Potatoes. Gems. Scenic mountain landscapes and Hells Canyon. Idaho is known for many things including supplying most of the nation’s trout.
Due to its thriving tourist, aerospace, and technology industries, Idaho is a popular choice for aspiring entrepreneurs looking to establish a limited liability company. To find out how you can setup your Idaho LLC, read on.
LLCs provide small businesses legal liability protection and preferential tax status, among other benefits. After deciding an LLC is the best corporation for your needs, follow these measures to get it operational in Idaho.
Note that you have the option of forming the limited liability company (LLC) yourself, or you may hire a professional business setup service to do all of the legwork on your behalf.
1. Give Your LLC in Idaho a Name
Be careful you select a name that satisfies the naming standards for an Idaho LLC and is simple for prospective customers to locate using search engines.
Be sure to abide by the following naming guidelines:
- You are required to have the word “limited liability corporation” or one of its acronyms included in the name of your business (LLC or L.L.C.)
- You are not allowed to use any terms in your company’s name that might lead to confusion with a public entity (FBI, Treasury, State Department, etc.).
- Words that are considered restricted, such as “bank,” “attorney,” and “university,” may need extra documentation and the incorporation of a licensed professional as a member of your limited liability company (LLC).
Carry out a search using the name
You may check to see whether the name you want is available by performing a name search on the official website of the State of Idaho.
Make a name reservation for your Idaho LLC
In order to establish an Idaho limited liability company (LLC), you will be required to pay between $100 and $120 to the Secretary of State to submit the Certificate of Organization.
You have the option of applying in person, online, or via the mail. The legal document known as the Certificate of Organization is the piece of paper responsible for the formal establishment of your Idaho Limited Liability Company.
2. Select your Idaho Registered Agent
A registered agent in Idaho is required of every limited liability company operating in the state. If the limited liability company (LLC) is taken to court, this refers to a person or company that has agreed to accept service of process on its behalf.
The Registered Agent might be either a resident of Idaho or a commercial organization that is permitted to conduct operations in the state. It is required that the Registered Agent have a real, physical address in the state of Idaho.
What exactly is the role of a Registered Agent?
A Registered Agent receives tax forms, legal paperwork, lawsuit notices, and government communication on your business’s behalf. Consider the role of your registered agent as that of the point of contact for your company with the state.
Who should serve as your Registered Agent?
A Registered Agent in Idaho has to be either a person who lives in the state on a permanent basis or a company that is legally permitted to operate inside the state’s borders and act as a Registered Agent. You have the option of selecting anybody who works for the organization, including yourself.
3. Submit your Idaho Certificate of Organization filing
To make your limited liability company (LLC) legal in the state of Idaho, you need to fill out the Certificate of Organization and submit it to the Idaho Secretary of State.
You have the option of submitting the Certificate of Organization electronically or on paper; there is a charge associated with filing it either way. In order to submit documents online, you will need to register an account with Idaho SOSBiz. This account will allow you to submit a variety of different forms.
In order for your Articles of Organization to be valid, you’ll need to contain the following info:
- Your company’s name in its entirety: Include an identifying mark such as “LLC.”
- Close LLC: If you wish to create an Idaho Close LLC, make sure the box is checked.
- Information about the registered agent: Include the name and street address of your registered agent in your document. Post Office Boxes are only allowed to be used in conjunction with a traditional street address.
- Address for postal mail: This might be a post office box.
- Consent to receive legal documents by email: This is the email address that the State Secretary will use to send legal notifications to your organization in the event that your registered agent cannot be contacted.
- Signature of the LLC organizer: Whoever is responsible for preparing and filing this document
- Principal address: This should be an address in the state of Idaho.
- Permission for the registered agent: The Articles of Organization include this form, which has to be completed by your registered agent and is then attached to the document.
- Individual to contact: This individual will be notified by the Secretary of State if there is a problem with the Articles of Organization for your company. You are required to supply a name, a phone number, and an email address.
4. Obtain a Certificate From the State
After the formation paperwork of the limited liability company has been submitted with the state and been given its approval, the state will offer you a certificate that verifies the LLC’s official existence. You will get a receipt, a Letter of Acknowledgement, and a copy of your Articles of Organization that has been postmarked by the Secretary of State’s office in Idaho.
It is probable that these papers will be sent to the postal address that is recorded for the registered agent by the Secretary of State.
5. Draft an Operating Agreement for Your LLC
Even while establishing a detailed LLC operating agreement is not a legally required stage in the process of incorporating a limited liability company in the state of Idaho, it is highly suggested for all new limited liability firms.
The following items should be included in the operating agreement:
- Describe the business structure of the limited liability company.
- Determine the specific duties and commitments that each member of the limited liability company (LLC) has
- Lay out the operational structure of the LLC.
A limited liability corporation (LLC) may face legal and practical issues without an operating agreement.
6. Obtain an EIN tax ID
A number of limited liability companies (LLCs) will be required to get a Federal Employer Identification Number (EIN), often known as a tax ID number.
An Employer Identification Number (EIN) is a nine-digit number that identifies your company to the Internal Revenue Service. You need an EIN in order to pay federal employer taxes, open a bank account such as a Bluevine bank or Novo checking account or recruit staff.
On the website of the Internal Revenue Service (IRS), which is accessible without charge, you may check to see whether you need an EIN and submit an application for one online.
The vast majority of companies are required to obtain an EIN, although a significant exception is provided for single-member limited liability companies, which are permitted to use the owner’s Social Security number instead.
Depending on the kind of company they run and the geographic region in which they operate, some limited liability companies (LLCs) may be required to get one or more business licenses, permits, or certificates from the state or local government.
You may get information about business licenses, permits, and certificates that are granted by the state of Idaho by going to the State of Idaho Business Wizard.
Contact the city clerk’s office in the municipality where your limited liability company (LLC) is situated and inquire about the local licensing rules. Additionally, find out whether your LLC will need to apply for any licenses in order to lawfully do business in the region.
7. Yearly Filings for your Company
LLCs in the state of Idaho are obliged to submit an annual report to the state. Because of this yearly report, your company’s information will always be up to date, and the state will always know who to reach out to if they have questions or concerns about your company. There is no cost associated with submitting Idaho’s yearly report.
The anniversary of the month in which your company was established is the due date for your annual report. For instance, if you started your limited liability company on the 12th of March, the following year, your annual report would’ve been due on the 31st of March.
What are the costs and the next step?
The state costs for incorporating an Idaho limited liability company may run anywhere from $100 – $140, based on criteria such as the type of filing that you pick and whether or not you want to reserve a business name.
The fee will increase much more if you want to expedite the file. Keep in mind that the filing fees may shift over time; thus, consult the website of the Idaho Secretary of State for the most up-to-date filing fee schedule.
These are the first expenses; the total will be far more. When you include in the price of establishing a company in Idaho, which includes the cost of charges for licenses, permits, and insurance, the total cost quickly mounts up.
What Comes Next?
When you register a limited liability company (LLC), you establish a legal basis upon which to operate your firm. Companies should make it a priority to maintain their limited liability company in compliance with state regulations and in an active position on the state’s website.
In addition, having a registered limited liability company enables you to perform the following:
- Register your company with the department of revenue in your state.
- Create a bank account for your company.
- Obtain any permissions or licenses that are required to run your business, such as those issued by the health department, the zoning department, the department of home occupations, the department of professional licensing, and so on. Some states need a seller’s permission to conduct sales
- Create a credit card account for your company.
- Invest in insurance coverage for your company.
- Create a trademark to protect both your company’s name and its logo.
Form an LLC yourself or hire a professional?
To establish a limited liability company (LLC), you are not required by law to consult a lawyer. The majority of states enable the establishment of LLCs via the process of registering the business entity on the website of the secretary of state and with the Internal Revenue Service (IRS).
If you are not acquainted with the process of forming an LLC, your best bet may be to find a professional LLC setup service so that you can be certain that the creation will go smoothly and quickly.
When entrepreneurs start a new firm, they may save startup costs and save valuable time by using a professional agency that specializes in company forms. They can take care of the things that you might not have time to think about for a price ranging from $50 to over $500, and some examples of such things are as follows:
- Developing an operating agreement for an LLC that details your company’s details and putting it into writing (required in some states).
- putting together articles of incorporation that identify the management of the LLC, the registration agent, and the date the company was formed.
- Taking up the role of registered agent for your firm.
- Keeping careful records in the event that there are investigations or litigation.
- Payment of filing fees and registration with the appropriate parties.
- registering the name of your company and ensuring that the name you choose for your limited Liability company is accessible.
- Finishing up and turning in all of the necessary legal and formation documentation.
What are the requirements to form an LLC in Idaho?
You will need a registration fee, a name for your limited liability company (LLC), a Registered Agent, Articles of Organization, an Operating Agreement, and an EIN number from the Internal Revenue Service in order to establish an LLC in the state of Idaho.
How much does it cost to form a limited liability company in Idaho?
Online filing of the Certificate of Organization costs $100 in Idaho; mailing it costs $120. Idaho’s Secretary of State will reserve your LLC’s name for $20.
How are LLCs taxed in Idaho?
In Idaho, the tax rate on corporate income is normally a flat 7.4%, with an extra $10 tacked on. When an LLC makes the choice to be treated as a corp, rather than the pass-through tax position that is the norm, the firm itself is required to submit a separate tax return.
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