How to Start an LLC in Idaho
Here are the 7 steps to start a limited liability company (LLC) in Idaho
For more information on how to form an LLC in any state, see the article How to Form an LLC.
Find out how to form a Idaho LLC for yourself
Learn about Idaho LLC formation, including information on Registered Agents, naming rules, business licenses, and more.
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Creating an LLC in Idaho
A limited liability company (LLC) offers many benefits to small businesses, including liability protection and tax advantages.
In order to form a Idaho LLC, you must file Certificate of Organization with the Idaho Department of Financial Institutions, The filing fee is $100 ($120 for filings by mail).
However, you’ll first need to choose a name and registered agent for your Idaho LLC.
Mail Filing: Approval of mail filings for Idaho LLCs takes about 2-3 weeks in total. This includes the processing time of 7-10 business days as well as the time your documents are in the mail.
Online Filing: Approval of online filings for Idaho LLCs takes 7-10 business days in total. There is no additional transit time because you can download your documents as soon as they are approved.
An LLC can be easily formed in Idaho. Our step-by-step guide on How to Start an LLC in Idaho will help you get started today. Find out more about LLCs and their benefits in our What is an LLC guide.
Step 1. Choose a Name for Your LLC Idaho
Creating an LLC in Idaho requires you to choose a business name before you can file a Certificate of Organization. Be sure that your business name complies with the Idaho naming requirements and can be searched by potential customers.
- Idaho law requires an LLC name to contain the words “Limited Liability Company” or “Limited Company,” or the abbreviations “Ltd.,” “LLC,” or “LC.” “Limited” may be abbreviated as “Ltd.” or “LTD,” and “Company” as “Co.”
- It is not acceptable for your Idaho LLC to have words associated with a government agency (FBI, Treasury, State Department, etc.).
- You should avoid using words or abbreviations that may make your LLC Idaho appear to be a different type of entity, such as “LP” or “corporation”.
- There may be additional documentation and licensure paperwork required for certain restricted words (bank, lawyer, attorney, credit union, etc.).
- Check the state’s business name database to ensure the name you want is not already taken(including businesses no longer in operation)
See a complete list of Idaho’ naming rules here.
Check URL availability: You are likely to need a web page even if you don’t think you do. Buying your domain name now will at least give you the option of having one in the future. It’s a good idea to check the URL availability before finalizing your Idaho LLC name.
By filing a Reservation of Legal Entity Name with the Secretary of State, you can reserve a name for up to four months. You have the option of filing online or by mail. Filing fees are $20 ($40 for mail-in filings).
An LLC stands for a Limited Liability Company. A simple business structure that is more flexible and offers many of the same benefits as a traditional corporation. For more information, see “What is a Limited Liability Company?”.
An assumed business name in Idaho is referred to as a DBA (doing business as). Assumed business name registration in Idaho allows a company to operate under a name other than its legal name. Unlike forming an LLC or company, DBA registration will not safeguard your personal assets. To learn more about DBAs, read our “What does DBA mean“Guide.
Step 2: Appoint Your Registered Agent in Idaho
Your next step in forming an LLC in Idaho is to appoint a Registered Agent, an individual or company authorized to receive legal and state mail on your behalf.
All Idaho LLCs must have a registered agent. Please include your registered agent’s name and address on your Certificate of Organization.
Registered Agent Requirements in Idaho
To comply with Idaho law, your LLC’s registered agent must be a resident or business entity that maintains a physical address in Idaho. The “registered address” cannot be a P.O. box. It must be a real physical address that can be visited in person.
Although you do not have to submit this form to the Secretary of State, your business must record it. Learn more about Idaho Registered Agents by reading our full guide.
A Registered Agent must be a Idao resident or a corporation authorized to conduct business in Idaho, such as a registered agent service. You have the option of electing someone from your company, including yourself.
By submitting a Registered Agent and/or Registered Office Change Form to the Idaho Department of Financial Institutions, you can change your registered agent.
Are You looking for a Registered Agent?
Wise Business Plans offers a free year of registered agent service when forming an LLC in Idaho.
Step 3.Prepare and File the Certificate of Organization
To create a Idaho LLC, you will need to file Certificate of Organization with the Idaho Secretary of State. You may apply online, by mail, or in person.
For mail or online filing, Idaho offers two expedited LLC options:
For an additional $40, you can have your order processed in 8 business hours.
For an additional $100, same-day processing is available (must be received by 1pm)
The LLC filing fee is not included in the expedited fees.
If you choose one of our business formation services, we can handle this step for you.
The following information is typically required to create a Certificate of Organization:
- Your LLC name and principal place of business.
- Name, address, and signature of the LLC’s registered agent
- Decide whether your Idaho LLC will be member-managed or manager-managed. Indicate the names and addresses of each member and manager.
- The reason for forming the LLC in Idaho.
- Name and address of the LLC’s organizer.
- The effective date of the certificate,
- The person forming the LLC must sign the Certificate.
Foreign LLCs: LLCs that are based in another state but intend to conduct business in Idaho must complete a form called the Qualification of Foreign LLC.
A filing fee of $100 (plus a $1 fee for debit or credit card processing) to file. also applies to this form, and you need to attach your state’s certificate of good standing.
Two Ways to File the Certificate of Organization
The 1st option is:
File Online with the Idaho Secretary of State
The 2nd option is:
Filing the Certificate of Organization by Mail
There is a state filing of $100 Online, $120 By Mail payable to the Idaho Department of State. (nonrefundable)
Office of the Secretary of State
450 N 4th Street
P.O. Box 83720
Boise, ID 83720-0080
In a member-managed LLC, the members (owners) take on the business’s daily responsibilities. Manager-managed LLCs are managed by managers who are elected by the members. Those who manage your LLC will have the authority to do a wide range of tasks-from hiring staff to opening bank accounts.
When an LLC conducts business in the state where it was formed, it is referred to as a “domestic LLC.” Normally, when we talk about an LLC, we’re talking about a domestic one. When an existing LLC wants to expand its operations to another state, it must form a foreign LLC.
Step 4. Get a Certificate From the State
Upon filing your Certificate of Organization, the secretary of state will review it. As soon as the Certificate of Organization is approved, the LLC becomes a legal entity.
By obtaining this certificate, LLCs will be able to obtain an Employer Identification Number (EIN), business licenses, and business bank accounts.
Step 5. Write an Idaho LLC Operating Agreement
An operating agreement is a legally-binding document that sets out how your LLC will operate, from the voting process to mergers.
Operating agreements are not required in Idaho, but they are an essential part of your business.
Written operating agreements are helpful for different reasons, including resolving disputes over financial agreements and other potential litigation.
The LLC declaration can prove that your LLC is a separate entity, which can help preserve your limited liability.
An operating agreement ensures that all business owners are on the same page and reduces the possibility of future conflict.
How should an operating agreement be drafted?
The operating agreement should detail the LLC’s overall business purpose and other important matters, such as how the company will be taxed and how new members will be accepted. Legal agreements can clarify several important concerns, such as:
- Who makes decisions for the company, especially those who decide if partners disagree.
- Who is responsible for different aspects of the business as well as for strategic decisions.
- If a partner leaves the company, what will happen to their ownership interests in the corporation.
- The members and their contributions
- How profits and losses will be divided
- Procedures for admitting new members and removing outgoing members
In Idaho, you can include just about anything in your operating agreement, as long as it doesn’t violate the state law or the Certificate of Organization.
Idaho does not require you to file an Operating Agreement. This document should be filed internally at your LLC’s primary place of business once it has been approved by your membership.
Step 6. Get an EIN for Your Idaho LLC
Basically, an employer identification number (EIN) is a social security number for your LLC in Idaho.
To identify your LLC for tax purposes, the Internal Revenue Service assigns a nine-digit Employer Identification Number (EIN). You can apply for your EIN either by mail or online.
An EIN is used for the following purposes:
- Manage state and federal taxes
- Create a business bank account
- Hire employees
Get an EIN Number in Idaho
Getting an EIN number is easy and free, There are two ways to get an EIN number in Idaho.
The 1st option is:
Apply online for an EIN from the IRS
The 2nd option is:
Get an EIN by Mail or Fax
Address to Mail
Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
An EIN is required for any LLC with employees or more than one member. The Internal Revenue Service (IRS) requires this.
When you apply for an EIN, you will be informed of the various tax classification options available to you. The default tax status is chosen by the majority of LLCs.
Some LLCs, on the other hand, can reduce their federal tax liability by electing the S corporation (S corp) status.
When converting from a sole proprietorship to an LLC, the IRS requires a new EIN.
An EIN can be obtained from the IRS for free. The process of obtaining an EIN is easy and can be done online or by mail.
Step 7. File Annual Report
All Idaho-based LLCs are required to file an annual report with the Secretary of State. One to two months before the report is due, the Secretary of State sends an email reminder. The report must be filed online.
Fee: Free
Due Date: By the end of the month in which the LLC was formed, the payment is due.
Late Filings: Failure to file an annual report can result in an LLC being dissolved after 60 days.
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What to do After Forming Your Idaho LLC
Keep your personal and business assets separate
Your personal assets (such as your home, car, and other valuables) may be at risk when your Idaho LLC is sued if they are mixed with your business accounts.
Here are some steps you can take to protect your LLC in Idaho:
1. Create a Business Plan:
If you have decided that a Idaho LLC will be a good choice for your business in Idaho, your next step is to create a business plan (although it is not required), so that you have a roadmap for what you will do and how you will accomplish it.
Free: Business Plans Examples
Do you need help creating a business plan? Check out these six free, proven business plan examples from different industries to help you write your own.
2. Open a Bank Account
As soon as your LLC is officially formed, you should open a business bank account. Why? Keeping separate bank accounts will help you maintain the legal distinction between the LLC and you (the owner).
Because LLCs are limited liability companies, creditors and litigants can’t take your assets.
It is essential for small business owners to partner with the right bank. Find out which banks offer the best business checking accounts, have low or no fees, ATM accessibility, and interest-earning accounts as well as online or mobile banking tools.
Recommended: Check out our business bank account page to learn which banks offer the best business check accounts, ATM access, interest-bearing accounts, and online and mobile banking options for businesses.
3. Obtaining a business credit card:
- Allows you to separate personal and business expenses.
- Develops your company’s credit history, which can be helpful to raise capital (e.g., small business loans) later.
4. Hiring a business accountant:
- It prevents your business from overpaying taxes while preventing penalties, fines, and other costly tax mistakes.
- Gives you more time to focus on your growing business by simplifying bookkeeping and payroll.
- Manage your business’s funding more effectively. Find out where extra profit or loss can be made
Getting Business Insurance for Your LLC
You can manage risks and grow your LLC with business insurance. Here are the most common types:
- General liability insurance protects your business from lawsuits. Most small businesses purchase general liability coverage.
- Professional liability insurance protects professionals and businesses from claims of negligence from their clients or customers. Liability insurance typically covers negligence, copyright infringement, personal injury, and more.
- Workers’ compensation insurance: Covers illnesses, injuries, and deaths resulting from a worker’s work.
Ready to Protect Your Business
Let us help you with your business insurance needs.
- General business liability insurance
- Medical insurance
- Term life insurance
- Workers’ Comp
- Surety bonds
- Commercial auto
Create Your Business Website
A website is an important step in legitimizing your business. It is essential for all businesses. You are missing out on a large percentage of potential customers and revenue if you don’t have a website, even if your business is too small or in an offline industry.
More than 90% of consumers begin their search for products and services online. If you don’t have a website that is ready to welcome your customers, then they will simply find your competitors.
Here are the main reasons why you shouldn’t delay building your website:
- Every respectable firm has a website. When it comes to getting your firm online, size or sector isn’t a concern.
- Creating a basic website has never been easier, thanks to website builder tools like the GoDaddy Website Builder. To design a website, you don’t need to hire a web designer or developer.
Recommended: If you want to enhance your conversion rates and maximize revenue in order to help expand your business and meet objectives, you should always hire a professional business website design company to build your business website.
Wise Business Plans is a leading web design company, We have created over 2000 + websites across 20 countries for our clients but we are physically based in 7 major cities in the United States including Alabama web design, Pennsylvania, Las Vegas, Colorado Springs, Iowa, Michigan and San Diego.
Idaho in LLC FAQs
The Certificate of Organization costs $100 to file online and $120 to file by mail, according to the Idaho Secretary of State. For $20, you can reserve the name of your LLC with the Idaho Secretary of State.
For small businesses, a limited liability company (LLC) provides liability protection as well as tax advantages. In Idaho, forming a limited liability company (LLC) is easy.
Mail Filing: Approval of mail filings for Idaho LLCs takes about 2-3 weeks in total. This includes the processing time of 7-10 business days as well as the time your documents are in the mail.
Online Filing: Approval of online filings for Idaho LLCs takes 7-10 business days in total. There is no additional transit time because you can download your documents as soon as they are approved.
Sign in to your SOSBiz account and select “terminate business” to dissolve your Domestic LLC in Idaho. Alternatively, you can mail, fax, or deliver the completed Statement of Dissolution Limited Liability Company form in duplicate to the Secretary of State.
You must file an Amendment to Certificate of Organization with the Idaho Secretary of State to amend your Certificate of Organization for an Idaho LLC. Depending on how you file, you’ll also have to pay a $30 online filing fee or a $50 paper filing fee.
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