How to Start an LLC in Idaho

You can start an LLC in Idaho by yourself. However, it’s often worthwhile to use a professional LLC formation service. These companies make the process much simpler and more efficient, while also ensuring that every step is done accurately.

For most businesses, we recommend either ZenBusiness or Northwest Registered Agent. These are two top-rated service providers that offer excellent solutions to the needs of entrepreneurs. Both are also quite affordable – particularly ZenBusiness, which has plans from just $49 + state fees.

If you choose to go this route, you will pay a bit more – but you’ll also enjoy services that will benefit you and your business. For example, both of our recommended companies also provide Registered Agent services, and you’ll be required to appoint a Registered Agent anyways. They can also help with compliance, business licensing, mail forwarding, virtual office services, and much more.

Recommended services

Visit ZenBusiness

The focus of ZenBusiness is on forming new companies. They help simplify the process of starting a business, using powerful online tools. ZenBusiness plans are ongoing and help customers grow their businesses. They provide many services and resources, and can also help connect entrepreneurs to other relevant services.

See the full ZenBusiness review here

Visit Northwest

Northwest Registered Agent will scan all documents you receive for your business so that you can easily see them in your online account. There, you’ll have unlimited cloud storage as well as strong business data protection, and help from their friendly customer service staff when you need it. A yearly subscription for their registered agent services costs $125.

See the full Northwest review here

Visit Bizee

Bizee specializes in new company formation. With Bizee, you can form a new LLC, corporation, or other business entity in your state. So far, they have helped form more than 500,000 new businesses. Bizee works directly with each US state to help start new businesses. Essentially, they are a middleman between you and your state’s business department.

See the full Bizee review here

The first dedicated step that you will need to take is to select a name for your company. The name must be unique from other businesses in the state of Idaho. To confirm availability, you’ll want to use the Idaho Secretary of State’s business search feature. This allows you to search a statewide database of all the existing businesses in the state of Idaho.

In addition to finding a unique name that’s not already taken, the name you select must also meet certain requirements. The main requirement is to include “LLC”, “L.L.C.” or “Limited Liability Company” in the name of your business.

There are also some words that you cannot include in your business’ name. This includes any terms that may confuse your private company with a public agency. For instance, you can’t use terms like “FBI” or “State Department”.

Likewise, certain words are restricted and require additional paperwork. This includes medical and professional terms like “Doctor” and “Lawyer”.

Every LLC formed in the state must also appoint a Registered Agent in Idaho. A Registered Agent is essentially an individual (or business) that represents your LLC. Their main responsibility is to receive legal documents and notice of lawsuits on behalf of your LLC.

The Registered Agent you choose must be either:

If you live in Idaho, you can be your own registered agent. Or you can appoint one of your employees. The downside of this option is that the mailing address of the Registered Agent will become a public record. If you’d like to protect your privacy, keep this in mind.

The alternative is to hire a Registered Agent service in Idaho. Companies like ZenBusiness and Northwest Registered Agent are both excellent options, with services from $125 and $49 per year, respectively.

Hiring a Registered Agent company is worthwhile for many businesses. It protects your privacy because you use the company’s address instead of your home address. And it ensures that everything is handled correctly.

Do keep in mind that you must have a Registered Agent for the life of your business.

Note: This is optional, but a strongly recommended step. 

An operating agreement is an optional document that most businesses should fill out. It’s an internal document, meaning that it’s kept on file internally and not actually filed with any agency. As such, it’s optional.

Operating agreements describe important details about your company. Most importantly, they lay out ownership details. By establishing ownership agreements, these operating agreements can prevent disputes between owners in the future. As such, they are extremely important for multi-member LLCs. Even single-member LLCs can benefit from an operating agreement, however.

There are a few different ways to draft an operating agreement. You can use a service like ZenBusiness, which provides detailed templates for your use. You can hire a local attorney to help you draft a legally binding document. Or you can search the web for a template to use.

The Articles of Organization are the primary documents that need to be filed in order to actually form an LLC. This can be done in two ways:

The Articles of Organization collect key information about your new company. Once submitted and approved, your LLC will be formed.

The fee for Idaho LLCs is $100 for online filings. There is a $20 extra fee for mail applications, bringing the total to $120. Expedited processing costs $40 extra, while same-day processing costs $100 extra.

Next, you will need to wait for Idaho to process your application. This typically takes 7 to 10 business days. Expedited filing is also available for additional fees, which can reduce processing time to just a few business days.

An EIN is a tax identification number issued by the Internal Revenue Service (IRS). The Employer Identification Number is somewhat like a social security number, but for a business instead of an individual. EINs are required to hire employees, and will likely also be required to open a business bank account.

The good news is that it is easy (and free) to apply for an EIN online, on the IRS website.

The Articles of Organization establish your LLC, but that doesn’t mean you’re fully licensed to do business. Your company will likely be subject to additional requirements.

The state of Idaho has no state-wide business license. However, you may need to apply for a state sales tax permit, unemployment insurance account, and withholding account. Certain types of businesses will need additional permits – for instance, liquor licenses if you plan to sell or serve alcohol. Professional services will need additional licenses to operate.

Also, your business may be subject to local requirements for business permits and licenses. You may need to obtain a business license in the county or city where you plan to operate. Check with your local government for details.

The 7 steps above are the basics needed to start an Idaho LLC – but there are other steps you should tackle now, as well.

Even after you start your business, there will be several ongoing responsibilities to stay on top of. In order to keep your company in good standing with federal, state, and local governments, there are various tasks you’ll need to complete. Some of these include:

This can all seem overwhelming, but ongoing compliance requirements are just as important as the initial formation process. We recommend taking the time now to understand all your requirements, and setting reminders in your calendar to stay on top of things.

For business owners, it is very important to separate personal and business finances. This is key for accounting and tax reporting purposes, but also for liability purposes. If your business is sued and all your personal assets are entangled in your business, your liability protection doesn’t offer much benefit.

To open a checking account, simply bring your business license, EIN, and other documents to a local financial institution. You may wish to call ahead to see what specific requirements they have. You may also wish to apply for a business credit card and other financial products/services.