How to Start an LLC in Idaho: If you’re interested in setting up an Idaho LLC, you’ve come to the right place. Having an LLC not only protects your personal assets but also is less complicated than other business structures. Idaho laws make it easy to establish your LLC. On this page, You’ll find all the steps that must be taken to ensure that your LLC has been correctly established in Idaho. We recommend you read the whole article very carefully, word by word, don’t miss anything 🙂
On this page, you’ll learn about the following:
- How to Start an LLC in Idaho
- After Starting Your Idaho LLC
- Idaho Foreign LLC
- Top 3 Businesses in Idaho
- Idaho LLC Formation Review
How to Start an LLC in Idaho
An LLC or a Limited Liability Company is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection.
If you wish to start an LLC, you mainly have to file your Certificate of Formation with the State and pay a filing fee of $120. There are some more steps to follow to get your LLC established in Idaho. The following steps explain everything you need to create your LLC in 2022. Let’s get started! It is always recommended to hire a professional LLC formation service in Idaho to set up your LLC.
Step 1: Decide a Name for Your Idaho LLC
The very first step while forming an LLC in the state of Idaho is to give a proper name to your LLC. Before you name your business, you must know that the name should be easy to remember, available in the state, and follows all the LLC naming guidelines.
LLC Naming Guidelines in Idaho
There are a few specific requirements all the LLCs in Idaho have to follow while naming their Company. Some of the most important requirements are as follows:
- Your business name should be available and no other existing business in Idaho can have the same name. Perform a name search from the below-mentioned source to be sure your name isn’t taken already.
- “Limited Liability Company”, “LLC”, and “L.L.C.” – any one of these has to be used as a suffix in your business name.
- You cannot use any name for your business that is confusing or misleading. Terms such as “Treasury”, “State Department”, “FBI”, “CIA”, etc. shouldn’t be included.
- Terms like “Bank“, “University“, “Attorney“, “Doctor“, etc can be added only after the additional requirements by Idaho State Government are fulfilled.
- (Optional) It’s better to name your business something for which your desired domain is available.
|Important Links –||Submit Offline Form to –|
|Idaho Business Entity Search – Online Name Search|
Name Reservation Form – PDF
Idaho LLC Name Search Guide – Instructions
|Office of the Secretary of State|
450 N 4th Street
P.O. Box 83720
Boise, ID 83720-0080
Reserve Business Name for Future
If you do not wish to file your LLC right now but want to hold the name you have decided then you can reserve your LLC name for 4 months. To keep the name, you have to file a name reservation application and pay $20 ( $20 additional for filing by mail) to reserve your name with the Idaho Secretary of State.
Doing Business As (DBA) or Trade Name
Once you have a legal name for your LLC, you can register it. However, it is not mandatory. You can, instead, use DBA, Fictitious Name, or Trade Name. In that case, you must register your name with the Idaho Secretary of State by submitting a Certificate of Assumed Business Name form in Idaho along with the filing fee of $25 (online) or $20 additional (for mail or in-person processing).
Recommended: You can do name search, get company logo, business domain, website, emails, and a lot more in one place by hiring a professional service. We recommend using –
TailorBrands – ($49 + State Fees) Online LLC Setup
TailorBrands offer DIY website templates and incredible logo designs. If you plan to get a website then it is wise to have a “.com” domain for your business but these days you can also use other TLDs like “.company”, “.xyz” etc. With TailorBrands, you can get everything you need at an affordable price.
It is not legally mandatory to use the word LLC in your domain name or email. If you want you can use it. However, it is recommended not to use LLC in the domain name. A domain name should be short and easy to remember.
Step 2: Assign a Registered Agent in Idaho
The second step to forming an LLC in the state of Idaho is to appoint a Registered Agent. A registered agent is a person or business entity that will act or work on your LLC’s behalf. This person or business will receive important tax forms, legal documents, all notices of lawsuits, and other official government correspondence in Idaho. Hence, hiring a competent Idaho Registered Agent for your LLC is necessary.
Make sure your registered agent is a resident of Idaho or has a physical street address. Their business address or the principal address should be in Idaho. Most LLC formation companies also provide registered agent services. Below are two great LLC setup services, even if you buy their cheapest plan (normally $49/year) you also get registered agent service and other services at a reasonable price.
These LLC formation services are recommended registered agent services as they are authorized to conduct business in Idaho. Some LLC formation services offer standalone Idaho registered agent services. You can purchase only Registered Agent services from them without purchasing any other LLC formation services.
A person who is above 18 years of age and has a physical address in the state of Idaho can be a Registered Agent. A Registered Agent can be an independent person or can be a business entity. One who is responsible for handling all the legal documents.
Yes, you can be your own registered agent if you are a resident of the state of Idaho and you are above 18 years of age. To become a registered agent you must have the authority to conduct any type of business in Idaho.
Registered Agent Consent Application
In Idaho, there is no separate Consent Letter to be produced to the Secretary of State. At the time of change of Registered Agent (or the name or address), the new Registered Agent has to sign the consent letter. It comes with the Application form to Change the Registered Agent. The filing fee of $20 should be paid for it. For more information on the same, read our guide on Idaho Registered Agent.
Step 3: File Certificate of Organization in Idaho
The third and most important step in forming an LLC is to file the Certificate of Organization. This Idaho Certificate of Organization is a legal document needed to officially register your business with the Secretary of State. It costs $120 (by mail and $100 online) to file your formation certificate in Idaho. (Read more on LLC cost in Idaho).
The Certificate of Formation includes details like the name of the LLC, registered agent’s name, address, employees’ details, and structure of the company (member-managed or manager-managed). Before hiring employees in Idaho LLC, one should know about the rules and regulations thoroughly. Also if you are expanding your existing business (an LLC) to Idaho then you need to register as an Idaho Foreign LLC.
How to File Online
Go to the Secretary of State Online Service. You will get the online service page. Select the ‘File Certificate of Organization” option to file your LLC online. If you’re already subscribed, then you can log in to the account and start filing. Click on the “Online Filing” button below. If you’re not a subscriber then create your new account by clicking on the Sign-up button. Read more about the Idaho Certificate of Organization for online registration.
How to File by Mail
If you prefer filing real-life forms for your LLC registration, then you can download Domestic LLC Formation Form. Read the form thoroughly, fill it out, and mail it to the following address,
Office of the Secretary of State
450 N 4th Street
P.O. Box 83720
Boise, ID 83720-0080
Processing Time: It takes around 7-10 business days to form an LLC in the state of Idaho. By paying an additional fee, it can be expedited.
Recommended: Online LLC Formation service can provide all these documents within 6-8 days with lifetime customer support and 100% accuracy. We recommend using –
TailorBrands – ($49 + State Fees) Online LLC Setup
Step 4: Create Your LLC Operating Agreement in Idaho
Moving on to the fourth step, filing your operating agreement. An operating agreement is an internal document that legally outlines the proprietorship and operating procedures of your LLC. This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
When it comes to filing an Idaho LLC Operating Agreement, the state does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all the details of your business operation. Like Idaho, there are other states that do not have a mandatory rule to file operating agreements. But, this document would be useful if you decide to dissolve Idaho LLC later. Hence, having an operating agreement may not be necessary but it is definitely ideal.
Recommended: You can get operating agreement templates at only $29 with TailorBrands. You don’t need to worry about drafting it as they will take care of it on your behalf. We recommend using –
TailorBrands – ($49 + State Fees) Online LLC Setup
Step 5: Filing an LLC EIN in Idaho
The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify the type of business for tax purposes and taxes in general. The EIN is necessary for any active business or any form of business for that matter.
EIN is needed when the LLC hires employees. Hiring employees in Idaho LLC requires following specific rules and regulations. On the other side, EIN for Idaho foreign LLC should be obtained if your LLC is based in other states.
To obtain EIN (aka FEIN) one has to fill up a form (Online or by mail) and submit it to the IRS. Enter details of your LLC, and finally complete the form and send it to the address given. You can also get an EIN Assistant who can help you with the process.
Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Fax: (855) 641-6935 | Fee: Free
Recommended: This hassle will be reduced when you hire an LLC formation service. They take care of obtaining EIN and all other things for your LLC. We recommend using –
TailorBrands – ($49 + State Fees) Online LLC Setup
Note: You don’t need a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.
Congratulation, you are now done with all the necessary steps to form your LLC in the state of Idaho. If you do it yourself, it should take you a long time to properly understand and do all the steps.
However, if you use TailorBrands, it should be way faster. You will always have a live chat option as well as phone support with experts for any help you need. Their worry-free service will make things easier for you.
After Starting Your Idaho LLC
After forming your LLC, there are still some things that you will need. Take note of the following:
- Get a company business bank account. Business accounts must be separated from personal accounts.
- File Idaho business permits & licenses. There are fees for business licenses to be paid to obtain the license. Permits such as health permits, building permits, signage permits, and others might require based on the type of business.
- Get general liability insurance and professional liability insurance with coverage for employees.
- File an Idaho LLC annual report or biennial report
This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings, to make sure your LLC is up-to-date.
Cost of Starting an LLC in the State of Idaho
Forming an LLC in the state of Idaho is no doubt more cost-effective than other structures of a business. There are some fees and charges one has to bear to form an LLC in the state of Idaho. LLCs have pass-through taxation. Hence, your LLC won’t bring you a massive tax burden. Here are some of the fees and taxes are needed to be paid while forming an LLC in the state of Idaho,
|Fees/Tax||Amount to be Paid|
|Name Reservation Fee (online/Mail)||$20|
|File DBA Fee||$25|
|Certificate of Organization Fee||$120 (by mail and $100 online)|
|LLC Annual Fee||$0|
In Idaho, an LLC name reservation is not mandatory. You can register your LLC name at the time of registering your LLC. If you wish to hold the name for some time without registering your LLC, then you can do that online. Your LLC name will be reserved for 4 months without registering your LLC. It can be done by paying $20.
In Idaho, an Annual Report has to be produced every year. It costs $0, which means it is free. LLCs in Idaho have to pay a Sales Tax of 6%. Read our guide on LLC costs in Idaho for more information.
Idaho Foreign LLC
If you are interested in forming a Foreign LLC in the state of Idaho, then you need to file the Certificate of Foreign LLC to the Idaho Secretary of State. Foreign LLCs allow you to operate your business in more than one state. Along with the Certificate of Foreign LLC, you need to submit some more documents, like the Certificate of Good Standing, etc., to the Idaho SOS to form your foreign LLC in the state of Idaho. To know more in detail, check out our guide on Idaho Foreign LLC.
Reasons to Start an LLC in the State of Idaho
Idaho limited liability company comes with a set of benefits. Along with the reduction in tax liabilities, LLCs will get a business funding option to run a successful business. The state has a one-time cost of filing. Apart from the filing fee, there are some federal taxes, and employment tax if the LLCs hire employees. Idaho is a desirable state to have an LLC as businesses get potential customers. Other than a few taxes, the state of Idaho does not have many annual costs.
Along with tax benefits, having an LLC brings long-lasting benefits. A single-member LLC is treated as a sole proprietorship, and a multi-member LLC is treated as a typical corporation. Apart from a few federal and state taxes, LLCs do not have to pay any business taxes. Getting business loans is easy in Idaho, especially for an LLC. For a loan, you must submit a bank application. You can submit an online application too. LLCs in Idaho get immense business opportunities. In Idaho business resources are easily available. Even for an informal business structure, it is easy to get financial assistance.
LLCs do not have a business income tax, but the members have to pay personal income tax. Some of the key benefits of having an LLC in the state of Idaho are below,
While starting an LLC, everyone tries out different ways to save money, and the biggest of them is tax saving. This tax saving will be provided by LLC very efficiently in Idaho. Read more on Idaho’s classification of LLC tax.
Along with the division of the taxes into various slabs, the slab rates are lower than in other states. This will help in alleviating the gross business income of the members of Limited Liability Corporation. The property taxes are the second-lowest in Idaho which is attracting many businesses.
Robust State Budget
Budgeting of the state is not directly linked with the business incorporation, but indirectly it affects many aspects of a business. We all know that the only way through which government earns money is through taxation. Now, if the government lacks funds, then the taxes ought to increase a bit. But the same is not in the case of the Idaho government. The state budget is stable, having a strong past track record due to which it is not affecting the business in any way negatively.
Due to their strong budgeting, they also keep a thing of how they can increase the rate of projected jobs, and they are ranked number three in increasing the rates of jobs.
The opportunity is a factor on which the future of the business depends. In Idaho, these opportunities are available in abundance. The environment is there may be competitive, but it pushes every LLC member towards their positive growth. This makes the economy of Idaho growth-oriented and helps out people grow. An example of the most significant opportunity is export. So, if you are somewhere related to export, then start an LLC in the state of Idaho without wasting any bit of time.
LLC Member Enjoy Independence
In case the LLC has different partners, and one of them dies, then there will be little to no effect on the other LLC members. The functioning of LLC in the state of Idaho will be the same as it was before. This shows that no matter what happens to one stockholder, the other’s life and the business will remain unaffected.
Top 3 Businesses in Idaho
To form an LLC in the state of Idaho is the best decision, but only in one situation. It would be best if you had a good business idea in your mind. To help you out in your journey looking for the best businesses in Idaho, we are here to help. Here is a list of the best businesses in Idaho.
Potato Cultivation and Processing
The state of Idaho is very well known for its potato production as the state’s soil offers the best environment for the crop to grow. More than 311,000 acres of potato is used for potato farming which produces around 15 billion pounds of potato. Due to such a huge industry, the demand is manufacturing units that can convert raw potato into a valuable product.
There are many industries related to potato product manufacturing to exporting, which you can decide from.
Many famous chemicals named benzylamine, calcium hydroxide, morpholine, etc., are produced in the state. Many milestone companies like Redox Chemicals and Argon Bio-energy registered in the state, responsible for the country’s major chemical production. Moreover, with the increasing advancements, the demand for chemicals is increasing, for which more products and companies are required.
Wood and Lumber Production
Based on the recently launched data, the Idaho state’s wood industry contributes around 6.8% to the manufacturing GDP of the state, which is increasing continuously. Idaho’s paper industry is fulfilling the demand of its nearby states because of a dense forest cover in the state. Moreover, the state has the latest emerging technology due to which the waste of trees is better utilized in paper production, which can be the best business idea to opt for.
If you are thinking of investing less money, then you can opt for the following businesses.
- Tutoring business
- Advisory Firms
- Printing Business
Idaho LLC Formation Review
Time needed: 5 minutes.
Just to recap, here are the easy steps again when forming an LLC in Idaho. Click on the steps in this list to read the full detail.
- Name your Idaho LLC
The first thing you must do is to choose a company name, which should be unique, easy to find, and available in the state.
- Choose a Registered Agent
In Idaho, it is mandatory to select a registered agent for your LLC. Get a professional Registered Agent from LLC formation services to get things done hassle-free.
- File a Formation Certificate
Filing a formation certificate is necessary when forming a Limited Liability Company in Idaho. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Create an Operating Agreement
An operating agreement is not a strict requirement in Idaho but something encouraged when you start an LLC to avoid future conflicts.
- Get an EIN
The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
Things to Consider While Starting The LLC in the State of Idaho
In this article, all the basic steps are explained. However, there are more things that need to be considered. Running a business is not an easy task. An LLC is a simple business structure, but there are some common things that need to be done.
The first thing you need is a business plan. It must have all the details of your business activities. For example, business formation plans, business entity type, business expenses, business taxes (depending on the type of business), and all other business-related details.
Irrespective of the business type, there are some basic requirements, such as naming requirements and agent requirements. Names can be searched in the business name database. Besides, you can get the business name reservation service available in the business kit offered by professional business services.
A registered agent must be present at the principal office address during normal business hours. They are responsible for receiving legal papers, official government documents, formation documents, and other legal documents.
Whether a manager-managed LLC or a member-managed LLC, LLCs do not have to pay any taxes on their revenue. Members of the LLC will only have to pay federal income taxes based on their income. You might need a business accountant for various business checking, including the details of business licenses, business tax accounts, business bank accounts, business credit cards, and other business cards. There are several professional service providers available where business experts guide you through all these details.
Another important thing is the operating agreement which might not be mandatory in Idaho but helps in making important decisions, such as the form of business ownership among the members, future business partners, and Idaho business dissolution. It is also helpful if you are a foreign business entity and willing to start your foreign business in Idaho.
There are several online business services websites available. You can explore them and hire them to help you through the filing procedures. Amendment filings services, government filings, tax filings, and others will be hassle-free. Also, you can avoid late filings as they remind you about the upcoming filing deadlines. They will provide you with long-term business support at an affordable price.
How Fast Can I Form an LLC in Idaho
When filing via mail, an Idaho LLC may take up to 2-3 weeks for processing. In case of online filing, the time may be reduced to 7-10 business days. For an additional fee, the process can be expedited.
Getting an LLC in Idaho is a great way to start a business. However, before you dive in you must make sure you have the right type of business. A limited liability company (LLC) is a type of business entity that allows a business owner to protect their personal assets while providing the business owner flexibility when managing a business. You must also register with the state of Idaho and pay taxes. The good news is that there is no need to spend a fortune on an LLC. In fact, you will pay relatively little to form an LLC in Idaho.
If you are going to form an LLC, you will need a company name and a registered agent. A registered agent is an individual who has been appointed to receive and forward documents on behalf of your company. Generally, anyone 18 years of age or older with an Idaho address can serve as your registered agent. Your registered agent’s name and address must be on file with the Idaho Secretary of State.
You may also need to register with the state for a business license, payroll taxes, and state taxes. You can do so online or through your local bank. A few community banks offer free accounts. Your local bank may have more lenient lending requirements and a better focus on boosting the local economy.
You may also want to consider getting an operating agreement for your LLC. An operating agreement describes the operations of your business, including who has the power to make decisions, who can vote, and how the company should handle disputes. An operating agreement is not mandatory, but it is a smart move. It can also help prevent disputes down the road.
A Limited Liability Company is one of the more popular types of business entities. An LLC is a pass-through tax entity, which means that the profits from your LLC must be reported on your income tax return. The IRS allows you to create a federal Employer Identification Number (EIN), which is a number similar to a social security number. This helps the IRS and other authorities recognize your business for federal tax purposes.
There are two main ways to form an LLC in Idaho. You can do it yourself or you can use an LLC formation service. If you choose to form an LLC yourself, the process can take up to seven to ten business days. You can also expedite the process by paying an expedition fee. These fees are in addition to the LLC filing fee. This fee is typically around $100 and will speed up the process.
The fastest way to form an LLC in Idaho is by using a formation service. These companies will handle the rest of the process for you. In addition to the LLC filing fee, you will pay an expedition fee to expedite the process. These fees range from $30 to $100 and will speed up the process by about 7 days.
If you are a resident of Idaho, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.
Apart from the formation fee of $100 (domestic LLC) and $100 (foreign LLC), LLC costs in Idaho include $0 for Annual Reports every year. LLCs are liable to pay a sales tax of 6% every year.
It takes 7-10 business days to get an LLC in the state of Idaho. If you hire a professional LLC service, then it might take less than that. We recommend TailorBrands, which has an impeccable turnaround time.
Every year all the LLCs have to submit an Annual Report for free to the Idaho Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.
Generally, for LLCs, it is a default tax structure. Once you obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens. Read more on the Idaho Classification of LLC Tax.
LLCs are easier to establish than other business structures. Small businesses, especially start-ups, can easily start an LLC in the state of Idaho at a bare minimum cost. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. The formation of limited liability companies requires much lesser documents and legal processes. Share your queries with us, and leave a comment below.