How to Start Your LLC in Idaho

Select an LLC name

The first step in your Idaho LLC incorporation process should be picking a name for the company. This name must be memorable for your customers while telling them what services or products you offer. The name should also include an identifying term like “LLC” or “LC” so customers and investors know what kind of company you are. You can review a list of in-use names on Idaho’s Business Filings website.

Idaho’s name reservation services can protect your chosen name from being taken during your incorporation process. This reservation costs $20 to file online or $40 through mail and lasts up to 4 months.

Appoint a registered agent

All LLCs in Idaho need a registered agent who receives legal documents for the LLC. Luckily, the requirements for a valid agent are straightforward. Your agent must be available during regular business hours and have a physical address in Idaho. You can choose anyone who fits these criteria as your agent, including friends, family, or even yourself. Hiring a professional agent instead of a personal contact is wise for legal safety reasons.

Submit the Articles of Organization

The next step on your to-do list should be filing your Articles of Organization. This document will tell the government about your business, operation, and goals. To complete this document, you will need your business’s name, address, registered agent information, and other important information. Completing and filing this document with the state will create your Idaho LLC.

Filing your Articles of Organization will cost $100 online or $120 by mail.

Form an operating agreement

Creating rules and regulations for your company will be essential if you want operations to go smoothly. While it is not a requirement in Idaho, you should form an operating agreement that details how your LLC functions. This agreement will also clear up any confusion amongst members about their rights and roles in the company.

Acquire your Employer Identification Number (EIN)

If your LLC has more than one member, you’ll need an Employer Identification Number (EIN), even if you don’t have employees. Single-member LLCs will also need an EIN if they hire employees or choose a different tax status. An EIN is essential for payroll, filing taxes, or opening a business bank account.

You can apply for your EIN for free on the IRS website.

Obtain business licenses and permits

While Idaho does not require a state-mandated general license for businesses to operate, your LLC might need specific licenses based on its location and industry. For example, a woodworking business in Idaho may need a wood product permit to store large quantities of construction wood, woodchips, or other related materials.

Be sure to consult your local city for more information on licenses you will need for your specific company.

Stay compliant with annual reports

Annual reports update the government on your business’s basic information and activities. Every LLC in Idaho should submit an annual report online to the Secretary of State each year on or before their anniversary of establishment.

Filing your annual reports in Idaho is completely free.

• Strong industry-specific support: Idaho offers many government support programs for companies looking to enter popular industries such as wood processing, agriculture, and technology.
• More professional appearance: Incorporating a business as an LLC makes it appear more trustworthy than sole proprietorships and partnerships. A more credible appearance makes it easier for LLCs to gain investors’ support and customer trust.
• Limited liability: An Idaho LLC’s owners enjoy protection over their assets. Limited liability protection will prevent the owners’ assets from being used to pay for the company’s legal debts or troubles.

• Tax flexibility and benefits: LLCs in Idaho have extra flexibility when choosing how they want to be taxed. For example, these companies can use the pass-through tax model to avoid double taxation or a standard C Corporation tax model. Having numerous choices helps LLCs select the option that maximizes their savings.
• Member benefits: Idaho LLCs can access unlimited members to help finance and run the business. Each member’s voting rights, share of profits and losses, and distribution entitlements depend on their role in the company.