How do I get an LLC in Idaho

The “Certificate of Organization,” which must be completed and filed with the Idaho Secretary of State, is the initial step in forming an LLC in Idaho.

After you have filed your Certificate of Organization, you'll need to contact the IRS for an employment identification number (EIN) and draft an operating agreement.

You can then open a business bank account, hire staff, file an annual report within a year, and grow your business.

What are the benefits of forming an LLC in Idaho?

The benefits of forming an LLC in Idaho are numerous.

Exemption from taxes

When you incorporate an LLC in Idaho, it qualifies as a pass-through entity, which, despite sounding like some kind of spiritual being, is actually about taxation. A pass-through entity is a legal entity that permits your LLC's earnings and income to "pass through" to its members or investors, based on the conditions of your operating agreement.

Protection

In Idaho, forming an LLC provides you with the security of a corporation without the taxes and formalities. If an LLC is properly founded and maintained in good standing by filing yearly reports, it separates and protects the members' personal assets from the company's debts and liabilities.

How to Form a Limited Liability Company in Idaho?

You must file a completed Certificate of Organization with the Idaho Secretary of State to form an LLC in Idaho. The Idaho Secretary of Business Entities website has a PDF of the Certificate of Organization.

The Certificate of Organization is completed in six steps:

Select a Name

You must choose a name for your Idaho limited liability company. You may already have the ideal name in mind, but it must adhere to the Idaho LLC creation guidelines:

It must include the words "limited liability company" or the abbreviation "LLC," punctuated or not.

It must be distinct from any other business entity registered with the Secretary of State of Idaho.

Before you get too attached to a name, double-check to see if it's still available. The Idaho Secretary of State's Entity Search website allows you to search for all Idaho business entities.

Include the address of the main office

The company's major physical location is the principal office. This address does not have to be physically in Idaho according to Idaho law.

Selecting a Registered Agent

A registered agent is a third-party entity designated by the LLC's founding member(s) to receive any legal communication pertaining to the company. Service of process of legal action and yearly report reminders are examples of legal correspondence. A physical street address in Idaho is required for a registered agent. Postal boxes are not included.

It is feasible to act as the registered agent for your LLC. You must, however, have a physical Idaho address to do so. If your LLC does not have a registered agent in Idaho with a physical address, the LLC will lose its legal standing and, in some situations, face additional fines.

There is a disadvantage to acting as the registered agent: your personal information is made public. Choose a Registered Agent that may give one full year of registered agent service if you prefer to remain anonymous.

Specify the manager of the LLC

The position of the governor of an LLC is decided by the management structure of the LLC, according to the Idaho Uniform Limited Liability Company Act. In a manager-managed LLC, the governor is a manager. Any management or member of an LLC is not needed to contribute to the firm or to purchase a transferable interest in it.

Select a Mailing Address for Future Communications

You can use the principal address or the address of your registered agent as a mailing address for future contact on the Certificate of Organization. The Idaho Secretary of State will mail notices for annual reports to this address.

Include the signature of the organizer

The organizer of the LLC signs the Certificate of Organization. The person or persons who deliver the Certificate of Organization to the Idaho Secretary of State are the LLC's organizers. The organizer is not required to be a member of the LLC, although they may choose to be.

How to Submit an Organizational Certificate

Idaho's Secretary of State has upgraded to the Idaho SOSBiz online system. This technology allows you to submit your Certificate of Organization online. You must still utilize this system to thoroughly fill out your information if you want to mail your filing. The completed form can then be printed and mailed. The Idaho Secretary of State can be reached at (208) 334-2301 for more information on filing times and fees.

The cost of filing is $100. There is also a $1 cost for online credit card processing, and the state adds another $40 for one-day expedited processing.

How much does it cost to form a limited liability company in Idaho?

The state fees for incorporating an Idaho LLC can range from $100 to $140, depending on how you file and if you reserve your business name. Expediting the filing will increase the cost even further. Fees are subject to change, so check the Idaho Secretary of State's website for the most up-to-date fee schedule.