How to Start an LLC in Idaho
To start an LLC in Idaho you must file a Certificate of Organization with the Idaho Secretary of State, pay a $100 filing fee, and get an EIN from the IRS. The complete steps to forming an Idaho LLC are as follows:
- File an Idaho LLC Certificate of Organization
- Pay the Idaho Secretary of State $100
- Wait to receive the approved copy of your Certificate of Organization
- Get a Federal EIN tax ID for the LLC
- Create an Idaho LLC Operating Agreement
- Take these documents to the bank and get an Idaho LLC bank account
Free PDF Download
Idaho LLC Certificate of Organization free download. The state has moved to an online system but will still accept the old paper form (although they charge you an extra $20 fee).
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8 Day Idaho LLC For $326 Total
How to File an Idaho LLC Certificate of OrganizationTo form an Idaho LLC, you file the LLC Certificate of Organization in the following steps:
What is the Cost of an Idaho LLC?
The Idaho Secretary of State charges a $100 filing fee for the Certificate of Organization. There’s also a $1 credit/debit card processing fee. As of November 2018, if you submit Articles with a paper form that was not completed through Idaho’s SOSBiz, you’ll also incur an extra $20 fee.
Hire Northwest and your total, out-the-door cost, including state filing fees, is $326.
How much does an LLC in Idaho cost each year?
Zip—at least in annual report fees. The Idaho Secretary of State doesn’t charge a fee for their mandatory Idaho Annual Report. Of course, you’ll still have taxes, as well as any permits or licenses required for your business.
What are the Idaho LLC taxes?
The Idaho personal net income tax rates are:
1.6%: $0 to $1,453
3.6%: $1,454 to $2,907
4.1%: $2,908 to $4,361
5.1%: $4,362 to $5,815
6.1%: $5,816 to $7,269
7.1%: $7,270 to $10,904
7.4%: $10,905 +
The Idaho state sales tax rate is 6%, and cities can opt to add on their own taxes up to an additional 3%. For instance, the total sales tax is as low as 6% in Pocatello and as high as 9% in Sun Valley.
Is an Idaho LLC Registered Agent Required?
Yes, Idaho LLCs are required to have and maintain a registered agent. You could do it yourself, but there are two huge benefits to hiring a registered agent service like Northwest: availability and privacy. Odds are, you’re not going to be in the office all the time. You’re going to take time off, go to meetings, travel—and potentially miss a process server. With Northwest, we’ll be there to accept any service of process.
Also, if you list your own address on public documents like your Certificate of Organization, that information becomes a part of the permanent public record. When people come to Idaho, the lower cost of living isn’t the only draw. People are drawn to the Gem State because they want to get away from it all—not worry about unwanted visitors or a mailbox full of junk mail. When you hire Northwest, you can list our address and better maintain your privacy.
Idaho LLC Versus Idaho Corporation:
Filing fees are the same for forming and maintaining both LLCs and corporations ($100 for formation and $0 for annual reports). Both entities have multiple choices for their tax election (for example, both LLCs and corporations can choose to be taxed as S corporations), so there’s not much of an advantage there either. When it comes to costs, Idaho LLCs and corporations are pretty neck-and-neck.
Where LLCs and corporations really differ is in how they operate. LLCs tend to be simpler to manage. Many LLCs are managed by the members themselves, which can make quick decisions and changes a little easier. While LLCs don’t have to worry about directors, officers, board meetings, and stock options, some businesses find these corporate attributes useful. Interested in forming a corporation in Idaho? Here’s information on Idaho incorporation.
Do I Need a Tax ID Number (EIN) for an Idaho LLC?
Most likely—if you plan to hire employees or if you have to submit special federal filings (like Alcohol/Tobacco/Firearms returns), you’re required to have an EIN. Even if an EIN isn’t specifically required, one can really come in handy. Your bank will likely request your EIN when you go to open a business bank account. Vendors may ask for your EIN when you try to establish credit. You could use your personal social security number instead, but with the rise of identity theft and data mismanagement, using your EIN can be more secure. EINs are free and easy to obtain—you can submit an application directly to the IRS. Want one less task on your plate? Hire Northwest to apply for you.
Does an Idaho LLC Need a Business License?
Idaho doesn’t have a state-level business license, so it depends on your business activities and where you’re doing business. For example, all businesses in Caldwell are required to have a business permit, while Boise only requires licenses for specific activities, like child care or food handling.
What is an Idaho LLC Annual Report?
The Idaho LLC Annual Report is a form submitted to the Idaho Secretary of State each year, confirming or updating contact and ownership information. This form can be filed online, and there’s no filing fee. Because there’s no fee, some LLC owners mistakenly think that filing an annual report isn’t important. Don’t be tempted to blow it off—if you fail to file, the state can dissolve your business. When you hire Northwest, we’ll send you annual report reminder notifications so you don’t end up in hot water.
Idaho LLC Certificate of Organization Requirements:
Your name must include “Limited Liability Company,” “Limited Company,” or an abbreviation like “LLC” or “LC.” Tip: While name reservations aren’t required, if you have one, you’ll be able to select your reserved name from the drop down on the online form.
Your principal office must be a street address (no PO Boxes). This address will become part of the permanent public record. Tip: When you hire Northwest, you can list our address.
You can list a noncommercial or individual Idaho agent such as yourself, or you can hire a commercial agent like Northwest. Tip: Wouldn’t it be wild if we didn’t recommend Northwest at this point?
For noncommercial agents or individuals, you’ll need to enter an Idaho street address which will become a permanent part of the public record. For commercial agents, the address will appear automatically when you select the agent’s name. Tip: Looking for our name? Select “Northwest Registered Agent LLC.”
You are asked to provide the name and address of at least one governor for your LLC. “Governor” is a fancy way to say a person with decision-making authority—for an LLC, this would be a manager (if the LLC has managers) or a member.
This is the address where the Idaho Secretary of State will send your annual report notices. Don’t want to enter address after address in your Certificate (and worry about remembering to update them all whenever one changes)? Tip: When you hire Northwest, you can list our address here.
Idaho LLC Organizer
The organizer is the person who is filing the Certificate of Organization for your LLC. It’s not like a governor—an organizer doesn’t have to be anyone actually in the LLC. Tip: Hire Northwest, and we’ll be your organizer.