If you are planning to apply for an LLC or Professional LLC in Idaho, it is important to have an idea of the right course of action. Fortunately, in comparison to some other states, the process of starting an LLC in Idaho is fairly easy and can even be done by an aspiring businessman.
In this article, we will take a look at how to open an Idaho LLC quickly and smoothly. You will learn what documents and fees are required, where to get the necessary forms, and where to submit them once completed. In addition, we’ll briefly mention how to keep a business in Idaho in good standing and what the basic requirements are for companies registered in the state.
Are you planning to create an LLC and are in the process of choosing a name? Make sure you pick a name that is not only creative and memorable but also legal. Some of the main criteria that an Idaho business name should meet include:
To make sure that you have chosen a unique LLC name, it is important to check it before submitting documents. You can do a free Business Search available on the official page of the Secretary of State.
If the result of the check shows that the name you want is available, you can proceed with the business startup with confidence. However, if the LLC name is already taken, you need to improve its uniqueness. There are several ways to do this:
You do not plan to start Idaho LLC formation but are afraid that someone else will register your name first? Take advantage of a reservation. For a reasonable fee, the state allows you to keep your desired company name for 4 months, protecting it from third parties.
You can apply for name reservation either online, through the SOSBiz page, or by sending a paper application to:
Office of the Secretary of State
450 N 4th Street, PO Box 83720
Boise ID 83720
Please, note that the cost of processing documents depends on how they are submitted. There is a mandatory fee of $20 for digital forms and $40 for paper forms.
As for timing, paper documents are usually processed within 7-10 days. However, for $20, you can take advantage of expedited service for either filing option.
An Operating Agreement is an internal act of the LLC governing its basic operating procedures and management structure. While an Operating Agreement is not required for doing business in Idaho, it is a good practice. Among the benefits of having this document are the following:
Due to the fact that this is not a mandatory internal document, there is no official form for Idaho Operating Agreement LLC. You can get it in two ways:
Of course, you can register LLC without taking the time to prepare an Operating Agreement. However, in the future, having one can make doing business much easier and protect your company’s status.
Section 30-21-402 requires that each LLC has to designate an agent for service of process, whose purpose is to receive official correspondence addressed to it. This is a mandatory step because the state will deny your application if there is no record of a registered agent.
A business owner may designate either an individual or an entity as a registered agent LLC, as long as the requirements are met, of course.
No experience or special education is required to become an Idaho LLC Registered Agent. The criteria a candidate has to meet are as follows:
If you are interested in professional service, consider hiring an online company. Services like LegalZoom will take over your registered agent duties for a reasonable fee, as well as provide access to a wide range of additional offers. It’s a good chance to simplify your business processes and a solid investment in your company’s future.
After you file an LLC, you need to take care of opening a business bank account. Having a business checking account is a guarantee that the assets of the company are securely separated from the personal funds of its owners. This is necessary to protect an LLC in Idaho because otherwise, the court can overturn the limited liability protection, which will result in serious financial costs.
Usually, to open a business account, you need to provide a bank with such documents:
After Idaho LLC registration, you will most likely need to obtain an Employer Identification Number (EIN). This is a unique 9-digit number that the IRS assigns to businesses for quick identification of tax records. It is required for businesses that:
You can get an EIN online, by mail, or by fax. All these methods are free but will have an impact on the speed of processing.
To apply online and get your EIN immediately, you’ll need a valid Social Security number. Please, note that you can only apply between 7 a.m. and 10 p.m. EST, Monday through Friday.
If you’re willing to wait about 4 weeks for your EIN, you can mail your completed Form SS-4 to:
Internal Revenue Service Operation
Attn: EIN Operation
Cincinnati, OH 45999
If you wish to receive your EIN within 4 business days, you may fax a completed Form Form SS-4 to:
Although an LLC is not required to get an EIN, almost all businesses need one. It allows you to get Idaho LLC in the most efficient way possible and meet the basic requirements for an LLC.
The first step in the formal Idaho LLC formation process is to file the documents with the Secretary of State. Depending on the circumstances, LLC Formation Documents may be referred to as Certificate of Organization or Articles of Organization, meaning one form.
To fill out the Idaho LLC Certificate of Organization, you will need to provide the following basic information:
You may file the Certificate of Organization online or use a paper copy.
If you prefer the convenience and speed of digital documents, registering online is your best option. To apply, you will need to follow the steps such as:
If you appreciate the reliability of a paper application or just want to pay the required fee by check or money order, you can send the materials by mail or deliver them in person.
Fill out the online form on the SOSBiz page and print it out. There is a $120 mandatory processing fee for paper documents, which is slightly more expensive than online registration. Send the materials and a check for the state fee to:
Office of the Secretary of State
450 N 4th Street, PO Box 83720
Boise, ID 83720
The approximate estimated time to review the Certificate of Organization is 7 to 10 business days. However, you can get an LLC within 8 business days by ordering expedited service for $20.
After opening an LLC in Idaho, owners have to comply with current state requirements to keep the company in good standing. For example, one of the main requirements for LLCs doing business in Idaho is timely reporting. This is important because the state should always have up-to-date information about the company.
Idaho is one of the few states where there is no mandatory fee for processing annual reports. It should be done annually, no later than the end of the month in which your company was officially registered.
According to state requirements, LLCs file an annual report online. To do so, visit the SOSBiz page, then click “File Annual Report,” and follow the instructions for submitting the form.
If you miss the deadline for filing an annual report, there is no late fee. However, the LLC may be subject to administrative termination if the breach is not corrected within 60 days of the deadline.
Once the Certificate of Organization is approved, your business is considered fully legal. However, more often than not, it is not enough to operate. Most businesses need to obtain business licenses and permits, the number and type of which are determined by their industry and location.
Unlike some other states, a general Idaho business license is not required. However, you will probably have to obtain one or more other licenses. To learn more about this and to determine LLC license costs, check out the Online Services page.
When planning to start a business, keep in mind that cities and counties may have additional licensing requirements for LLCs registered in their territory.
In addition to reporting, business owners should not forget about LLC tax filing, which plays an important role in a confident and successful development.
Taxes are one of the most significant expense items in the business budget. They can be provided for at all levels of management.
All LLCs are treated as “pass-through” tax items by default, which exempts the company from filing its own return. Instead, owners report business profits and expenses on personal 1040 tax returns and/or Schedule C.
However, because of the tax flexibility, business owners can change their tax treatment to corporate taxation.
When it comes to state taxes, Idaho follows the same principles as federal law. LLCs generally do not pay taxes on their own behalf, delegating that responsibility to their owners. Moreover, there are no “franchise” or “privilege” taxes in this state, which creates an attractive environment for company development.
Moreover, there are several LLC tax forms, depending on the characteristics of your business. For example, companies with employees should pay Withholding and Unemployment Insurance Taxes. Another common business tax form for an LLC is Sales and Use Taxes, which are mandatory for businesses that sell goods or services.
LLCs should register with the State Tax Commission website to pay taxes.
An LLC is one of the most reliable yet simple business structures. We believe that you can easily do the job of setting up an LLC in Idaho on your own, but you can save energy and nerves by using the services of online companies.
Today, there are dozens of LLC formation services that offer LLC help at all stages of a business’s life. In addition, it is a great opportunity to save money getting high-quality professional service. For example, affordable online services like IncFile or ZenBusiness will make LLC startup Idaho not only easy but also profitable. Their startup packages for starting an LLC have attractive prices starting at $0 to $49 and include 1 year of free registered agent service.