How to Start an LLC in Idaho | 2024 Guide

Start a LLC in Idaho

How to Start an LLC in Idaho: If you’re looking to launch a business in Idaho, starting a Limited Liability Company (LLC) may be the right choice for you. An LLC provides personal liability protection for its owners while giving them flexibility in managing and taxing the business. This guide provides a step-by-step process for starting an LLC in Idaho. From choosing a unique name to registering with the state and obtaining necessary licenses and permits, Webinarcare Editorial Team will walk you through setting up your new business entity. So grab a pen and paper, and let’s get started!

What is a Limited Liability Company?

A Limited Liability Company (LLC) is a type of business entity that combines a corporation’s limited liability protection with a partnership’s tax benefits. LLCs are popular among small business owners for their flexibility and ease of formation. In Idaho, an LLC must have a unique name and file Certificate of Organization with the Secretary of State. Depending on their business needs, LLCs may also elect to be taxed as a corporation or an S-corp. Owners of an LLC, called members, are not personally liable for the company’s debts and losses, and the company’s profits and losses are passed through to the member’s personal tax returns. This makes an LLC an attractive option for those seeking personal liability protection and simplified taxation.

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Steps on How to Start an LLC in Idaho

To form an LLC for your business, you must follow the guidelines that include naming your LLC, hiring a Registered Agent, filing your Certificate of Organization, creating your LLC operating agreement, getting an employer identification number, opening a bank account and getting business licenses and permits.

Step 1: Name your LLC in Idaho

After you have decided on the idea to form an LLC in Idaho, deciding the name for your LLC is significant. There is a complete guide on LLC name guidelines for you to have a proper LLC business name. Here are some regulations you must follow while naming your LLC,

  • The name should not be confused with a government entity.
  • The name should be unique.
  • The name should be available to use.
  • Any other business does not use the name.
  • The new name must include “LLC” if it is a limited liability company.

In Idaho, if you do not wish to file your LLC right away but want to hold the name that you have decided on, then you can reserve your LLC name for 4 months. You must file a name reservation application in Idaho Secretary of State to keep the name.

Recommended: We recommend a professional service that can offer you unlimited name search, trademark and copyright registration at a reasonable price. We recommend using –

LegalZoom($0 + State Fees for LLC Formation)

You can register your business under a different legal name if your preferred name isn’t available. Once you have chosen a name, you can submit an application for filing Idaho DBA (doing business as). In this manner, you can choose any name you desire for your business. A DBA allows a company to operate under the name of the person or entity who owns it. If you have decided to file for a DBA, you can file it in three methods, online, by mail, and in person filing. However, before filing a DBA, you should know that you need to renew your DBA from up to Indefinite, which costs around $25 Filing Fee and $20 Additional processing fee if filing a hard copy by mail or in-person.

Step 2: Hire a Registered Agent in Idaho

Hiring a Registered Agent in Idaho is a must since a Registered Agent is a person or business entity responsible for receiving important legal documents on behalf of your Idaho LLC. Most states require you to designate a Registered Agent when forming your LLC.

The qualifications of a Registered Agent vary depending on the jurisdiction. Still, generally, a Registered Agent must meet the following criteria:

  • Availability: A Registered Agent must be available during regular business hours to receive and process legal documents and official correspondence.
  • Physical Address: A Registered Agent must have a physical street address within the state where the LLC is registered. This address, known as the registered office, cannot be a P.O. Box.
  • Residency or Authorization: For individuals serving as Registered Agent, they must be residents of the Idaho where the LLC was formed. A business entity acting as a Registered Agent must be authorized to do business within that state.
  • Age: A Registered Agent must be at least 18 years old.
  • Good standing: A Registered Agent should not have any legal or financial issues that impede their ability to fulfill their duties.

Choosing a reliable and responsible Registered Agent is essential, as failure to receive and respond to legal documents can seriously affect your business. Some businesses use professional Registered Agent services to ensure compliance and proper handling of legal matters.

However, if you would like to have an easier process in filing the necessary documents, you can get Idaho Registered Agent Services.

Step 3: File your Certificate of Organization in Idaho

The Certificate of Organization for an LLC is an important document to start your limited liability company (LLC). Idaho Certificate of Organization is a simple document that contains the business name and address as well as the name and address of the person who received lawsuits on behalf of the organization.

Here are the guidelines and specific requirements in filing your Certificate of Organization in Idaho.

1. Obtain the Necessary Forms: Visit the Idaho’s business filing office website, usually the Idaho Secretary of State’s office, to download the required forms or file online.

2. Provide the Required Information: Fill in the necessary details in the form, which typically include:

  • The name of your LLC (must include an LLC designator such as “LLC,” “L.L.C.,” or “Limited Liability Company”)
  • The purpose of your LLC (a general statement or specific business activities)
  • The address of your LLC’s principal place of business
  • The name and address of your registered agent (the person or business entity responsible for receiving legal documents on behalf of your LLC)
  • The management structure of your LLC (member-managed or manager-managed)
  • The duration of your LLC, if not perpetual
  • The names and addresses of the LLC’s organizers or members

3. Sign and File the Form: Submit the completed form in the {state} state office, either by mail, in person, or online. You may mail it at Office of the Secretary of State, 450 N 4th Street, P.O. Box 83720, Boise, ID 83720-0080.

4. Pay the Filing Fee: When you submit your Certificate of Organization, you’ll need to pay a filing fee of $100. Make sure to check and include the correct payment with your submission.

5. Receive Confirmation: After your Certificate of Organization have been filed and processed, you’ll receive a confirmation from Idaho, typically a stamped and approved copy of the document or a Certificate of Organization.

Recommended: Filing formation papers is easy and hassle-free if you hire a professional service. We recommend using –

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Once you have successfully filed your Certificate of Organization and it has been approved, your Idaho LLC is officially formed. However, remember to complete additional steps, such as creating an Operating Agreement, obtaining an EIN, and registering for any required licenses and permits.

Step 4: Create Your Idaho Operating Agreement

An operating agreement is a document that contains all of your company’s organizational details. Drafting an operating agreement in most states is not required. Yet, having one as an internal document is strongly advised. An operating agreement includes information like-

  • About Business
  • Members and management
  • Capital contribution
  • Profit Distribution
  • Change of membership
  • Dissolution

To understand how an operating agreement works, you should check out how to create an operating agreement in Idaho.

Recommended: Get oprating agreement drafts ready on your table with a help of a professional service. We recommend using –

LegalZoom($0 + State Fee for LLC formation)

Step 5: Get an EIN

After documenting the operating agreement, you should get or request an Employer Identification Number (EIN) in Idaho. An EIN will serve as the tax ID for your professional corporation. EIN can be obtained from the Internal Revenue Service (IRS). It is a 9-digit number similar to Social Security Number. EIN, however, is distinct from SSN. It is only used for business-related activities, particularly for submitting general taxes. The form must be completed and uploaded to the IRS website.

The application of an EIN in Idaho can be through the following:

  • Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that the Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

In obtaining an EIN for your LLC, you should be aware to ensure that your LLC is eligible for an EIN. You need an EIN if you have employees, operate as a corporation or partnership, or meet other specific IRS criteria. Before applying, gather the required information, including your LLC’s name, mailing address, and the responsible party’s Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). Also, you can apply for an EIN through various methods, including online, by fax, mail, or telephone (for international applicants).

Recommended: Professional services have the EIN included in their LLC formation package. We recommend using –

LegalZoom($0 + State Fee for LLC formation)

Step 6: Open a Bank Account and Prepare for Taxes

After you have filed for and received your Employer Identification Number, you should open a bank account because you will use this account for yourself, your clients, and your employees.

Your business dealings in Idaho might be simpler with a US business bank account because it boosts your company’s legitimacy and liquidity. Most banks demand an EIN to create a business bank account for firms other than sole proprietorships. Also, having an EIN makes tax preparation easier. You can anticipate paying employment and corporate taxes with Idaho LLC.

Opening a bank account is necessary for Idaho business. If you are still wondering where to open an account in your Idaho, you should check the Best Bank for Small Business in Idaho.

Step 7: Get a Business and License Permit

You must get a business license in Idaho before establishing your LLC. A business license is a legal document granted by a state government body that permits you to conduct business within the area under its jurisdiction. The price of business licenses and permits in Idaho ranges from $50 – $300. If there is a requirement for a specific license or city-based permit, you must inquire with the Idaho Secretary of State.

Cost to Form an LLC in Idaho

Even if you have a business name and structure in mind, you should consider whether you can afford the costs of forming an LLC in Idaho. Certificate of Organization costs around $100. The initial filing fee is $120 (by mail and $100 online), and the annual fee is $0.

If you forget to pay the annual fee for your Idaho LLC, you will have a penalty of $25. However, you can check the Idaho LLC Cost for additional information.

Advantages of Creating Idaho LLC

Even though some people decide on what to do with their businesses, some choose to put it in their own individual name, while others still choose to set it up via LLC in Idaho. Important benefits will help you set up an LLC in Idaho.

  • Pass-Through Taxation: The pass-through structure will make the company not pay twice the tax. Most start-ups and entrepreneurs in Idaho apply for an LLC because of this structure. Pass-through taxation refers to how income and losses from an LLC (Limited Liability Company) are passed through to its members (owners) for tax purposes rather than being taxed at the business entity level. This means the LLC does not pay federal income taxes; the members’ profits and losses are allocated based on their interests. Each member then reports their share of the LLC’s income or losses on their personal tax returns and pays taxes at their individual tax rates.
  • Ownership Flexibility: If you need sole and primary control over your company’s operations, a sole proprietorship will allow you to do so. If you apply for an LLC in Idaho with flexibility, you will have default rules set by law and need an operating agreement.
  • Personal Liability Protection: Personal Liability Protection protects your business from damage, debts, or legal obligations. In personal liability protection, the company’s profits and earnings will stay as is even if your company is about to be sued. This protection of having an LLC in Idaho can also be extended to the company’s properties and assets. Many start-up companies will benefit from this since most are starting to build a company. Even if liability exists, the LLC in Idaho will protect its assets.

FAQs

What is an LLC?
LLC stands for Limited Liability Company, a business structure that separates a company’s liabilities from the personal assets of its owners.
How do I form an LLC in Idaho?
To form an LLC in Idaho, you need to file articles of organization with the Idaho Secretary of State.
What are the requirements for forming an LLC in Idaho?
To form an LLC in Idaho, you need to have a registered agent, a unique business name, and file articles of organization.
What are the fees for creating an LLC in Idaho?
The filing fee for creating an LLC in Idaho is $100.
What is a registered agent?
A registered agent is a person or company that is responsible for accepting official documents and correspondence on behalf of your LLC.
Can I serve as my LLC’s registered agent in Idaho?
Yes, you can serve as the registered agent for your LLC in Idaho as long as you have a physical address in Idaho.
What is the benefit of having a registered agent for my LLC in Idaho?
A registered agent can forward important legal documents and business correspondence to you, ensuring that you are always up-to-date on your business’s legal requirements.
Can a foreign entity form an LLC in Idaho?
Yes, a foreign entity can form an LLC in Idaho by qualifying to do business in the state.
What is the process for qualifying a foreign entity to do business in Idaho?
To qualify a foreign entity to do business in Idaho, you need to file a foreign registration statement and pay the applicable fees.
What tax forms does an Idaho LLC need to file?
An Idaho LLC needs to file Form 62 with the Idaho State Tax Commission.
Does an Idaho LLC need to file an annual report?
Yes, Idaho LLCs need to file an annual report with the Idaho Secretary of State.
What is the fee for filing an annual report in Idaho?
The fee for filing an annual report in Idaho is $0.
Do I need a business license to start an LLC in Idaho?
It depends on the type of business you are starting. Some industries require specialized licenses or permits.
What industries require a license or permit in Idaho?
Industries that require a license or permit in Idaho include construction, transportation, and healthcare.
Can I name my Idaho LLC anything I want?
No, the name of your Idaho LLC must be unique and can’t deceive the public.
How can I check if my desired Idaho LLC name is available?
You can search for your desired Idaho LLC name on the Idaho Secretary of State’s website.
Can my Idaho LLC have a DBA name?
Yes, your Idaho LLC can have a DBA (Doing Business As) name as long as you register it with the Idaho Secretary of State.
Can I change the business name attached to my Idaho LLC?
Yes, you can change the business name attached to your Idaho LLC by filing Articles of Amendment with the Idaho Secretary of State.
What is a member-managed LLC?
A member-managed LLC is an LLC that has its owners (members) managing the company.
What is a manager-managed LLC?
A manager-managed LLC is an LLC where a manager is put in place to run the company instead of having its owners (members) managing it.
Can a non-US resident start an LLC in Idaho?
Yes, as long as you have a registered agent located in Idaho.
Can an Idaho LLC have a single member?
Yes, an Idaho LLC can have a single member.
Can an LLC be taxed as an S-corporation in Idaho?
Yes, an LLC can choose to be taxed as an S-corporation in Idaho as long as it meets the requirements.
What is a Operating Agreement for an LLC?
An LLC Operating Agreement is a legal document that outlines the rules, responsibilities, and procedures of an LLC.
Is an Operating Agreement required for an LLC in Idaho?
No, an Operating Agreement is not required for an LLC in Idaho, but it’s strongly recommended.
How long does it take to form an LLC in Idaho?
It can take up to 5-7 business days to form an LLC in Idaho.
Are there any restrictions on the selection of a business name for an LLC in Idaho?
The business name selected for an LLC in Idaho cannot be identical or deceptively similar to previously registered business names in the state.
Can more than one registered agent be appointed for an Idaho LLC?
No, only one registered agent can be appointed for an Idaho LLC.
Does an Idaho LLC need to hold annual meetings?
It depends on the instructions laid down in their Operating Agreement or Articles of Incorporation. In some cases, it may not be required.
What is the process to start an LLC in Idaho?
To start an LLC in Idaho, you need to file articles of organization with the Idaho secretary of state, and pay the required fee.
What types of businesses can start an LLC in Idaho?
Any type of business can start an LLC in Idaho.
Can non-residents own an LLC in Idaho?
Yes, non-residents can own and operate LLCs in Idaho.
What is the timeline for processing an LLC application in Idaho?
It usually takes 5-7 business days to process an LLC application in Idaho.
How much does it cost to start an LLC in Idaho?
It costs $100 to file articles of organization with the Idaho secretary of state.
What is the minimum number of members required to start an LLC in Idaho?
There is no minimum number of members required to start an LLC in Idaho.
Does Idaho require a registered agent for an LLC?
Yes, Idaho requires every LLC to have a registered agent.
How can I find a registered agent for my Idaho LLC?
You can hire a registered agent service or appoint an individual as the registered agent for your LLC.
Can I serve as the registered agent for my Idaho LLC?
Yes, you can serve as the registered agent for your Idaho LLC if you are a resident of Idaho and have a physical street address in the state.
Can I change my LLC’s registered agent in Idaho?
Yes, you can change your LLC’s registered agent at any time by filing a Statement of Change of Registered Agent with the Secretary of State.
What is an operating agreement for an LLC in Idaho?
An operating agreement is a legal document that specifies the ownership and management structure of your LLC.
Is an operating agreement required for an LLC in Idaho?
No, Idaho law does not require LLCs to have an operating agreement, but it is recommended to have one.
How do I obtain an EIN for my Idaho LLC?
You can obtain an EIN for your Idaho LLC by applying online with the IRS.
Do I need an Idaho state tax ID number for my LLC?
Maybe, depending on whether your LLC will have employees or will be selling products or services that are subject to state sales tax.
What types of taxes does an LLC in Idaho need to pay?
An LLC in Idaho may be subject to federal income tax, state income tax, sales tax, payroll tax, and unemployment insurance tax.
What is the annual fee for an Idaho LLC?
There is a $50 annual report fee that LLCs have to pay each year.
How often do I have to file an annual report for my Idaho LLC?
An annual report should be filed by the LLC every year before the end of the required month.
What happens if I don’t file my annual report for my Idaho LLC on time?
If you don’t file your annual report by the deadline, the state can dissolve your LLC.
Can I form a single-member LLC in Idaho?
Yes, you can form a single-member LLC in Idaho.
What is a series LLC in Idaho?
A series LLC is a type of LLC that allows you to separate the operations and liabilities of your business into separate series.
Are series LLCs allowed in Idaho?
Yes, Idaho allows for the creation of series LLCs.
Can I use a DBA for my Idaho LLC?
Yes, you can use a DBA, also known as a fictitious name, for your Idaho LLC.
Can I dissolve my Idaho LLC?
Yes, you can dissolve your Idaho LLC by filing articles of dissolution with the Idaho Secretary of State and paying the required fee.
What is the fee to dissolve an Idaho LLC?
The fee to dissolve an Idaho LLC is $20.
Can I reinstate my Idaho LLC after it has been dissolved?
Yes, you can reinstate your Idaho LLC within five years of its dissolution by filing a reinstatement application and paying the required fee.
What is the fee for reinstating an Idaho LLC?
The fee to reinstate an Idaho LLC is $100.
Can I convert my Idaho LLC into another business entity type?
Yes, you can convert your Idaho LLC into another business entity type by filing a certificate of conversion with the Idaho Secretary of State and paying the required fee.
What is the filing fee for a certificate of conversion in Idaho?
The filing fee for a certificate of conversion in Idaho is $100.

Also Read

How Fast Can I Form an LLC in Idaho

The good news is that forming an LLC in Idaho is a relatively straightforward process that can be completed in a timely manner. While the exact timeline may vary depending on several factors, such as the complexity of your business, the accuracy of your paperwork, and the workload of the Idaho Secretary of State’s office, forming an LLC in Idaho can usually be done in a matter of weeks.

First, you’ll need to choose a name for your LLC that is not already in use by another business in Idaho. Once you’ve selected a unique name, you can reserve it with the Idaho Secretary of State for a small fee. This step can usually be completed online and only takes a few days to process.

Next, you’ll need to prepare and file Articles of Organization with the Idaho Secretary of State. These articles typically include basic information about your LLC, such as its name, address, registered agent, and the names and addresses of its members. The filing fee for Articles of Organization is relatively low and can be paid online or by mail.

After your Articles of Organization have been filed and approved by the Idaho Secretary of State, you’ll need to create an operating agreement for your LLC. While an operating agreement is not required by law in Idaho, having one in place can help protect your business and clarify the rights and responsibilities of its members. This step can typically be completed in a day or two, depending on the complexity of your business structure.

Once you’ve completed these steps, your LLC will be officially formed and you can obtain an EIN (Employer Identification Number) from the IRS, open a business bank account, and apply for any necessary licenses or permits. While this process may add a few extra days to the overall timeline, it is an important step in ensuring that your business is compliant with state and federal regulations.

In conclusion, forming an LLC in Idaho can be a relatively fast and straightforward process if you have all the necessary information and documents prepared in advance. By following the steps outlined above and staying organized throughout the process, you can usually form an LLC in Idaho in a matter of weeks. This timeline may be slightly longer for more complex businesses or during peak filing periods, but with diligence and attention to detail, you can ensure that your LLC is formed quickly and efficiently.

Conclusion

In conclusion, starting an LLC in Idaho is a strategic choice for entrepreneurs seeking a flexible, straightforward business structure with limited liability protection. By following the essential steps, including choosing a business name, filing Certificate of Organization, appointing a Registered Agent, creating an Operating Agreement, obtaining an EIN, and securing the necessary licenses and permits, you can successfully establish your LLC. This business structure offers numerous advantages, such as pass-through taxation and ownership flexibility, making it an attractive option for small business owners looking to grow and protect their ventures. As always, consult legal and business professionals for guidance specific to your situation and state requirements.

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