The Businesses which are running in the state of Utah are either situated in Utah or earning profits in different forms. These forms are:
1) Business trust.
2) Collection agency.
3) Corporation.
4) Professional Corporation.
5) Doing Business as – DBA.
6) Limited Liability Company – LLC.
7) Limited Liability Partnership – LLP.
Business Trust
A business trust is accordance between two parties. This accordance allows one party, which is called is trustee, to control, maintain, and run assets or property on behalf of another party, which is called as the Beneficiary. In a business trust, a trustee maintains the business and controls the transactions for the benefit of the beneficiaries of the business.
Trusts usually work in association with estate planning, but they can also work on business operations. As the owner of a small business you can run your business in a trust instead of doing business as a business entity such as a limited liability company – LLC or corporation. Business trusts have different pros and cons in their running.
Pros and cons of a Business Trust
Business trusts offer following advantages;
1) Avoidance of probate upon the death of the business owner.
2) Reduction or elimination of estate taxes.
3) Running of business in case of death or incapability of business owner.
4) Business assets are separate from personal assets.
5) Greater privacy then LLC.
6) Assets are protected from creditors.
7) Formation process is simpler than traditional businesses.
It has the following cons;
1) It requires ongoing maintenance cost.
2) It Challenges legal regulations.
Collection Agency
A collection agency is an organization that is used by granters or bankers to recover funds that are not paid by defaulter accounts. A banker hires a collection agency when it has failed in multiple attempts of collecting its assets. A banker may hire a collection agency or may have an internal department for collection of debts from defaulting members based on the capacity of the organization.
A collection agency tries different strategies to recover funds. may call the defaulter’s personal and office telephones. It sends mails to the defaulter with late payment notices. contacts defaulter’s family friends or neighbors to gain the defaulter’s contact or address information in case of any change. The agents of the agency visit the defaulter’s house.
Corporation
A corporation is a legal organization that is separated and unique from its owners. Legally, corporations have many of the same rights and responsibilities as individuals do. The can make contracts, lend and finance money, sue and be sued, recruit employees, own assets and pay taxes. A unique property of a corporation is its limited liability.
The shareholders of a corporation earn profits by dividends and stock appreciation but they are not personally eligible for the company’s debts. The ownership of a shareholder in a corporation depends upon its share in the business entity. Almost all large businesses work as corporations, such as Microsoft Corporation and The Coca-Cola Company.
Professional corporation
A professional corporation or a professional service corporation is a unique corporate structure. It consists of a specialized group of professionals. An S – type corporation or a C – type corporation is shall be formed by specific professionals which include physicians, attorneys, engineers or accountants. There are specific legal requirements that are required for these types of business institutions
Before establishing a professional corporation, the laws of the state in which it is formed are checked properly. Most of the states apply limitations to the type of people creating the professional corporation. In general these organizations can only be made by accountants, engineers, physicians and other healthcare professionals, lawyers, veterinarians, and social workers.
Doing Business as – DBA
Doing business under a DBA (doing business as) name may be a good decision for your company. DBA means using a trade name versus using a legal name for your business. Every business should have a “legal” or a “true” name. If the business is a sole proprietorship or a partnership, then the legal name is the name of business owner or owners.
Any individual or organization can also decide to run business under a name that is distinct from its legal name by applying for a DBA. The Abbreviation of DBA is “Doing business as”. A DBA name is also called as a “trade name”, “assumed name”, or a “fictitious business name”.
Limited Liability Company – LLC
It is not easy to establish a limited liability company with Become assets. This type of business organization protects owners from liability for company debts. A limited liability company – LLC is a business organization that keeps the assets of its owners safe from the lawsuits and creditors concerned with organization’s business debts.
Different states give different permissions to limited liability companies. This is because the rules and regulations applied to them vary from state to state. LLC owners are generally called members. Many states do not apply restrictions to ownership, which means that anyone can be an LLC member.
Limited Liability Partnership – LLP
Limited liability partnerships are different from traditional businesses. They are also different from the limited company structure. Their rules and regulations include various pieces of legislation including the limited liability partnership regulations, 2001.
A limited liability partnership is a separate legal organization from its partners. The partners are only liable for the amount of money they invest, in addition to any personal guarantees. There should be at least two members to make a limited liability partnership. The number of members is not limited.
Conclusion
When you are eligible to run your business in Utah, it is essential to ensure that your name can be used in the state. Searching for business organizations in Utah will help you in finding out what is already taken in Utah and what is available for use.