According to the US Chamber of Commerce, by the end of 2023, new business applications in Idaho had increased by over 10% compared to 2022, ranking the state at No. 17 nationwide. With few regulations and taxes, Idaho is a good place for new business owners. This step-by-step guide can help you set up your Idaho LLC smoothly.
Step 1: Name your Idaho LLC
Step 2: Choose a Registered Agent
Step 3: File an Articles of Organization
Step 4: Received a Certificate From the State
Step 5: Create an Operating Agreement
Step 6: Get an Employer Identification Number
Step 1: Name your Idaho LLC
When starting your business in Idaho, you must pick a name first. There are a few essential requirements to keep in mind:
- Your business name contains “limited liability company,” “LLC,” or “L.L.C.”
- It must be unique and not already used by another business in Idaho. You can check the Secretary of State’s website for name availability.
- Avoid using words that imply your business is a government agency (e.g., State Department, CIA, FBI, Treasury).
- Some words, such as “bank,” “lawyer,” “attorney,” “credit union,” etc., may require additional paperwork or licensing. Idaho’s official website has a complete list of business naming rules.
Additional considerations:
Reserve your name: In Idaho, you can reserve names for up to 120 days by paying the fee and submitting the appropriate form to the state authority. You can reserve a name by submitting a Reservation of Legal Entity Name with the Secretary of State, which can be done online or by postal mail, with a filing fee of $20 ($40 for mail filings).
Website domain: Even if you’re planning to wait before creating a webpage, securing your domain name is a good idea now. Before settling on your LLC name, check if your desired URL is available and suitable.
Step 2: Choose a Registered Agent
To start an LLC in Idaho, you must have a designated agent for the service of process within the state. This individual or business entity accepts legal documents on behalf of the LLC if it faces a lawsuit. Here are the criteria for the registered agent:
- The agent must be a registered entity or company offering registered agent services.
- They must have a physical address in Idaho.
- The agent must be available to accept legal documents in person during regular business operations. A list of registered agents is available online.
Step 3: File an Articles of Organization
To set up an LLC in Idaho, you must submit a Certificate of Organization of a Limited Liability Company to the Idaho Secretary of State. You can do this online or by mail. The filing cost is $100, or $120 for mail submissions, payable by credit card.
Your Certificate of Organization should include:
- LLC name
- The principal address of the LLC
- Name, address, and signature of the agent
- Name and address of a “governor,” who can be a manager or member depending on the business management structure
- Date of LLC formation
- Signatures of the organizers
If you have a foreign LLC (from another state) and want to do business in Idaho, you must complete a Foreign Registration Statement, which costs $100 to file and $20 to process.
Step 4: Received a Certificate From the State
After the LLC’s formation documents are submitted and authorized, the state will issue a certificate verifying the LLC’s establishment. This certificate allows the LLC to obtain an Employer Identification Number and business licenses and open a bank account.
Step 5: Create an Operating Agreement
Although not required by law, creating a thorough LLC operating agreement is strongly advised for all new limited liability companies when you start an LLC in Idaho.
This agreement should:
- Describe the business structure of the LLC.
- Define the responsibilities and duties of LLC members.
- Outline how the business will operate.
With such an agreement, the LLC might avoid legal and operational issues.
Step 6: Get an Employer Identification Number
The Internal Revenue Service will assign you a nine-digit Employer Identification Number (EIN) to identify your LLC for tax purposes. You can obtain your EIN through the IRS either by mail or online.
An EIN helps with:
- Filing and managing taxes at state and federal levels.
- Opening a bank account.
- Hiring employees.
The IRS website allows you to get an EIN for free. Once you submit the form, you’ll receive your number immediately.
LLC State Guides
FAQs
What’s the cost of forming an LLC in Idaho?
You can start by submitting the Certificate of Organization online with the Idaho Secretary of State for $100 or through mail for $120. You can reserve your LLC name with the Idaho Secretary of State for $20.
How long does it take to create an LLC in Idaho?
If you file online, you can obtain an LLC in Idaho within 5-7 business days. However, the process may take 2-3 weeks if you prefer to file by mail.
Do Idaho LLCs submit an annual report?
Yes, Idaho LLCs are required to complete a yearly report.
Is residency in Idaho necessary to form an LLC?
Idaho doesn’t mandate that LLC members or managers be state residents. Anyone can create an LLC there, regardless of their residency. However, your LLC must have a registered agent with a physical address in Idaho to manage legal documents and official correspondence.
