How to Start an LLC in Idaho

Key Benefits

1

Personal Asset Protection

An LLC provides a legal barrier between your personal assets and business liabilities, protecting your savings, home, and other personal property from business debts and lawsuits.

2

Tax Flexibility

LLCs offer pass-through taxation by default, meaning business income passes through to your personal tax return, avoiding double taxation while providing options for how you're taxed.

3

Management Freedom

Idaho LLCs provide flexibility in management structure, allowing you to choose between member-managed or manager-managed operations to suit your business needs.

How to Form an LLC in Idaho in 3 Steps

Select a Distinct Name for Your LLC

Selecting the perfect name for your LLC is the first crucial step. The name should be distinctive and not previously used by any other business entity in Idaho. You can check your preferred LLC name by conducting a name search on the Idaho Secretary of State's website.

Required Words: The name must contain "Limited Liability Company" or an acronym like "LLC," "L.L.C.," or "Ltd."
Prohibited Words: The name shall not contain terms that may cause confusion with an agency of government, such as "FBI," "State Department," or "Treasury."
Restricted Terms: Terms such as "Agency," "Board," or "Commission" are not allowed except with the authorization of the state.
Domain Name: It's a good idea to check the availability of your domain name at the same time to avoid missing out on a website domain that may align with your business name.

Select a Registered Agent

All Idaho LLCs must maintain a registered agent. The registered agent receives vital legal and tax documents on the LLC's behalf. This individual or service also is the primary point of contact with the Idaho Secretary of State.

Self-Appointment or Professional Service

You can use your own registered agent, you can designate one of the members of your LLC, or employ a professional registered agent service. Having a professional service guarantees that your LLC complies with the state laws and helps you organize any necessary papers and mail.

Idaho Requirements

You must have a physical Idaho address. You need to be open during normal business hours to accept papers. Needs to be able to submit a signed consent form to serve as your registered agent.

Suggested Registered Agent Services

ZenBusiness

ZenBusiness is an affordable and trusty service to register your LLC and receive registered agent services in Idaho. They charge $199 per year for their registered agent service and have an easy-to-use virtual dashboard to keep track of your business documents.

Easy LLC registration process.
Compliance assistance to get your business state-compliant.
Excellent rating and customer feedback.

Disadvantages: Does not offer nonprofit LLC services.

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Northwest Registered Agent

Northwest Registered Agent has been around for over two decades and offers registered agent services for businesses in Idaho and across the country. They provide a secure online portal to manage your documents.

Transparent pricing of $125 per year.
A+ Better Business Bureau rating.
Strong data security practices.

Disadvantages: Higher incorporation costs compared to some competitors.

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File the Articles of Organization

After you have selected your LLC name and registered agent, you can actually file the Articles of Organization with the Idaho Secretary of State. You can do either online or by mail.

Filing Fee

The filing fee for Idaho Articles of Organization is $100.

Expedited Processing

For expedited service, you can pay extra for expedited processing at a rate of $40 for 8-hour turnaround or $100 for same-day processing.

Filing Methods

Online Filing: This is the fastest way and usually takes around 7-10 business days for regular processing.
Mail Filing: If you prefer to file via mail, mail your documents to:
Office of the Secretary of State
450 N 4th Street
PO Box 83720
Boise, ID 83720-0080

What to Do After Your LLC Is Registered

Once your LLC is registered, there are a few things you can do to make your business run smoothly:

Keep Personal and Business Finances Separate

Keeping your personal and business finances separate is important. Open a separate business bank account so that your personal and business funds are not confused.

Hire an Accountant

Your business accountant will assist you with your finances, prevent tax penalties, and guarantee compliance with federal and state tax laws.

Obtain Business Insurance

Insure your LLC against possible lawsuits with business insurance. Depending on your business, have general liability insurance, workers' compensation, and other coverage.

File Annual Reports

Idaho LLCs must file an annual report with the Secretary of State. The annual report is due on the anniversary date of your LLC's formation. There is no fee for filing the annual report, but not filing could lead to penalties.

Frequently Asked Questions

What is the filing fee to form an LLC in Idaho?

The fee to file the Articles of Organization is $100. Expedited filing is an additional cost of $40 for 8-hour filing or $100 for same-day filing.

Do I need a DBA (Doing Business As) name for my LLC?

In Idaho, you don't need a DBA unless you're going to conduct business in a name other than your LLC's legal name. Filing for a DBA is beneficial if you're going to conduct business in another name than what is filed with the state.

How long will it take to process my Idaho LLC registration?

It usually takes 7-10 business days to process your LLC filing if you file online. If you require more expeditious service, you can pay extra to have it processed quicker.

Can I be my own registered agent in Idaho?

Yes, you can be your own registered agent in Idaho if you have a physical Idaho address and are accessible during business hours to accept legal documents.

Is an Operating Agreement necessary in Idaho?

An Operating Agreement isn't legally necessary in Idaho, but it's strongly advised. This is a document that specifies the management of your LLC and operating process, which prevents conflicts between members and the successful running of your business.

Do I require an EIN (Employer Identification Number) for my Idaho LLC?

If your LLC will have employees or if you have more than one member, you will require an EIN from the IRS. An EIN is also necessary for a business bank account.

Are Idaho LLCs required to file reports each year?

Idaho LLCs must file an annual report with the Secretary of State. The annual report is due on the anniversary date of your LLC's formation. There is no fee for filing the annual report, but not filing could lead to penalties.

Can I file my LLC online in Idaho?

Yes, you can fill out and submit your LLC registration online at the Idaho Secretary of State's website. Online registration is the quickest method of establishing your LLC and is strongly urged for the majority of businesses.

Ready to Start Your Idaho LLC?

Establishing your LLC in Idaho is a straightforward and easy process if you approach it the right way. With a proper name, registered agent, and filing process, you can get your business established for success and protection in the long run.

Get Started Today