How to Form Your C Corp in Idaho

Select a C corp name

The first step towards forming any new Idaho C corp should be picking a name for the company. This name must be unique and memorable while explaining your business’s services or products. The name should include a term like “C corp” or “Corporation” to correctly identify it. You can review in-use business names on Idaho’s Business Search website.

You should reserve your company name using Idaho’s name reservation services. This reservation can last up to four months and costs $20 online or $40 through mail.

File the Articles of Incorporation

Once you complete the previous steps, you must file your Articles of Incorporation. You will need your business’s address, name, registered agent information, and other essential information to complete this document. Filing the Articles of Incorporation is crucial because they tell the government about your business and its operations.

Filing your Articles of Organization will cost $100 online and $120 through mail.

Appoint a registered agent

All C Corps in Idaho need a registered agent to receive the legal documents for the C Corp. The only requirements for your agent are that they must be available during business hours and have a physical address in Idaho. Your agent can be a friend, a professional corporation, or yourself, though we recommend you hire a professional for legal safety.

Stay compliant with annual reports

Annual reports provide the government with updated information about your business’s activities and details. In Idaho, every C corp must file an annual report online with the Secretary of State each year by their establishment anniversary date.

Filing your annual reports is free in Idaho.

Form corporate bylaws

Although forming Corporate Bylaws is not a legal requirement in Idaho, it is still vital. Corporate bylaws outline your company’s internal rules, procedures, and operations. They also tell the organization’s members their roles and powers. 

After creating these bylaws, the company’s board of directors must adopt them before they can be implemented. Be sure to discuss your bylaws during your company’s first organizational meeting.

Acquire your Employer Identification Number (EIN)

Like all business entities, C corporations in Idaho must get an Employer Identification Number (EIN). This number will allow business owners to complete necessary business activities such as payroll, opening business bank accounts, and reporting their taxes. 

Applying for your EIN is free through the IRS’s website.

Obtain business licenses and permits

While Idaho does not require you to have a state general business license to operate, your C corp might need to apply for other types of licensing. The location of your C corp and the industry you choose to enter could mean you need to apply for additional local or industry-specific licenses. For example, a food truck business in Idaho will need a Mobile Food Establishment License.

Be sure to check with Idaho’s Business Wizard for more information on licenses your company may need.

• Limited liability protection: A key advantage of an Idaho C corp is the protection of its members’ assets. Limited liability ensures the owners’ assets cannot be seized to cover the business’s legal issues or debts.
• Flexible ownership: C corps can benefit from having unlimited shareholders. Raising funds and scaling the company is much more straightforward because there is no cap on the business’s number of investors.
• Public perception: C corps have a more established and professional image than sole proprietorships and partnerships. This credibility makes it easier to attract investors and builds greater trust with customers.

• Tax benefits: Idaho has a relatively low corporate income tax rate compared to other states at 5.8%, allowing businesses to retain more earnings. C corps can deduct business expenses like operating costs and salaries, reducing the taxable income they receive.
• Access to capital: C corporations have the option to issue stock as a way to fund or expand their operations. More trustworthy incorporated businesses will have an easier time finding investors to sell their stocks to.