Idaho LLC Formation Guide

This guide to setting up an LLC Idaho provides detailed instructions on how you can file documents for formation, get tax IDs, set up company records, and more.

Overview

LLCs are the most common business structure. They are cost-effective, flexible, and easy to operate. The legal formation of an LLC allows you to establish your business, limit your personal liability, and gives you tax flexibility. You will find the steps below helpful as you complete this process.

Step-by–Step Idaho LLC Directions

  1. Check Name Availability

    Your LLC’s legal title may not conflict or be confused with any other registered name. Conduct a name look to verify availability.

    Name Search Idaho Secretary to State

    Name searching

    Name Reservation Optional
    Suffix: A limited liability company must be named with the phrase “limited liability firm” or “limited company” and the abbreviation L.L.C.,” L.L.C.,” L.C.,” L.C.,” L.C.,” L.C.,” L.C.,” L.C.,” LC,” or LC. “Limited” could be abbreviated “Ltd.,” while “company” might be abbreviated “L.L.C.,” “LLC,” or “LC.”

    Idaho Statutes: SS 30-31-302

  2. Nominate a registered agent

    Before you file to form your Idaho LLC you must decide who your Idaho registered representative will be. Registered agents allow a business to be notified of legal and government notices.

    A registered agent is required by law in every state. The Idaho Secretary of state will designate the registered representative when you file Idaho articles.

  3. Idaho Certificate for Formation

    Register the articles to form a limited liability corporation.

    Agency: Idaho Secretary to State
    Form:
    Certificate of Organization Limited Liability Company
    Filing Method Online and mail.
    Agency Fee $100 + optional $20 expedite fees
    Turnaround: ~1 week. 1 week.
    Law:
    Idaho Statues, Title 30: Corporations. Chapter 6 Idaho Uniform Limited Liability Company Act
    Notes: Send 2 copies.
  4. Establish Company Records

    Your LLC must keep accurate records and books. Your LLC’s documents begin with your filed articles. Other records will be created by your LLC, including:

    • Minutes of a meeting
    • Operating agreement
    • EIN verification letter
    • Amendments and other filings made during the LLC’s lifetime

     

  5. Sign the Operating Agreement

    You can draft an Operating Agreement by using a template. This is the governing document that governs the LLC. It describes the details of how the LLC operates, such as the holding of an annual meeting. The agreement will then be approved by you at your organizational meeting.

  6. Host the Organizational Meeting

    The organizational meeting is a first meeting of LLC members. For this meeting you will need your operating agreement as well as your filed articles. Keep a log of the meeting, and save it in your company’s record book.

  7. Get a Federal Employee Identification Number (EIN).

    EIN is required if your LLC employs more than one person or has multiple members. EINs are also required to open bank accounts.

    Agency: Internal Revenue Service
    Form:
    IRS SS-4
    Filing Method Mail, phone, or Online.
    IRS fee $0
    Turnaround: Instantly online or by telephone 4 business day by fax. 4-5 weeks by postal mail
    Notes: The IRS website can only be accessed during specific hours. Before closing your session you should print your EIN. For more guidance, see IRS Publi 1635: Understanding Your.
  8. Idaho State Tax Identification Nos/Accounts

    You will need an Idaho seller’s permit if your LLC does retail sales. Idaho withholding accounts are required for any employees. Register for Idaho tax accounts online. You can register your LLC online with the Idaho Department of Labor.

    Submit to
    Idaho State Tax Commission

    http://tax.idaho.gov/

    Filing Method

    Online Idaho Business Registry System and Permit/Account App
    Fee:
    $0
  9. Consider Electing C-Corp taxation or S-Corp taxation

    Your LLC automatically receives pass through taxation. The vast majority of LLCs however, keep this tax category. Some LLCs have the option to choose S-Corporation or C-Corp tax treatment.

    • S-Corp may be able to help owners who earn more that $75,000 per calendar year in saving on self-employment taxes.
    • C-Corps have double taxation. Members pay taxes on the profits of the corporation, while members pay taxes when they receive their distributions. C-Corps can offer lower tax rates to retained earnings.
  10. Get business licenses and permits

    The necessary licenses or permits are required in order to operate your business legally. Searching by business type and location using the Small Business Administration Business License & Permit search tool is the easiest way to navigate the vast array of federal, state, or local requirements.

    Idaho Business License

    NOT REQUIRED

     

    Idaho does not require the licensure of general business licenses.

    Idaho doesn’t have a general business license, but it does require local licenses.

  11. Keep your LLC afloat with ongoing filings

    Federal and state tax returns must be filed.

    A lot of states also require businesses to file an annual reporting to maintain good standing with their secretary of state. View the table below to see if an annual report is required by Idaho LLCs.

    Idaho Corporation Annual Information Requirements

    Agency: Idaho Secretary to State
    Form: You can request a copy of the Secretary-of-State’s report by mail.
    Filing Method Mail or online .
    Agency Fee $0
    Due: Annually by the last date of anniversary month. You must submit your annual report if foreign-qualified or incorporated on March 15th.
    Law:
    Idaho Statutes: SS 30-21-213.
    Penalties: No late fee. The secretary will dissolve or cancel your business after 60 days.
    Notes:
    • Anyone may file if they have authority.
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