLC still needs coverage that pays claims and defense costs.

One LLC, or one per property?

Separate LLCs keep one property's judgment away from the others, at $59 to form and an $18 renewal for each LLC, plus a registered agent each. Utah also allows series LLCs: an operating agreement "may establish or provide for the establishment of a designated series of transferable interests having separate rights, powers, or duties with respect to specified property or obligations" (§ 16-20-1001(1)(a)). A series' debts are enforceable against that series' assets only if the operating agreement sets up the series and limits its liabilities, separate and distinct records are kept, its assets are "held and accounted for separately," and a notice of the limitation is in the certificate of organization (§ 16-20-1001(2)). For filings made since May 12, 2015, that notice must appear "immediately following the provision stating the name of the company" (§ 16-20-1002(1)(b)). A series that meets the conditions is treated as a separate entity to the extent the certificate says so and can hold title to property in its own name (§ 16-20-1001(3)). The Division lists a Domestic Series LLC as its own entity type. Local rules can cut against a series: St. George's checklist says properties owned under different names or entities need separate licenses and adds "This includes LLC Series licenses." Ask a Utah attorney, your lender and your title company before you put deeded real estate in a series. More: Should you have a separate LLC for each rental property?. Other states: All rental property LLC guides · Colorado · Arizona.

Form it where the property is, or register there

The simplest setup is a Utah LLC for Utah property. An LLC from another state "may not do business in this state until" it registers with the Division (§ 16-1a-503(1)), by delivering a foreign registration statement with a certificate of existence from its home state dated within 90 days (§ 16-1a-504). The fee is $59, and the renewal is the same $18 a year (Division fee schedule). Utah's list of activities that don't count as doing business includes "owning real property" (§ 16-1a-506(1)(m)), but renting the property out isn't on that list, and the section says it doesn't decide whether activity subjects an entity to service of process, taxation or regulation under other Utah laws (§ 16-1a-506(3)). Ask a Utah attorney before you rely on it. An unregistered foreign LLC doing business "may not maintain an action or proceeding in this state" until it registers, though failing to register doesn't impair the validity of its contracts or acts (§ 16-1a-503(2), (3)). The Division says foreign entities cannot reinstate, so keep a registered foreign LLC's renewals current.

What it costs the state

  • Certificate of Organization: $59 (Division fee schedule; Utah Code § 16-20-201)
  • Annual renewal: $18, which includes a $5 surcharge for the state's single sign-on portal; due by the last day of the month the LLC was formed, and fileable up to 60 days before (fee schedule; § 16-1a-212(5))
  • Late renewal fee: $10 (fee schedule)
  • Name reservation (optional): $22, holding the name for 120 calendar days; the Division says one isn't required before you file (fee schedule; § 16-1a-304; Division instructions)
  • Expedited processing (optional): $75 per filing. The Division says most filings process immediately and manual review takes 5 to 7 business days; renewals currently take 7 to 10
  • Amendment, including an online change: $17
  • Reinstatement of an expired LLC: $54, plus $18 for each year of missed renewals and a $10 delinquency fee
  • Foreign LLC registration: $59
  • Corporate minimum tax, only if the LLC is taxed as a corporation: $100 (Tax Commission)
  • EIN: free from the IRS

Compare services: LLC services compared.

Forming the LLC, in order

  1. Pick a name that contains "limited liability company" or "limited company," or the abbreviation "L.L.C.," "LLC," "L.C." or "LC," and none of "association," "corporation," "incorporated," "partnership" and similar terms (§ 16-1a-303(5)). It must also be distinguishable from names on the Division's records (§ 16-1a-302(1)).
  2. Name a registered agent with a street address in Utah (§§ 16-1a-402, 16-1a-403). The Division says you can add yourself as the registered agent to submit the filing.
  3. Create a UtahID, log in to the Business Registration System and file the Certificate of Organization ($59). It states the LLC's name, the street and mailing address of its principal office, and its registered agent, and the online flow asks for the principals. The LLC is formed when the certificate is effective and at least one person becomes a member (§ 16-20-201(2), (4)). If you plan to use a series, the notice goes in this certificate.
  4. Write an operating agreement. Utah's definition covers an agreement "whether oral, implied, in a record, or in any combination thereof" (§ 16-20-101), so put yours in writing.
  5. Get an EIN and open the LLC's bank account.
  6. Watch the registered agent's mailing address: the Division sends the renewal notice there.
  7. Register or license each rental with the city (above), and open Tax Commission sales and transient room tax accounts if you rent short term.

Forming the LLC doesn't move your deed

Putting your rental in the LLC takes a new deed, recorded with the recorder of the county where the property sits (Utah Code § 57-3-105(2)).

  • Record it. A recorded document imparts notice to all persons, and one that isn't recorded "is void as against any subsequent purchaser" who bought in good faith for valuable consideration and records first (§§ 57-3-102(1), 57-3-103).
  • Name the LLC and give its mailing address. A deed recorded after July 1, 2022 must name the grantees, recite "a mailing address to be used for assessment and taxation," and include a legal description by metes and bounds, government survey, or lot, block and plat (§ 57-3-105(3), (4)).
  • The county charges a flat recording fee, and I found no Utah tax on deeds. The recorder charges $40 per instrument, plus $2 for each description past ten, and counties of the second through sixth class add $5 unless they hold a balance in their recording-fee account (§ 17-71-407(3), (6)). Utah Code Title 59, Revenue and Taxation, has chapters for property, income, sales, fuel, transient room and other taxes but none for a tax on deeds. Ask your title company or recorder what else is due.
  • The 45% residential exemption is Utah's property-tax catch. Residential property gets "a 45% reduction in the value of the property" (§ 59-2-103(3)). The Tax Commission says a primary residence is a dwelling occupied as a primary domicile for at least 183 consecutive days a year by the owner-occupant or a full-time tenant, and an owner may claim it on each home that is a tenant's primary residence (§ 59-2-103(6)(b)(ii)). A rental owner files a declaration that the home will be a tenant's primary residence; the assessor may ask for the lease but may not ask the tenant (§ 59-2-103.5(5)). "Residential property" excludes property used for transient residential use (§ 59-2-102(35)(c)), and the Davis County Assessor says short-term rentals and vacant homes don't qualify.
  • A deed to the LLC is a change in ownership, so file with the county. Until the end of 2026 the county assessor generally sends the new owner a Residential Property Declaration to return within 90 days, unless the county requires an application instead (§ 59-2-103.5(1), (11)). From January 1, 2027 the owner must file an application, Form TC-473A; the Tax Commission says it applies to "deed transfers, trust transfers, or name updates," is due September 15, and can't be accepted late. If you live in the home, ask the assessor whether it keeps the exemption once an LLC holds title; the Tax Commission describes a primary residence as occupied by "owner-occupant(s)" or a "full-time tenant."
  • Water rights. If the property carries water rights, a deed may be submitted with a water rights addendum (§ 57-3-109), and the Division of Water Rights says "a water right owner shall submit a report of water right conveyance to the state engineer" to update its records.

Have a Utah attorney prepare the deed. After it records, update leases, rent payment instructions, deposits and insurance, and re-apply for city licenses in the LLC's name where the city requires it (St. George does).

Check the mortgage before you transfer

Federal law lets a lender enforce a due-on-sale clause, and a transfer to an LLC isn't one of the exceptions for 1–4 unit homes (12 U.S.C. § 1701j-3(d)). Fannie Mae allows a transfer to an LLC the borrower controls for loans it acquired on or after June 1, 2016 (Fannie Mae Servicing Guide D1-4.1-02). Ask your servicer in writing.

Insurance and taxes

Tell your insurer before title moves. The Utah Insurance Department warns that, depending on the policy, title insurance "may not provide coverage when you transfer your title into your business," so ask your title agent about your owner's policy too. For federal income tax, a single-member LLC is disregarded unless it elects corporate treatment (IRS), and the Tax Commission treats an entity that is disregarded for federal purposes as disregarded for pass-through withholding (Pub 68). Every corporation that files Utah's Form TC-20 pays a $100 minimum tax (Tax Commission), so ask a CPA before electing corporate treatment.

  • Long stays aren't taxed as lodging. Lodging stays of 30 consecutive days or longer are exempt from sales tax and transient room tax (Pub 56).
  • Short-term rentals are. Sales and transient room tax apply to stays of less than 30 consecutive days. Sales made outside a marketplace facilitator go on your own returns: register on the Taxpayer Access Point (form TC-69) for both a Sales and Use Tax account and a Transient Room Tax account. Returns are due the last day of the month after the filing period (Tax Commission).

Keeping each LLC in good standing

  • File the annual renewal ($18) by the last day of the month the LLC was formed; you may file up to 60 days early (§ 16-1a-212(5)). The Division sends the notice to the registered agent on file, and renewing online lets you update the address, purpose, registered agent and principals at no extra charge.
  • A late renewal adds a $10 fee. The Division may dissolve an LLC administratively if its annual report is more than 60 days past due, a fee goes unpaid for six months, or it has no registered agent for 60 consecutive days; the LLC has up to 60 days after notice to cure (§§ 16-1a-602, 16-1a-603(2)). A dissolved LLC may only wind up or apply for reinstatement (§ 16-1a-603(4)). The application must state that it has paid, or is on a payment plan for, what it owes the State Tax Commission (§ 16-1a-604(1)(e)).
  • Keep the registered agent current. Changes filed with a renewal cost nothing extra, and a separate change filing is $17 (fee schedule).
  • If you use a series, keep separate records and separately held assets for each one (§ 16-20-1001(2)).
  • Renew city licenses on their own clocks, and answer the county's exemption declaration or application by its deadline.

Before you file or transfer a property

  • Attorney: the deed, the series question, and foreign registration if the LLC is from another state
  • Servicer: is the transfer allowed?
  • Insurance and title agents: named insured, title coverage after the transfer
  • County assessor: the primary residential exemption declaration or application
  • CPA: sales and transient room tax, federal treatment
  • City: rental or nightly rental license in the LLC's name
  • Calendar: the LLC's formation month; September 15 for the exemption application; city renewals; tax return due dates

Form it with Corpus

Corpus prepares and files your Certificate of Organization and includes the first year of registered-agent service. The Utah page shows the current price. Corpus isn't a law firm: the deed, county property-tax filings, the loan, taxes and city licenses are separate steps.

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Sources

Last checked 2026-10-24. Corpus is not a law firm and does not provide legal or tax advice.