How to Form an LLC in Idaho

This guide for starting an LLC in Idaho offers step-by-step instructions on how to file formation documents, obtain tax IDs, and set up company records.

Note: To form an LLC in your state, you can do the filing paperwork yourself or hire an LLC formation service. Our #1 pick for LLC formations is Northwest.

Overview

The most widely used business structure is the LLC. They are cheap to create, allow for flexibility, and are easy to run. Legally forming an LLC establishes your company, reduces personal liability, and allows for tax flexibility. This guide will walk you through the process step by step.

Step-by–Step Idaho LLC Instructions

#1 Verify Name Availability

Your LLC’s legal name must not conflict with any other registered names. Do a name search to find the availability of the name you are interested in.

Name Search Idaho Secretary of States

Name search

Name Reservation Optional
Suffix: Limited liability companies must have the following: “Limited liability company” or “limited corporation” or the abbreviation L.L.C.,” L.L.C.,” L.C.,” L.C.,” L.C.,” L.C.,” L.C.,” or L.C. “Limited”, “Ltd.,” or “limited company” must be included in the name of a limited liability company.

Idaho Statutes SSS 30-21-302

#2 Set up a Registered Agent

Before you file to establish your Idaho LLC, you need to choose who your Idaho registered agents will be. A registered agent is the business’s legal appointee for receiving notices of lawsuits and other legal or government notices.

Each LLC must be registered by an agent as required by state law. You must designate the registered agent when you file Idaho articles or organization with Idaho Secretary of State.

#3 File Idaho Certificate of Formation

For limited liability companies, you will need to file the articles.

Note: To form an LLC in your state, you can do the filing paperwork yourself or hire an LLC formation service. The average state filing fee to form an LLC in the U.S. is around $100, but this varies by state.

 

Agency: Idaho Secretary of States
Form:
Certificate of Organization Limited Liability Company
Filing Method Online, Mail and
Agency Fee $100 + an optional $20 expedite charge
Turnaround: ~1 week. 1 week. $20 expedite fee.
Law:
Idaho Statues- Title 30 : Corporations – Chapter 6 : Idaho Uniform Limited Liability Company Act
Notes: Send two copies.

#4 Establish Company Records

Your LLC must keep accurate and complete books. Your LLC’s initial documents are your filed articles. The LLC will also produce many other official records, such as:

    • Minutes from meetings
    • Operating Agreement
    • EIN verification letter
    • Amendments to and other filings made by the LLC throughout its life

#5 Create an Operating Agreement

The Operating Agreement, which is the governing document for your LLC, can be drawn (or used as a template). It outlines the procedures of how the LLC will be run, including holding an annual meeting. At your organizational meeting, you will review the agreement and vote on it.

#6 Hold the Organizational Meeting

The organizational meeting is the first meeting for members of the LLC. This meeting will require your operating agreement and filed articles of organization. Keep the minutes of this meeting in your company record book.

#7 Get a Federal Employer Identification Number (EIN).

EINs are required for LLCs that have more than one member and those who hire employees. EINs are often required in order to open a bank account.

Agency: Internal Revenue Service
Form:
IRS Form
Filing Method Mail, phone or fax
IRS fee $0
Turnaround: You can order online immediately or by telephone. 4 business days by fax. 4-5 weeks by post
Notes: The IRS website is not available after hours. Before you close your session, print your EIN. For more guidance, refer to IRS Public 1635: Understanding your EIN.

Idaho State Tax Identification numbers/Accounts

A Idaho seller’s permit is required for any LLC that sells retail goods. You will need an Idaho withholding bank account if you have employees. Register for Idaho tax accounts online. You will need to register your LLC at the Idaho Department of Labor, Idaho State Tax Commission and Idaho Industrial Commission.

Send to:
Idaho State Tax Commission

http://tax.idaho.gov/

Filing Method

Online Idaho Business Registration System and Permit/Account application
Fee:
$0

Consider Electing C-Corp Taxation / S-Corp Governance

Your LLC is subject to pass-through taxes by default. Most LLCs retain this tax classification. Some LLCs may be eligible for C-Corp or S-Corp tax treatment.

    • S-Corp helps owner-employees with more than $75,000 per annum save on self-employment tax.
    • C-Corps are subject to double taxation. The corporation pays taxes on profits, and members pay taxes for distributions. C-Corps may offer low tax rates for retained earnings if profits exceed $250,000 per owner.

Apply for Business Licenses & Permits

Licenses and permits are required to legally run your business. You can search for your type of business and the location you live in using the Small Business Administration Business License & Permit Look-up Tool. This will allow you to quickly navigate through the many federal, state, local, and international requirements.

Idaho Business License

NOT REQUIRED

Idaho does not require general business licensure.

Idaho does not have a general license for business at the state level. However, local licenses are sometimes required.

For your LLC, you will need to continue filings

You must file tax returns for both the federal and state levels.

In many states, business entities must file an annual return to keep their status with the secretary. For LLCs in Idaho, a report must be filed annually. See the table below.

Idaho Corporation Annual Report Requirements

Agency: Idaho Secretary of States
Form: The Secretary of States’s office can provide a report via mail.
Filing Method Mail or Online.
Agency Fee $0
Due: Annually, on the last day of the anniversary month. Your annual report is due March 31, if you are foreign-qualified, or were incorporated on March 15.
Law:
Idaho Statutes SSS 30-21-213.
Penalties: No late fee. The secretary will cancel or dissolve your business within 60 days.
Notes:
  • Anyone who has authority may file.
Note: To form an LLC in your state, you can do the filing paperwork yourself or hire an LLC formation service. The average state filing fee to form an LLC in the U.S. is around $100, but this varies by state.
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