Utah has a structured approach to business taxation that applies differently depending on the type of entity. Corporations, partnerships, and limited liability entities all face distinct requirements when it comes to filing, estimated payments, penalties, and extensions.
This blog breaks down Utah’s tax framework, focusing on C corporations, S corporations, partnerships, and LLCs. It explains filing obligations, due dates, penalties for late payment, and how taxes flow through to owners. With this clarity, businesses can better understand their responsibilities and avoid penalties.
C Corporation Income and Franchise Tax
C corporations conducting business in Utah, or deriving income from Utah sources, are required to file a corporate income tax return with the Utah State Tax Commission. This obligation applies to every C corporation:
- Incorporated in Utah (domestic entities)
- Qualified in Utah (foreign entities)
- Doing business in Utah, regardless of formal qualification
Utah requires each corporation to pay a minimum franchise tax of USD 100, whether or not the corporation actively conducts business.
Due Dates: Returns are due on the 15th day of the fourth month following the close of the taxable year. If the due date falls on a weekend or holiday, the deadline shifts to the next business day.
Extension of Time: Corporations are automatically allowed an extension of up to 6 months from the original due date. No separate extension form is required. Importantly, this is only an extension to file, not an extension to pay tax owed.
Filing Requirements: C corporations must use Form TC-20, Corporation Franchise and Income Tax Return, to report income, deductions, credits, and tax liability.
Estimated Tax Payments: Corporations with an estimated liability of USD 3,000 or more in the current or prior year must make quarterly estimated payments. These payments are due on the 15th day of the fourth, sixth, ninth, and twelfth months of the reporting year.
Late Filing Penalties: If the return is filed late, penalties are assessed as follows:
| Days Late | Penalty |
| 1–5 | Greater of USD 20 or 2% of unpaid tax |
| 6–15 | Greater of USD 20 or 5% of unpaid tax |
| 16+ | Greater of USD 20 or 10% of unpaid tax |
Late Payment Penalties: If tax is not paid in full by the due date:
| Days Late | Penalty |
| 91–95 | Greater of USD 20 or 2% of unpaid tax |
| 96–105 | Greater of USD 20 or 5% of unpaid tax |
| 106+ | Greater of USD 20 or 10% of unpaid tax |
Interest and Penalty Rates: For 2024, unpaid taxes accrue 7% interest annually. Penalty structures follow the tables above.
S Corporation Income Tax
Unlike C corporations, S corporations are not subject to a separate state-level income tax in Utah. Instead, income, deductions, and credits flow through to the shareholders, who report their share on their individual tax returns. There is no minimum tax for S corporations.
Filing Requirements: S corporations must file Form TC-20S. Each shareholder receives a Schedule K-1 from the corporation, which details their share of income, deductions, and credits. Shareholders use this information in their individual Utah tax filings.
Due Dates: The filing deadline is the 15th day of the fourth month following the close of the corporation’s tax year, with extensions granted if the date falls on a weekend or holiday.
Extension of Time: Similar to C corporations, S corporations automatically receive an extension of up to 6 months to file. This does not extend the time to pay tax.
Estimated Tax Payments: S corporations with USD 3,000 or more in tax liability (current or prior year) must make quarterly estimated payments, due on the 15th day of the fourth, sixth, ninth, and twelfth months.
Penalties and Interest: The same penalty and interest rules that apply to C corporations also apply to S corporations.
Partnership, LLC and LLP Income Tax Return
Partnerships, LLCs, and LLPs are treated differently. Utah does not impose a separate state-level income tax on these entities. Instead, income, deductions, and credits flow through to the members or partners, who then report their share on individual tax returns.
Filing Requirements: Partnerships must file Form TC-65. Each member receives a Schedule K-1, which details their portion of income, deductions, and credits.
Due Dates: Returns are due on the 15th day of the fourth month following the end of the taxable year. If the due date falls on a weekend or holiday, the deadline shifts to the next business day.
Extension of Time: Partnerships and LLCs are automatically granted an extension of up to 5 months from the original due date. Again, this extension only applies to filing, not payment of tax.
Penalty and Interest Rates: The penalties and interest for partnerships, LLCs, and LLPs mirror those applied to C corporations.
Conclusion
Utah’s taxation system is consistent in its application across business entities but varies in structure depending on the type. C corporations face direct corporate income and franchise taxes, with minimum tax obligations, estimated payments, and strict penalty schedules. S corporations and partnerships/LLCs benefit from pass-through taxation, with no separate state-level income tax, but must still meet filing deadlines and estimated payment requirements.
Extensions provide flexibility for filing, but they do not defer tax payments, making timely payments critical. The penalty and interest structures underline Utah’s firm stance on compliance.
For businesses operating in Utah, understanding these rules is essential to avoid penalties and ensure smooth financial operations. Whether structured as a corporation or a pass-through entity, each business must carefully meet its obligations under Utah tax law.
