Forming an LLC (Limited Liability Company) in Idaho is easy and affordable. The following are few procedural steps on how to start an LLC in Idaho. LLCs forms in two ways, domestic and/or foreign. Suppose you plan to set up an LLC in states other than Idaho, then visit How to Start an LLC.
On this page, you’ll learn about the following:
How to Start an Idaho LLC
Suppose you’re planning to invest in some profitable business or maybe about to set up your business in Idaho. In that case, forming an LLC in Idaho is the simplest option for you.
An LLC or a Limited Liability Company is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It offers personal liability protection as your personal assets are separated from your business assets. This section gives you a step-by-step guide on How to Start an LLC in Idaho.
Step 1: Decide a Name for Your LLC
If you are to start an LLC in Idaho, the first thing you do is decide on a business or company name, and how to name your LLC may be tricky. Thus, you have the option to choose a name that complies with the Idaho business naming requirements. It must also be easily searchable for potential clients. Here is a step-by-step guide to follow when naming your Idaho LLC.
Why do you need a proper business name?
If you want your LLC to have special identification, your company name is essential. However, many people face many issues by avoiding focus on choosing a business name for their LLC business formation filings.
Because of this, here are some of the major benefits of choosing the best LLC corporate names.
- To help establish a company’s presence in the market, a proper business entity type will help you. This also creates a new identity that will resemble your LLC.
- After you’ve properly chosen the name for your LLC, you will have no problems finishing the registration process.
- You can only get the EIN when you have your name registration certificate with you.
What are the requirements when deciding a name for your LLC?
A name search is vital to make sure your business’ name is unique. Check the availability of your name with Business Entity Search on the Idaho Secretary of State’s website. Reserve the name by completing the Name Reservation Request Form for Domestic or Foreign Entities.
- Don’t include words that could confuse potential customers about your company. Words like ‘treasury, state department.’
- You should also avoid restricted words like ‘bank, attorney, university,’ because they may require a lawyer and more paperwork.
- As for a business website and your URL name, check if your name is still available for domain use with NameCheap.
Reserve a business domain
Even if you don’t have plans to set up a website today, it will help if you buy a domain to avoid others from using your name for their website, so do visit NameCheap for your domain name and Kinsta for web hosting.
If you have decided on your URL name and have reserved it, set up a professional email account with Google GSuite.
Step 2: Assign a Registered Agent in Idaho
A registered agent, for service, is a person or business entity that will act or work on your behalf. This person or business will receive significant tax forms, legal documents, a notice of lawsuits, and other official government correspondence in Idaho. Choosing Idaho-registered agents for your LLC is required.
Make sure the registered agent service you get has a business address or a home address in Idaho. It could also be a business. Here are the recommended agents and employees for you:
LLC Service | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $49 + State Fees |
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FAST SERVICE  | $299 + State Fees |
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 | $399 + State Fees |
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These five LLC formation services are recommended registered agent service providers authorized to conduct business in Idaho. Compare them to check the best yet cheapest option for you. Besides, they can guarantee you professional service because they have been in the business for years.
Step 3: File Certificate of Organization in Idaho
A Certificate of Name Reservation is needed to file a Certificate of Organization, which costs $100-$120. You need to make reports of this certificate with the Idaho Secretary of State. You may file them online or by mail.
This Certificate of Formation is a legal document that forms your business officially. It will indicate details about your LLC in Idaho, like if it is a member-managed or managers-managed.
Before you start filings, you must already have your LLC name and registered agents or employees. You will attach a copy of your Name Reservation Certificate along with a list of the professional services that your Idaho Limited Liability Company will offer.
How to File Online
Go to the Secretary of State Online Service. Select “non-subscriber.” Fill out the online forms. The website will alert you if your county does not support online filings after selecting your principal county.
Step 4: Create Your Idaho LLC Operating Agreement
An operating agreement is a document that legally outlines the proprietorship and operating procedures of your LLC. This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
Starting an LLC in Idaho does not require you to have an operating agreement, but it is ideal to have one that contains all your details of business operation.
Step 5: Filing a Idaho LLC EIN
The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify types of business for tax purposes. It is like a Social Security number dedicated to a business.
It is also called a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN). You will need this number for tax filing and to determine tax classification options.
Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Fax: (855) 641-6935
Fee: Free
After Starting your Idaho LLC
After forming your LLC, there are still some things that you will need. Take note of the following:
- Get a company business account
- File Idaho business permits & business licenses
- Get liability for business liability insurance with coverage for employees
- File an Idaho LLC Annual Report or biennial report
- Already existing LLCs that wish to operate in Idaho must register as a foreign Idaho LLC.
This page has provided you with steps to LLC forms and filing processes. You now have to remember upcoming filing deadlines for taxes and business licenses, and filing fees or filing costs, including fees for late filings, to make sure your LLC is up-to-date.
Why an LLC in Idaho
If you have the name of state Idaho in your mind for LLC and want to know the benefits, you will surely enjoy it if you go to Idaho; here is the detail.
Lower Taxes
While starting an LLC, everyone tries out different ways to save money, and the biggest out of them is tax saving. This tax saving will be provided by Idaho LLC very efficiently.
Along with the division of the taxes in various slabs, the slab rates are lower than in other states. This will help in alleviating the gross business income of the members of Limited Liability Corporation. The property taxes are the second-lowest in Idaho which is attracting many businesses.
Robust State Budget
Budgeting of the state is not directly linked with the business incorporation, but indirectly it affects many aspects of a business. We all know that the only way through which government earns money is through taxation. Now, if the government lacks funds, then the taxes ought to increase a bit. But the same is not in the case of the Idaho government. The state budget is stable, having a strong past track record due to which it is not affecting the business in any way negatively.
Due to their strong budgeting, they also keep a thing of how they can increase the rate of projected jobs, and they are ranked number three in increasing the rates of jobs.
High Opportunities
The opportunity is a factor on which the future of the business depends. In Idaho, these opportunities are available in abundance. The environment is there may be competitive, but it pushes every LLC member towards their positive growth. This makes the economy of Idaho growth-oriented and helps out people grow. An example of the most significant opportunity is export. So, if you are somewhere related to export, then start an LLC in Idaho without wasting any bit of time.
LLC Member Enjoy Independence
In case the LLC has different partners, and one of them dies, then due to that, there will be little to no effect on the other LLC members. The functioning of Idaho LLC will be the same as it was before. This shows that no matter what happens to one stockholder, the other’s life and the business will remain unaffected.
Top 3 Businesses in Idaho
To form an LLC in Idaho is the best decision, but only in one situation. It would be best if you had a good business idea in your mind. To help you out in your journey looking for the best businesses in Idaho, we are here to help. Here is a list of the best businesses in Idaho.
Potato Cultivation and Processing
The state of Idaho is very well known for its potato production as the state’s soil offers the best environment for the crop to grow. More than 311,000 acres of potato is used for potato farming which produces around 15 billion pounds of potato. Due to such a huge industry, the demand is manufacturing units that can convert raw potato into a valuable product.
There are many industries related to potato product manufacturing to exporting, which you can decide from.
Chemical Production
Many famous chemicals named benzylamine, calcium hydroxide, morpholine, etc., are produced in the state. Many milestone companies like Redox Chemicals and Argon Bio-energy registered in the state, responsible for the country’s major chemical production. Moreover, with the increasing advancements, the demand for chemicals is increasing, for which more products and companies are required.
Wood and Lumber Production
Based on the recently launched data, the Idaho state’s wood industry contributes around 6.8% to the manufacturing GDP of the state, which is increasing continuously. Idaho’s paper industry is fulfilling the demand of its nearby states because of a dense forest cover in the state. Moreover, the state has the latest emerging technology due to which the waste of trees is better utilized in paper production, which can be the best business idea to opt for.
If you are thinking to invest less money, then you can opt for the following businesses.
- Tutoring business
- Advisory Firms
- Printing Business
- Boutique
Idaho LLC Formation Review
Time needed: 1 hour and 5 minutes.
To recap, here are the easy basic steps again when forming an LLC in Idaho. Click on the steps in this list to read the full detail.
- Name your Idaho LLC
The first thing you must do is to choose a company name, which should include the phrase “limited liability company,” or one of its abbreviations (LLC or L.L.C.).
- Choose a registered agent
In Idaho, it is mandatory to select a registered agent for your LLC. You can check out our list of our 5 Best LLC Services in the United States.
- File a formation certificate
Filing a formation certificate is necessary when forming an LLC. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Create operating agreement
An operating agreement is not a strict formation requirement but something encouraged when you start an LLC.
- Get an EIN
The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
F.A.Qs
A “domestic LLC” is one that conducts business in a state where it was formed. Meanwhile, a “foreign LLC” is an existing LLC that extended business to another state.
For Domestic LLCs, it is vital to have a Certificate of Name Reservation and Certificate of Formation. For the foreign LLCs, you must have a Certificate of Good Standing.
The cost to form an LLC varies per state.
Seldom do L.L.C.s use D.B.A. or a ‘Doing Business As’ name nor a fictitious business name. However, if you want to have one, you make read more about DBAs here.
This internal document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
>Your name should have “L.L.C. or LLC” or the phrase “limited liability the business.”
>Do not include words that could create confusion between your LLC and any government business.
>Words like ‘bank, attorney, university’ are restricted as well.
>Lastly, your name should distinguish from other limited liability corporations, limited liability partnerships, or registered limited liability partnerships.
Typically, you can file your LLC name online or by mail. Check with the state where you will set up your LLC name. Take note that the filing fees for business names may also vary per state.
As for a website and your URL name, check if your name is still available for URL use with NameCheap to see if your name is available as a web domain. Even if you don’t have plans to set up a website today, it will help if you buy a URL. Buying it can help to prevent others from getting your name; check out WPEngine, Kinsta, and GoDaddy for hosting and building your website.
No. Never mail these documents or payments to the Secretary of State directly.
The reason you might need an E.I.N. is that it would help for three reasons:
>Opening a business bank account
>Filing services and managing federal and state taxes
>Hiring employees or agents
You are not required a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with the service of process.
Note that an LLC is different from a sole proprietorship. If you already have an EIN for your sole proprietorship, the IRS will require you to get a new one when your convert to an LLC.
International EIN applicants do not need an SSN to get an EIN.
The IRS is the one that will issue your EIN. You can request an EIN from the IRS ONLINE or download the FORM, fill it out, and send it by mail or fax.