How to Syndicate an Apartment Deal in Utah: A Sponsor Guide
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To syndicate an apartment deal in Utah, you form the deal LLC (or register an outside LLC with the Utah Division of Corporations), raise under Rule 506(b) or 506(c), and file a Form D notice through NASAA's EFD within 15 days of your first Utah sale. DoorRaise's state data lists the fee as $0 for an offering up to $500,000 and $100 above that, with a $500 fee instead if the notice is late. On the tax side, Utah gives apartments a real advantage: units rented as someone's primary residence get the state's 45% residential exemption from property tax.
This is the Utah version of our general syndication guide. It covers what changes when the building, the investors or both are in Utah. It is general information, not legal advice.
What is the Utah Rule 506 notice filing?
Utah treats Rule 506 interests as federal covered securities and asks for a notice: a copy of the SEC Form D and the fee, filed through the NASAA Electronic Filing Depository (EFD) for the Utah Division of Securities. DoorRaise's state data, from NASAA's fee schedule, lists the fee as $0 for an offering up to $500,000 and $100 above, and a $500 fee instead of the regular fee after 15 days. Most apartment raises are above $500,000, so plan on $100 and file on time. EFD shows the exact amount before you pay, and that amount wins. See blue sky notice filings and blue sky fees by state.
How do you form the deal LLC in Utah?
A Utah LLC is formed by filing a Certificate of Organization with the Utah Division of Corporations and Commercial Code; the published fee is $59. Each year the LLC files a renewal, with a small fee, by the end of its anniversary month. An LLC formed elsewhere that will own Utah property registers as a foreign LLC. Confirm fees on the Division of Corporations' site before you file. See forming an LLC for a syndication and foreign qualification in the property state.
What Utah landlord and tenant rules should a sponsor know?
Utah's Fit Premises Act (Title 57, Chapter 22) sets the landlord's repair duties and the tenant's remedies, and the eviction rules are in Title 78B, Chapter 6. For unpaid rent, a landlord serves a 3 business day pay or quit notice before filing an unlawful detainer case. A landlord must return the deposit, or send a written list of deductions, within 30 days after the tenancy ends, or within 15 days after receiving a forwarding address if that is later. Utah law preempts local rent control. Your property manager should use Utah notices and follow the timelines exactly.
How does Utah property tax work for an apartment building?
Utah county assessors value property each year at fair market value. Primary residential property gets a 45% exemption, so it is taxed on 55% of its value, and the exemption covers rental units that are someone's primary residence, which includes most long term apartments. Short term rentals do not qualify. Owners may be asked to sign a statement that units are used as primary residences. Underwrite taxes from your purchase price times 55% and the local rate, and confirm with the county that the exemption applies. See property tax reassessment in apartment underwriting and short term rental units in an apartment syndication.
Does Utah tax the deal LLC or its investors?
Utah has a flat income tax and taxes income earned in the state, and a pass through entity may have to withhold for nonresident owners. Utah has no real estate transfer tax, which keeps closing costs lower. Ask your CPA early; the investor side is in state tax returns for nonresident syndication investors.
How DoorRaise fits in
DoorRaise helps sponsors raise equity for apartment buildings from their friends and followers under Rule 506(b) or 506(c), and verifies that every investor is accredited before they sign. Investors fund by wire into the deal's escrow account at Enterprise Bank & Trust. By default DoorRaise files the notice in the property's state; on new deals, the first investor from another state pays that state's filing fee by card when they sign, later investors from that state pay nothing, and the sponsor never fronts it. Sponsors pay a $1,500 setup fee (non-refundable) and a flat $5,000 a year administration fee; see pricing or how it works.
FAQ
How much is the Utah Rule 506 notice fee?
$0 for an offering up to $500,000 and $100 above, per NASAA's fee schedule. EFD shows the final amount before you pay.
What if the Utah notice is late?
DoorRaise's data lists a $500 fee instead of the regular fee after 15 days.
Do Utah apartments get the residential exemption?
Units rented as primary residences generally do, so they are taxed on 55% of value. Short term rentals do not.
Does Utah have a real estate transfer tax?
No.
Sources
- Utah Division of Securities
- NASAA: Form D fee schedule
- Utah Division of Corporations and Commercial Code
- Utah Code, Title 57, Chapter 22: Utah Fit Premises Act
- Utah State Tax Commission: property tax
This article is general information as of November 2026, not legal, tax or investment advice. State laws and fees change: confirm with the state agency and your own attorney before you file. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.