Are you looking forward to owning an LLC in Idaho, and are you looking for the best guide to start? Stop scrolling and read this!
Here is the best guide on how to start an LLC in Idaho.
It contains all you need to know about starting your LLC without hassles.
How To Start An LLC in Idaho
This guide has made starting an LLC in Idaho easy.
The first thing you’ll need to do is file the Certificate of Organization with the Idaho Secretary of State.
The Certificate of Organization is a legal document that officially establishes your Idaho Limited Liability Company.
You can apply online, by mail, or in-person for $100-$120.
Steps To Start an LLC in Idaho
Follow these steps to start an LLC in Idaho
- Name Your Idaho LLC
- Choose a Registered Agent
- File the Certificate of Organization
- Create an Operating Agreement
- Get an Employer Identification Number
Name Your Idaho LLC
The first thing you should do is to give a describable business name to your Idaho LLC.
As much as you would like to use a name you so desire, you must be sure that another business hasn’t used the name.
So, if you find the name available, you have to reserve the name.
Here are a few guides on choosing a name for your LLC in Idaho.
- Your business name must include limited liability company” or its abbreviations (LLC or L.L.C.).
- Ensure that your name is distinguishable from any Idaho limited liability company, corporation, limited partnership, or registered limited liability partnership business name.
- Ensure the name you desire isn’t already taken by doing a Business Entity Search on the Idaho Secretary of State’s website.
- Your business name cannot contain words used to name a government agency (i.e., State Department, CIA, FBI, Treasury, etc.)
- Also, it can’t contain certain restricted words like bank, lawyer, attorney, credit union, etc.
- Ensure to Reserve the name once you find the availability: You must complete the Name Reservation Request for Domestic Entities form at least two weeks before registration or reserve your business name when completing the online LLC registration.
- Consider if the URL is available: Check online to see if your business name is known as a web domain. If it is, you may want to buy the URL to prevent others from acquiring it.
Choose a Registered Agent in Idaho
A registered agent is an individual or business entity responsible for obtaining basic tax forms, legal documents, a notice of lawsuits, and official government correspondence on behalf of your business.
You need to nominate a registered agent for your LLC in Idaho.
Your registered agent must be a resident of Idaho or a corporation, such as a registered agent service, authorized to transact business in Idaho.
However, you may elect an individual within the company, including yourself, to stand as a registered agent.
File Your Certificate of Organization
A Certificate of Organization is required by the Idaho Secretary of State.
You can apply for it online, by mail, or in person.
You can file by mail or in-person for $120
Office of the Secretary of State
450 N 4th Street
P.O. Box 83720
Boise, ID 83720-0080
Create an Operating Agreement
An operating agreement is a legal document establishing the ownership and operating procedures of an LLC.
Even though an operating agreement is not required for an Idaho LLC, it’s recommended to have one.
In addition, a detailed operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.
Get Your EIN
An EIN stands for Employer Identification Number.
It is a nine-digit number assigned by the Internal Revenue Service (IRS) to help specify businesses for tax purposes.
However, it is practically a Social Security number for a business which can be referred to as Federal Tax Identification Number (FTIN).
An EIN is required if you must:
- Open a business bank account
- File and manage Federal and State Taxes
- Hire employees
You can get your EIN by applying online or by sending mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Fax: (855) 641-6935
What To Do After Forming an LLC in Idaho
After going through how to start an LLC in Idaho, it is essential to protect your business.
You can protect your business by taking some legal steps and separating your personal and business assets to avoid the risk that your LLC is sued.
You can also follow these steps below to protect your LLC in Idaho:
Opening a Business Account
You may have to separate your personal assets from your company’s assets, which is necessary for personal asset protection.
This also makes accounting and tax filing easier.
Get a business credit card
Getting a business credit card helps you separate all business expenses for end-of-year tax purposes.
It also helps you build your business credit score, which is essential for getting a line of credit or business loan.
In addition, it allows you to keep track of department expenses by issuing multiple cards to your employees.
Hire a Business Accountant
To prevent your business from overpaying on taxes while helping you avoid penalties, fines, and other costly tax errors, you may have to hire a business accountant.
Doing this makes bookkeeping and payroll easier, giving you more time to focus on your growing business
Furthermore, it helps you manage your business funding more effectively, discovering areas of unforeseen loss or extra profit
Get Your Business Insurance For Your LLC in Idaho
Getting business insurance helps you manage risks and focus on growing your LLC.
The common types of business insurance are:
General Liability Insurance: This broad insurance policy protects your business from lawsuits.
Professional Liability Insurance: This business insurance is for professional service providers (consultants, accountants, etc.) and covers malpractice claims and other business errors.
Workers’ Compensation Insurance: This type provides coverage for employees’ job-related illnesses, injuries, or deaths. In Idaho, businesses with one or more employees, excluding officers and LLC members, must have workers’ compensation insurance.
Create Your Business Website
To legitimize your business, you need to create a business website.
Every business needs a website to avoid missing out on many potential customers and revenue.
Send Out a Press Release
To provide publicity, you need to do press releases to promote your business.
This is because they are also one of the most cost-effective strategies to establish your brand presence on the web.
Also, they provide publicity, improve your website’s search engine optimization (SEO), drive more customers to your website, and have long-lasting benefits.
Keep Your Business Licenses and Permits
You must comply with federal, state, and local government regulations to operate your business in Idaho.
You must obtain and keep your business licenses and permits from your state.
For instance, for a restaurant’s LLC, you must obtain permits like; need health permits, building permits, signage permits, etc.
However, the details of business licenses and permits vary from state to state.
The fees also vary depending on what sort of license you are seeking to obtain.
Tax Filing Requirements
Depending on the nature of your business, you may have to register for one or more forms of state tax.
You must register for sales tax if you sell a physical product; you’ll typically need to register for a seller’s permit online through the State of Idaho website.
Some of the tax filing requirements are:
Idaho Sales Tax
This is required if you are selling a physical product.
You must register for a seller’s permit through the Idaho Department of Revenue Services.
Meanwhile, the certificate allows a business to collect sales tax on taxable sales.
Idaho Employee Tax
If you have employees in your LLC in Idaho, you will have to register for the Unemployment Insurance Tax through the Idaho Department of Labor.
Also, employers will need to sign up for the Employee Withholding Tax through the Idaho State Tax Commission on your employees’ behalf.
File Your Annual Report
You can file an Annual Report Online with the online Idaho Secretary of State for a non-refundable fee-free.
The due date by the end of the month in which the LLC was formed
Note: Any annual report received after March 31 will give your LLC a “Not in Good Standing” status.
Also, Idaho may dissolve your LLC after one year for failure to file an annual report.
If you plan to hire employees for your LLC in Idaho, you need to abide by the law and follow these steps:
- Verify that new employees have US work permits.
- Report employees as “new hires” to the State
- Provide workers’ compensation insurance for employees
- Withhold employee taxes
- Print workplace compliance posters and place them in visible areas of your workspace
How to Start A Foreign LLC in Idaho
If you have an existing LLC and you want to extend the business to Idaho, you need to register as a foreign LLC.
This is because forming a foreign LLC allows your company to operate as one entity in multiple states. If you have an existing LLC and want to do business in Idaho, you must register as a foreign LLC. This can be done online.
You can do this by
- Typing a form for a nonrefundable fee of $100
- Filing by Mail or In-Person for a non-refundable fee of #120 (if written out by hand)
- Mail to:
Office of the Secretary of State
450 N 4th street
P.O. Box 83720
Boise, ID 83720
How to Obtain a Certificate of Good Standing in Idaho
In Idaho, the certificate of good standing is also called the certificate of legal existence.
With a certificate of good standing, your business is verified that it was legally formed and adequately maintained in Idaho.
Meanwhile, you can order an Idaho LLC Certificate of Good Standing online for $11.50.
You might need to get your certificate of legal standing if:
You will seek funding from banks or other lenders
You might form your business as a foreign LLC in another state
You will obtain or renew specific business licenses or permits
You can order a Certificate of Legal Existence online or by mail.
Online: Request a Certificate Online Through the Idaho Secretary of State for $11.50
Mail or person: Request the official Certificate by Mail or In-Person at a nonrefundable fee of $12.00.
To start an LLC in Idaho, you have to choose a name, choose a registered agent, create an operating agreement, file your article of organization and get your Employer Identification Number.
After that, carry out the other requirements by creating a business account, hiring employees, hiring a business accountant, and filing your annual reports.
To start a foreign LLC in Idaho, you must obtain your certificate of good standing.
We hope this article on how to start an LLC in Idaho is helpful.
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