Utah · LLC tax election
Utah LLC: S corp or C corp?
Utah drops its tax rate again for 2026, and it treats an S corp very differently from a C corp.
See Utah at a glanceShort answer
In Utah, an LLC taxed as an S corp pays no Utah income tax at the company level and no minimum tax. A C corp pays 4.45% of Utah taxable income for 2026 with a $100 minimum. Your S corp profit is taxed to you on your personal Utah return, so the S election mainly saves you the corporate layer.
Last checked .Utah at a glance
What is different about Utah?
Utah's rule is simple to state and easy to miss: the S corporation itself pays nothing. The Tax Commission says an S corporation is not subject to Utah income tax and the $100 minimum tax does not apply to it. Shareholders pay on their own share instead. A C corp does pay, and the rate just fell. S.B. 60 sets the corporate franchise and income tax at 4.45% for taxable years beginning on or after January 1, 2026, with a $100 minimum. The same bill sets the individual rate at 4.45%, so Utah taxes the corporation and the owner at the same flat rate. The real cost of choosing C corp here is the second layer of tax on dividends.
Does Utah recognize a federal S corp election?
Utah follows your federal S election and asks for no separate state form. The S corporation files TC-20S for as long as the federal election is in effect. The Tax Commission says an S corporation is not subject to Utah income tax, and the minimum tax does not apply to it. Shareholders owe Utah income tax on their share. The S corporation must withhold Utah tax on nonresident individual shareholders and on resident or nonresident business, estate or trust shareholders.
Does my LLC need a separate Utah election or form?
Utah has no separate S election form; an S corporation with a federal election files TC-20S.2
What does Utah tax an S corp or LLC at the entity level?
Is a Utah LLC taxed as a C corp ever better?
A Utah C corp pays 4.45% of Utah taxable income for taxable years beginning on or after January 1, 2026, and never less than the $100 minimum tax. The rate came down from 4.5% under S.B. 60, effective May 6, 2026. The minimum tax applies even if the corporation earned nothing. Because the same 4.45% rate applies to individuals, dividends paid out of a C corp are taxed once at the company and again to you.
Run your Utah numbers
In Utah the S election saves the corporate-level 4.45% and the $100 minimum, since an S corporation is not subject to either. That is a real state saving, though it only matters if you would otherwise leave profit inside a C corp. If you pull profit out anyway, you pay the 4.45% individual rate in both cases. Weigh the $100 and the corporate layer against the extra payroll and TC-20S filing work.
Result
How much would a Utah LLC owner save as an S corp?
| Taxed as | At $80,000 profit | At $150,000 profit |
|---|---|---|
| Default LLC | $11,304self-employment tax $11,304 | $21,194self-employment tax $21,194 |
| S corp | $9,344payroll tax $7,344 + Utah S corp tax $0 + $2,000 payroll and prep | $15,770payroll tax $13,770 + Utah S corp tax $0 + $2,000 payroll and prep |
| C corp | $17,189payroll tax $7,344 + Utah tax $1,424 + federal $6,421 + $2,000 payroll and prep | $30,479payroll tax $13,770 + Utah tax $2,670 + federal $12,039 + $2,000 payroll and prep |
Assumes a 60% salary8 and a single filer. Income tax is left out. C corp dividends are taxed again. We could not confirm on an official Utah source whether a default LLC pays an entity-level tax, so none is shown.
When is the Form 2553 deadline for a Utah LLC, and what if I miss it?
Late relief: federal steps, deadline guide.
What to do next
How to start one, or have us form it from $123.75.
Registered agent $74.25/yr, annual report.
LLC vs S corp guide, election deadline, Form 2553 filed for $165.
More on Utah: How to start a Utah LLC · How to start a Utah corporation · Utah LLC cost · Utah annual report · Annual report late fees by state
File the S-Corp Election for your Utah LLC
We file Form 2553 for a flat $165.
Get the S-Corp ElectionCommon questions
What is the Utah corporate income tax rate for 2026?
4.45% of Utah taxable income, with a $100 minimum tax, for taxable years beginning on or after January 1, 2026. S.B. 60 lowered it from 4.5% and took effect May 6, 2026, with retrospective operation to January 1.
Does Utah tax S corporations?
Not at the company level. The Tax Commission says an S corporation is not subject to Utah income tax. Shareholders are liable for Utah income tax in their separate capacities, and the S corporation withholds for certain shareholders.
Does the Utah $100 minimum tax apply to S corps?
No. The Tax Commission says the minimum tax does not apply to S corporations. It does apply to C corporations, which owe at least $100 under S.B. 60.
Does Utah have a separate S election form?
No. An S corporation files form TC-20S as long as its federal election under IRC section 1362(a) remains in effect. You do not file a separate Utah election.
What does a Utah S corp have to withhold?
It must withhold Utah tax on all nonresident individual shareholders and on all resident or nonresident business, estate or trust shareholders. This applies even to a resident shareholder that is itself a business.
Sources 9 links, checked Nov 6, 2026
- Utah follows a valid federal S election as long as it stays in effect; the S corporation files form TC-20S. tax.utah.gov, checked Nov 6, 2026
- Utah has no separate S election form; an S corporation with a federal election files TC-20S. tax.utah.gov, checked Nov 6, 2026
- A Utah S corporation is not subject to Utah income tax, and the $100 minimum tax does not apply to it. files.tax.utah.gov, checked Nov 6, 2026
- A Utah C corporation pays 4.45% of Utah taxable income for taxable years beginning on or after January 1, 2026, with a $100 minimum tax; S.B. 60 lowered the rate from 4.5% and takes effect May 6, 2026. le.utah.gov, checked Nov 6, 2026
- Utah taxes a resident individual's state taxable income at a flat 4.45% under S.B. 60, which lowers the rate from 4.5%. le.utah.gov, checked Nov 6, 2026
- An S corporation must withhold Utah tax on all nonresident individual pass-through entity taxpayers and on all resident or nonresident business, estate or trust pass-through entity taxpayers. files.tax.utah.gov, checked Nov 6, 2026
- IRS: Form 1120 instructions, C corp rate irs.gov, checked Nov 6, 2026
- IRS: S corp reasonable compensation irs.gov, checked Nov 6, 2026
- IRS: Form 2553 instructions irs.gov, checked Nov 6, 2026
Last verified Nov 6, 2026.
This page explains the rules; it is not tax advice. Run your numbers with a CPA or enrolled agent before you elect.
Last verified Nov 6, 2026.