This state does not have a corporate franchise tax.
The following guidelines provide background information on the most common types of filings and the related exemptions in Utah.
In this state, organizations are generally required to register prior to soliciting for donations. However, this requirement has a religious exemption. Religious organizations must apply for this exemption; the religious organization exemption is not automatic. More information about registration and exemption is available on the Division of Consumer Protection Bureau website.
In this state, organizations that are required to register have the option of registering through the Unified Registration Statement, which is a standardized charitable registration accepted in many states. However, the state also has an online filing system, and using that system may be more efficient than completing and mailing the URS manually. Additionally, creating an online profile can help auto-populate future annual reports, saving an organization time in the coming years.
Note that this jurisdiction requires organizations incorporated in other states to appoint a registered agent in Utah. This can be done through a commercial service or by appointing a person or entity located in Utah who is a supporter of your organization.
This state does not require organizations to post specific language when conducting charitable solicitations. Utah Code § 13-22-13 does prohibit, among other things, “any untrue statement of material fact” in connection with a solicitation.
Depending on the type and volume of activities an organization has in this state, the organization may also need to register as an out-of-state business (sometimes called a “foreign business”) with the secretary of state or another state agency.
These foreign business registration requirements are separate from the charitable registration. Not every out-of-state organization needs to register. An attorney can assist the organization in determining whether its connections with this state are significant enough to trigger the foreign business registration requirement.
Examples of activities that might trigger this requirement include having employees physically located in the state, conducting programs in the state, and having an office in the state.
In this state, organizations that have received recognition of federal income tax exemption are also exempt from the state income tax. However, to receive this exemption, organizations must apply. The exemption is not automatic. To apply organizations can use Form TC-161. Note that, although an organization may be exempt, if it has unrelated business taxable income (“UBTI”) that is subject to federal taxation, that UBTI may be subject to state income tax. [See Utah Code § 59-7-801 and 802.]
It is also important to consider whether applying for sales and use tax and property tax exemptions would be appropriate for your organization. More information regarding sales and use tax is available at the Utah State Tax Commission website. Information about property tax exemption can be found on the local county website, for example, the Salt Lake City County website. An accountant or attorney can provide answers to specific questions regarding your organization’s eligibility for exemption.
This resource contains general educational information related to legal concepts, but this information does not constitute legal advice. Anyone seeking legal advice is strongly encouraged to consult with a licensed attorney regarding any of the matters discussed herein. Although licensed attorneys work with Napa Legal, Napa Legal is not a law firm and does not undertake legal representation on behalf of any clients. Further, no licensed attorney working with or on behalf of Napa Legal agrees to undertake legal representation on behalf of any client unless the terms of such representation are set forth in a separate, written representation agreement.