Should I form a Utah Corporation?A corporation, chartered by the state in which it is headquartered, is considered by law to be a unique entity, separate and apart from those who own it. A corporation can be taxed; it can be sued; it can enter into contractual agreements. The owners of a corporation are its shareholders. The shareholders elect a board of directors to oversee the major policies and decisions. The corporation has a life of its own and does not dissolve when ownership changes.
Advantages and Disadvantages of a Utah Corporation
Advantages of a Corporation
Disadvantages of a Corporation
Federal Tax Forms for Regular or "C" Corporations
Utah's 2008 Business Tax Climate Ranks 17thUtah ranks 17th in the nation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states ranked as follows: Idaho (31st), Nevada (3rd), Arizona (25th), New Mexico (23rd), Colorado (13th) and Wyoming (1st).
Utah's Individual Income Tax SystemUtah's personal income tax system consists of six brackets with top rate of 6.98% kicking in at an income level of $5,500. This top rate ranks the state 14th highest among states levying personal income taxes. Utah also offers taxpayers the option of paying a 5.35% flat tax. Utah's 2005 individual income tax collections were $774 per person, which ranked 24th highest nationally.
Utah's Corporate Income Tax SystemUtah's corporate tax structure consists of a flat rate of 5% on all corporate income. Among states levying corporate income taxes, Utah's rate ranks 41st highest nationally. In 2006, state-level corporate tax collections (excluding local taxes) were $136.52 per capita, which ranked 29th highest nationally.
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