How to Start LLC in Idaho Step-by-Step Guide
To form an LLC in Idaho:
- Choose an LLC Name
- Select a Registered Agent
- File the Certificates of Formation
- Create an Operating Agreement
- Obtain an EIN
If you want to handle the formation yourself, follow our free, detailed guide below. For information on LLC costs in Idaho, check out the specifics of LLC expenses.
How much does it cost to start an LLC in Idaho?
It costs $100 to start an LLC in Idaho.
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Follow these steps to set up your LLC:
1. Ensure Your Idaho LLC Name is Available
Follow these steps to make sure your LLC name is unique and meets state requirements:
Use the Entity Search tool on the Idaho Secretary of State’s website to check if your desired name is already in use. Two businesses in Idaho cannot have the same name.
Verify if the domain name for your LLC is available. This is important if you plan to create a website for your business.
Select a name that is easy to remember and reflects your brand effectively.
How can I verify if my preferred LLC name is available?
To check if your desired LLC name is available, search the online database provided by the Idaho Secretary of State.
What are the naming rules for an LLC in Idaho?
Your LLC name must include "Limited Liability Company," "LLC", or "L.L.C." It must be unique and distinguishable from other registered business names in Idaho and cannot contain restricted words without proper approval.
Is it possible to reserve an LLC name?
Yes, you can reserve a name for your LLC for up to 120 days by submitting a Name Reservation application, which costs $20.
2. Find a Registered Agent
The Next step is to select your Idaho Registered Agent.
You must choose a Registered Agent for your LLC in Idaho. This person or organization will handle your LLC's official notices and legal communications. The Registered Agent must have a physical address in Idaho to perform this role effectively.
Who Can Be a Registered Agent?
- You: If you have a physical address in Idaho.
- A Trusted Friend or Family Member: Must have a physical address in Idaho.
- A Professional Registered Agent Service: Useful if you prefer privacy or don’t have a physical address in Idaho.
Receives official notices and legal documents for your LLC. Must have a physical address in Idaho (PO Boxes are not accepted). The Registered Agent’s information will be part of the public record.
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What is a Registered Agent?
A Registered Agent is a person or entity appointed to receive legal documents and official government communications for your LLC.
Who can serve as a Registered Agent in Idaho?
In Idaho, a Registered Agent can be either an individual who resides in the state or a business entity authorized to operate in Idaho. The agent must have a physical street address in the state (P.O. boxes are not acceptable).
Can I be my own Registered Agent?
Yes, you can act as your own Registered Agent if you fulfill the residency and physical address requirements.
3. File the Certificate of Formation
File the Certificate of Formation with the Idaho Secretary of State. The fee is $100, and you can file online.
This form officially creates your LLC and includes important details about your business, such as its name, Registered Agent, and management structure.
What is a Certificate of Formation, and why do I need to file it?
A Certificate of Formation is a paper you send to the state to start your LLC in Idaho. It has basic info about your business, like its name and who will manage it. You need to file it so your LLC is recognized by law.
Can I file the Certificate of Formation online, and what does it cost?
Yes, you can file it online through the Idaho Secretary of State's website. The cost is $100, and you only pay this once to set up your LLC. This fee covers the work needed to register your business.
4. Create an Operating Agreement
The purpose of an Idaho LLC Operating Agreement is to specify who owns the LLC and how it will be operated. The certificates create your LLC, but the internal operations of the corporation are outlined in the Operating Agreement.
When you wish to open a business account, banks may request it. Demonstrating to the court that your LLC is operating in compliance with the law is also helpful.
Because of this, having an operating agreement is a smart idea for any LLC, even if it's just you and your business.
This paperwork can serve as proof that your LLC is being handled appropriately, which can shield you from liability.
The Operating Agreement is not required to be submitted to the IRS. Simply maintain a duplicate in your company.
What is an Operating Agreement?
An Operating Agreement is a document that outlines the ownership, management structure, and operating procedures of the LLC.
Is an Operating Agreement required in Idaho?
While not legally required, it is highly recommended to have an Operating Agreement to establish clear rules and prevent disputes.
What should be included in an Operating Agreement?
The Operating Agreement should include details on member roles and responsibilities, voting rights, profit distribution, management structure, and procedures for adding or removing members.
5. Get an EIN (Employer Identification Number)
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How do I apply for an EIN?
You can apply for an EIN online through the IRS website, or by mail or fax.
How much does an EIN cost?
Obtaining an EIN is free. There are no charges for the application.
How long does it take to receive an EIN?
If you apply online, you will receive your EIN within about 15 minutes. Applying by mail or fax may take 1 to 3 months.
Why do I need an EIN for my LLC?
An EIN is necessary for federal tax purposes, hiring employees, opening a business bank account, and meeting other business requirements.
After Your LLC is Approved
Business Bank Account For Idaho LLC
Get a business bank account for your Idaho LLC to keep your personal and business finances separate. This helps you track your money better and simplifies tax reporting.
Licenses and Permits
Your LLC might need certain licenses or permits based on what type of business you run and where you operate. Check the local requirements to make sure you’re compliant.
Taxes For Idaho LLC
Your Idaho LLC will need to handle various taxes. This includes federal and state income taxes. If you have employees, you’ll also need to pay payroll taxes. Know what taxes you need to pay to stay in good standing.
Annual Report
Each year, file an Annual Report with the Idaho Secretary of State. This report updates your LLC’s information and comes with a small fee. Keeping this report current helps keep your LLC active and compliant.