How to Start an LLC in Idaho (Step-by-Step Guide)

Did you know that more than 75% of new businesses fail within the first five years? Many entrepreneurs believe that choosing the proper business structure can protect their assets and increase their chances of success.

Forming an LLC in Idaho can provide the legal protection and flexibility needed to thrive in today’s competitive market.

To establish your LLC successfully, you must choose a unique business name, designate a registered agent, file an LLC Certificate of Organization, and file an annual report.

Filing your Certificate of Organization in Idaho costs about $100, and it takes seven to ten business days to be approved.

This guide compiles all the information you need to start an LLC in Idaho today.

What Are the Steps to Start an LLC in Idaho?

To start an LLC in Idaho, you need to:

• Step 1. Choose a unique name for your Idaho LLC
• Step 2. Select an Idaho registered agent
• Step 3. File Certificate of Organization with the state
• Step 4. Create an Operating Agreement
• Step 5. Get an EIN from the IRS
• Step 6. File a BOI report
• Step 7. File an annual report

Let us dive more in-depth into these steps so I can show you how to get them:

Step 1: Name Your Idaho LLC

Choosing a name for your Idaho LLC is an essential first step. Your name can reflect your business’s identity and be creative or straightforward.

Here are the critical naming requirements you must follow:

• The name must include “limited liability company” or “limited company” or use the abbreviations “LLC,” “L.L.C.,” “L.C.,” or “LC.”
• “Limited” can be shortened to “Ltd.,” and “company” can be “Co.”
• The name must be distinguishable from all other business entities in Idaho.
• Avoid using terms that may confuse people with government agencies, like “FBI” or “CIA.”
• Don’t imply you can provide professional services without proper state permission.

Once you have a few ideas, you should check if they are available. Search the Idaho business entity database to see if your preferred name is free. If it’s taken, consider swapping out a word for a synonym or changing the order of words.

You can reserve your chosen name if you’re not ready to file your LLC documents immediately. This reservation lasts up to four months, preventing others from using it while you finalize your business plans.

Idaho has a specific Application for Reservation of Legal Entity Name that can be filed online or by mail. It costs $20, with an additional $20 for mail filing.

A DBA allows businesses to conduct transactions, market themselves, and brand under a different name without creating a new legal entity.

If your business intends to operate under a name different from its legal, registered name, you must file a Certificate of Assumed Name. This costs $25 if filed online and an extra $20 by mail.

You may also want to conduct a trademark search nationally and in Idaho to ensure that you choose a non-trademarked name.

Step 2: Select an Idaho Registered Agent

A registered agent is an integral part of forming your LLC in Idaho. This person or business will accept legal documents and notices for your company. They act as the primary contact for any communication from the state.

Who Can Be a Registered Agent?

You have a few options for who can be your Registered Agent in Idaho:

• You: You can act as your registered agent, but remember you must be available during business hours to receive documents.
• A Family Member: A trusted family member can be your registered agent.
• An LLC Formation Service: Professional services offer expertise in handling official correspondence and ensuring compliance with state regulations.
• A Lawyer: A legal service firm can also serve as your registered agent, providing additional legal support if needed.

Requirements for Idaho Registered Agents

Idaho law requires registered agents to have a physical street address, not just a P.O. Box. The address must be where the agent can consistently receive legal documents and official mail during regular business hours.

Additionally, the registered agent must be at least 18 years old and available to accept service of process. This means they must be present to handle any legal notices or court documents delivered to the LLC.

What registered agents do I recommend for Idaho?

I highly recommend Northwest registered agent services for obvious reasons.

They offer a range of benefits that set them apart, including a free year of registered agent service, which helps you save (about $300) on initial costs.

You’ll receive a complimentary operating agreement essential for outlining your LLC’s internal structure.

My favorite part?

Northwest also allows you to use their office address for your LLC filing, keeping your address off public records and enhancing your privacy.

Their free email forwarding service ensures you stay on top of important correspondence, and their exceptional customer support is always available to assist you whenever needed.

Step 3: File Idaho LLC Certificate of Organization

Filing the Certificate of Organization is critical in starting your LLC in Idaho. This document officially registers your LLC with the state and shows your intention to form it.

To file your Certificate of Organization in Idaho, follow these steps:

Step #1. Complete the Form: Obtain and complete the Certificate of Organization form from the Idaho Secretary of State website.

Include the following:

• Name of your LLC
• The mailing address of the principal office
• Name and address of the registered agent
• Name and address of the LLC’s governor (can be a member or manager)
• Address for future correspondence
• Signature and contact information of the organizer

Step #2: File Online or by Mail: You can file your Certificate of Organization online through the Idaho Secretary of State website or by mailing the completed form to:

Office of the Secretary of State
450 N 4th Street
PO Box 83720
Boise, ID 83720-0080

Step #3: Pay the Filing Fee: The filing fee is $100 if you file online. Filing by mail attracts an extra $20. It takes seven to ten business days to be processed, but you can get same-day processing for an additional $100.

After completing these steps, Idaho will issue you a certificate verifying the formation of your LLC and its official registration in the state. This certificate will enable you to open a business bank account and secure an employer identification number.

Step 4: Prepare Operating Agreement for Your Idaho LLC

An operating agreement is an essential document for your Idaho LLC, even though it’s not required by state law. This internal document outlines how your business will run and details the relationships among the members.

Having an agreement helps keep everyone on the same page. It sets clear expectations and can prevent misunderstandings in the future. If disagreements arise, the operating agreement serves as a guide to resolve issues.

Here are some standard details you should include in your operating agreement:

• New member initiation details: Outline how new members can join the LLC.
• Dissolution: Specify under what conditions the LLC may be dissolved.
• Voting protocol: Describe how decisions will be made within the LLC.
• Day-to-day company operations: Explain how the business will be managed daily.
• Company mission statement: Define the purpose and goals of your LLC.
• Management structure: Clarify who is in charge and how responsibilities are divided.
• Allocation of profits and losses: Detail how profits and losses will be shared among members.
• Amendment Process: Describe how changes can be made to the agreement in the future.

Consider adding a clause for a third-party mediator. This can help resolve conflicts without prematurely dissolving your LLC and foster trust among members.

Taking the time to prepare a thorough operating agreement can make a big difference for your Idaho LLC.

Step 5: Obtain EIN for Your LLC

An Employer Identification Number (EIN) is a unique nine-digit number issued by the IRS. It identifies your business for tax purposes.

For an LLC in Idaho, obtaining an EIN is necessary to open a business bank account, apply for a business line of credit, hire employees, and file taxes.

How to Apply for an EIN:

• Online: Visit the IRS website. This is the fastest way to get your EIN.
• By Mail: Fill out Form SS-4 and send it to the IRS. This option takes longer.
• By Fax: You can also fax the completed Form SS-4.
• Phone: U.S. residents can call the IRS at 1-800-829-4933 to apply.

How Much Does It Cost To Get EIN?

Obtaining an EIN is free. However, some services charge $100 or more to help you with the entire process.

How Does it Take to Obtain my EIN?

• Online: Get it immediately.
• By Mail: Expect 4 to 6 weeks.
• By Fax: Usually within 1-2 weeks.

Step 6: File a BOI Report

After forming your LLC in Idaho, you must file a Beneficial Ownership Information (BOI) Report. This report is necessary under the Corporate Transparency Act (CTA). This is a federal requirement for new LLCs.

You must submit this report to FinCEN within 90 days of forming your LLC. Filing is free and can be done online at the FinCEN website.

Here’s what you need to prepare:

• Company Information: Name, address, and formation date.
• Beneficial Owners: Full names, addresses, dates of birth, and identification numbers.

Gather this information along with your LLC formation documents. This will help streamline the filing process.

Completing the BOI report is essential for maintaining compliance with federal regulations. It ensures transparency about who owns and controls your LLC. Take the time to do this correctly to avoid any potential penalties.

Step 7: File an Annual Report

Every LLC in Idaho is required to file an Annual Report each year. This report is essential for keeping your LLC in good standing with the state.

The purpose of the Idaho Annual Report is to keep your LLC’s contact information updated with the Secretary of State and completely free to form.

Your LLC’s Annual Report is required annually by the last day of the month the state approved the LLC (also known as its “filing date”).

The first Annual Report is due the year following your LLC’s formation.

If your LLC was approved on August 26, 2024, your first annual report will be due by August 31, 2025.

You can determine your LLC’s approval date by checking the date on your approved Certificate of Organization or by conducting an LLC business search to find the “Filing Date.”

If you formed your Idaho LLC through SOSBiz, the Secretary of State will email you a reminder about 1-2 months before your Annual Report is due.

You can file your annual report online on the Idaho Secretary of State website or by mail.

If you fail to file within 60 days, the state may forcibly dissolve your company. To avoid this, you can create an online account, which allows you to file the report and set up reminders to ensure you don’t miss the deadline and risk dissolution.

What are the Different Methods To Start an Idaho LLC?

You have several options for starting an LLC in Idaho. Each method has its process, costs, and time frames. Understanding these options will help you choose the best approach for your needs.

DIY LLC Formation in Idaho

Forming an LLC yourself can be straightforward if you follow the correct steps. You must handle tasks like naming your LLC, filing the Certificate of Organization, and obtaining an EIN.

Pros:

• Cost-effective: You only pay state fees.
• Complete control: You manage the entire process.
• Learning experience: You gain valuable knowledge about your business structure.

Cons:

• Time-consuming: It may take longer without professional help.
• Potential for mistakes: Errors in paperwork can delay approval.
• Complexity: You need to understand state requirements and forms.

Using a Professional/Online LLC Formation Services

Another option is to hire an online service to assist with your LLC formation. These companies streamline the process and handle paperwork for you.

Pros:

• Efficiency: Faster processing times.
• Guidance: Experts help ensure correct forms and compliance.
• Convenience: You can complete everything online.

Cons:

• Cost: Fees for services can add up.
• Varied service quality: Research is needed to find a reputable service.

Hiring an Attorney

Hiring an attorney is an option for those who want expert legal assistance. They can provide personalized guidance and ensure all legal aspects are covered.

Pros:

• Expertise: Lawyers understand complex business laws.
• Tailored advice: You receive personalized legal guidance.
• Protection: Helps avoid legal issues down the road.

Cons:

• Expense: Legal fees can be high.
• Dependence on others: You may rely heavily on the attorney.
• Time considerations: Scheduling and meetings can take longer.

What is The Cheapest Alternative Way to Form an LLC in Idaho?

If you’re looking to start an LLC in Idaho on a budget, the most affordable option is to do it online. By filing the Certificate of Organization directly with the Idaho Secretary of State, you can keep costs between $100 and $150, depending on your needs.

This DIY approach helps you avoid the extra fees of hiring a service or lawyer, saving you money for other business expenses.

However, while DIY is cost-effective, it requires some effort. You’ll need to understand all the forms and regulations, and missing a detail could delay your application or create problems later.

Consider using a registered agent if you prefer not to handle everything yourself.

They can make the process smoother by ensuring you receive important documents and helping you stay compliant with state requirements. Although this adds a bit to the cost, it can provide valuable support and peace of mind.

Who Provides the Best LLC Services in Idaho?

There are a myriad of Idaho LLC services from which to choose. Choosing the wrong one can affect your Idaho LLC formation timeline—I know this from my experience using a few and researching a dozen over the years.

Here are some top-rated options you should consider:

Best Idaho LLC Service	Google Rating	LLC Formation Cost	Registered Agent Fee
Northwest Registered Agent	4.7/5	$39	Free for 1 year
Doola	4.6/5	$0 (plus state fees)	$297/year
Tailor Brands	4.4/5	$0 (plus state fees)	$199/year
ZenBusiness	N/A	$0 (plus state fees)	$199/year

Besides, the fact that other services bill you for their registered agent in the first year, and Northwest offers it for free, is a HUGE plus for me.

Northwest Registered Agent stands out in Idaho LLC formation due to its commitment to transparency, customer service, and privacy. Using their address helps protect your personal information, making them a reliable choice.

How Much Does It Cost To Form an LLC in Idaho?

Starting an LLC in Idaho costs around $100, which covers the Idaho LLC formation fees. However, there are other fees you need to be aware of.

Here’s a breakdown of the entire Idaho LLC costs:

Requirement	Cost
New LLC Filing Fee (Certificate of Organization)	$100 (online), $120 (by mail)
Name Reservation Fee	$20 (online), $40 (by mail)
DBA Registration Fee	$25 (online), $45 (by mail)
LLC formation service	$39 (via Northwest)
Registered Agent Fee	$0 (via Northwest)
Annual Report	$0
Total Estimated Cost	$100 – $245

When forming a new company in Idaho, budgeting about $100-$245 for the first year is ideal. Then, if you want to go further, you can get other bells and whistles like a virtual mailbox, custom website, trademark services, premium EIN services, etc.

That said, the most significant (and essential) expense for every Idaho business owner is filing the Certificate of Organization, which costs $100.

Pros and Cons of Forming an LLC in Idaho

6 Important Things To Do After Forming Your Idaho LLC

After forming your LLC in Idaho, several key steps must be taken to ensure your business runs smoothly and stays compliant. These steps include licensing, financial management, tax requirements, and more. Here’s what you need to do next.

1. Research the Best Licenses and Permits for Your Business

Idaho doesn’t have a state general business license. However, depending on the location of your LLC, you may need a local business license or permit.

You may also need specific licenses or permits depending on your business activities. Idaho has a helpful questionnaire that can guide you to the proper offices for more information.

Check with your local county for any additional requirements. Each county may have its rules, including local licenses or special taxes. Failing to acquire the necessary permits can lead to fines or operational issues.

2. Create Business Accounts for Your LLC

Opening a separate bank account for your LLC is essential for keeping your business finances organized and distinct from your funds. This separation simplifies your accounting and helps safeguard your assets by clearly distinguishing between personal and business transactions.

When choosing a bank, look for one that offers business-friendly services, such as waived fees, free online banking, and other features that can benefit your business. To open the account, be prepared to provide your EIN and a copy of your Articles of Organization.

A dedicated business account streamlines your financial management and simplifies tax preparation.

Having all your business transactions in one place lets you easily track your income and expenses, ensuring everything is well-organized and accessible when tax season rolls around.

3. Understanding Idaho Tax Requirements and Managing Your Taxes

Familiarize yourself with the tax obligations at federal, state, and local levels. Idaho charges a minimum $10 tax on LLCs, but your total tax burden may vary based on factors like the number of members in your LLC.

If your LLC generates income, you must file federal tax forms. Single-member LLCs use Form 1040, while multi-member LLCs file Form 1065.

Remember that you must register for employer taxes and state unemployment insurance if you have employees.

You can receive up to $3,000 in tax credits if you are a small business creating jobs in Idaho. Moreover, you can also receive up to 3.75% in income tax credits if you purchase any equipment from Idaho. 

Understanding these requirements helps avoid penalties and ensures smooth financial operations.

4. File Your Annual Report

Idaho doesn’t require an annual fee for LLCs, but you must file an annual report during your LLC’s anniversary month. This report is necessary to keep your business in good standing.

Use an online account to submit the report quickly and set reminders for timely filing. Remember, if you fail to file within 60 days, the state could dissolve your LLC, which can be a costly setback.

5. Get Business Insurance for Your LLC

Just as you wouldn’t leave your home without coverage, your LLC also needs the right business insurance to guard against potential risks and liabilities. Insurance protects your company’s assets and ensures financial stability in case of unforeseen issues or legal claims.

Your insurance needs will vary based on your business operations.

For example, general liability insurance covers risks such as slip-and-fall accidents or property damage if your LLC operates from a physical storefront.

Conversely, if you run your business as a consultant and work remotely, you might only need professional liability insurance to cover potential service errors or omissions. Assessing your business needs helps you choose the appropriate coverage to protect your LLC.

6. Setup Your Business Online Presence (optional)

Creating an online presence is increasingly vital for success. Start by purchasing a domain name for your business. A professional website serves as a platform to showcase your services or products.

Even if you’re not selling online, a website provides potential clients with essential information about your business.

You can use it to establish credibility and improve your reach. Including a blog or contact form can further enhance your visibility in the market.

Consider using social media to engage your audience. Platforms like Facebook, Instagram, and LinkedIn can enhance your visibility.

Idaho LLC vs. S Corp vs. Partnerships vs. Sole Proprietorship vs. Corporations

When starting a business in Idaho, you have several structures, each with unique features. Here’s a breakdown:

Sole Proprietorship

An Idaho sole proprietorship is the most straightforward way to start a business. Imagine you’re running a lemonade stand on your own. You make all the decisions and keep all the profits.

However, there’s no legal separation between you and your business. If your lemonade stand faces financial trouble or legal issues, your assets, like your car or home, could be at risk. It’s easy to set up and manage, but it does leave you personally responsible for any business debts.

Partnership

An Idaho partnership involves teaming up with one or more people to run a business. Think of it as joining forces with a friend to open a café. You share the profits and responsibilities, and you both make business decisions.

However, like a sole proprietorship, each partner is personally liable for any business debts or legal issues. If the business encounters financial trouble, your assets could be at risk, too.

Partnerships are relatively easy to set up but require clear agreements between partners to avoid conflicts.

LLC (Limited Liability Company)

An LLC offers a blend of flexibility and protection.

Picture it as a protective umbrella over your lemonade stand. This structure separates your assets from your business, so if your LLC faces legal issues or debts, your personal belongings are generally safe.

LLCs are more formal than sole proprietorships or partnerships but offer management and tax treatment flexibility. They are ideal for small—to medium-sized businesses that want liability protection without the complexity of a corporation.

S-Corporation

An S Corporation is a more structured business form.

Think of it as a business where owners are shareholders, much like a small-scale company with multiple investors. It protects liability and allows profits to pass through to your tax return, avoiding double taxation.

This means you report the income and losses on your tax return, which can be beneficial for tax purposes. However, S Corps have stricter operational requirements and formalities compared to LLCs.

Corporation

An Idaho corporation is the most complex structure, suitable for larger businesses aiming for significant growth.

Imagine a big company with many shareholders. A corporation offers robust liability protection and is a separate legal entity from its owners, meaning your assets are protected.

Corporations can raise capital more efficiently by issuing stock and can offer employee benefits. However, they come with extensive regulatory requirements, formalities, and paperwork, making them more suitable for businesses with significant resources and expansion plans.

My Final Thoughts: Forming an LLC in Idaho

Starting an LLC in Idaho is an exciting step toward bringing your business idea to life. Although it might seem like many steps initially, breaking them down makes the process more manageable and ensures you cover all the essential bases.

Starting an LLC in Idaho involves several key steps:

• Choose a name for your LLC that complies with state rules.
• Designate a registered agent to receive legal documents on behalf of your LLC.
• File the Certificate of Organization with the Secretary of State.
• Prepare an Operating Agreement for your LLC
• Obtain an EIN from the IRS
• File a BOI Report within 90 days of LLC formation
• File an annual report to remain compliant

The costs of forming an LLC in Idaho include the $100 filing fee. The annual report is free to file, making it affordable to maintain your LLC.

Follow these steps and understand the costs to set up your business structure. Forming an LLC in Idaho can provide personal liability protection and flexibility in managing your business.

Learn More About Starting an LLC in Idaho

If you need additional help to start an LLC in Idaho, check out these valuable resources:

Frequently Asked Questions

Can I change my registered agent in Idaho?

Yes, you can change your registered agent in Idaho. You must file a form with the Secretary of State’s office to update this information.

How do I change my Idaho LLC’s name?

To change your LLC’s name, submit an amendment to your Certificate of Organization. This can usually be done online or by mailing in the required form.

How do I renew my Idaho LLC?

Idaho LLCs must file an annual report to remain in good standing. You can usually renew it online through the Secretary of State’s website.

How do I dissolve an LLC in Idaho?

To dissolve an LLC, you must file a Certificate of Dissolution with the Idaho Secretary of State. Ensure all taxes and debts are settled before doing this.

How do I add a member to an Idaho LLC?

To add a member, you must follow your LLC’s operating agreement. Typically, this involves updating the agreement and possibly filing changes with the state.

How do I add a DBA to an LLC in Idaho?

To add a DBA (Doing Business As) name to your LLC, you must file a form with the Idaho Secretary of State. There may be a small fee for this registration.

Can a minor own an LLC in Idaho?

Yes, a minor can own an LLC in Idaho. However, since they cannot legally enter contracts, an adult must act on their behalf.

What is the cost of the Idaho Annual Report?

The cost of filing your Annual Report in Idaho is typically $0, meaning it is free to file.

Does an LLC expire in Idaho?

An LLC does not automatically expire in Idaho as long as you file your Annual Reports and comply with state regulations.

Can a non-resident open an LLC in Idaho?

Yes, a non-resident can open an LLC in Idaho. You must choose a registered agent with a physical address in Idaho.

Can I buy a house or car with my LLC in Idaho?

Yes, an LLC can purchase property or vehicles in Idaho. Ensure you use the LLC’s name during the transaction.

Can you have multiple businesses under one LLC in Idaho?

Yes, you can operate multiple businesses under one LLC in Idaho. You may also choose to use DBAs for each business.

Is Idaho an excellent state in which to form an LLC? Is it worth it?

Idaho is considered a good state for LLC formation due to its low filing fees and business-friendly environment. Depending on your needs, it can be worth it.

Can one person form an LLC in Idaho?

Yes, one person can form an LLC in Idaho. A single-member LLC is a standard structure and offers the same liability protections as multi-member LLCs.