Idaho LLC Costs
A limited liability company, or LLC, is a business structure that provides business owners with liability protection, special tax benefits, and an optimal management structure. It is a common misconception that LLC formation is complicated and expensive in Idaho. But in reality, it is straightforward and worth the cost for many businesses.
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Costs to start an LLC in Idaho
LLC Certificate of Organization ($100)
- You must file your Certificate of Organization, or Articles of Organization, with the Idaho Secretary of State.
- The LLC cost for an Idaho Certificate of Organization is $100 if you file online and $120 by mail.
- Idaho does offer expedited services for an additional fee of $40. If you require the same-day service, it is an additional $100.
Idaho annual report fee ($0)
- The Idaho Secretary of State does require that all LLCs file an annual report. However, the state does not assign a fee to the report submission.
- You must complete and submit the annual report form online each year at the end of the LLC anniversary month.
- Because Idaho does not have annual fees, there is no state-mandated late fee.
- But, you could face LLC dissolution if you fail to submit the report on time.
Idaho registered agent fee (varies between $50 to $300)
- You must appoint a registered agent in Idaho to form an LLC in the state.
- When you obtain a registered agent, you are ensuring the Idaho Secretary of State that someone is available during business hours to accept subpoenas, phone calls, and other business-related correspondence.
- Your LLC cost for a registered agent varies depending on your chosen service, your LLC needs, and state filing fees.
- In Idaho, you can act as your own registered agent. But, it is recommended that you appoint an experienced agent or service to avoid missing deadlines and accruing late fees.
Fees to form a foreign LLC in Idaho ($100)
- Idaho requires you to register your LLC as a foreign LLC with the Secretary of State if you have an existing LLC in a different state.
- You must file a Foreign Registration Statement online using the Idaho SOSbiz portal.
- The LLC filing fee to form a foreign LLC in Idaho is $100.
LLC name reservation fee ($20)
- You are not required to reserve an LLC before filing the Certificate of Organization as long as it is available.
- When you reserve an Idaho LLC name, you are ensuring that no one else can grab the name before you finish the formation process.
- You can reserve an Idaho LLC name for up to 4 months.
- You will complete and submit the Application for Reservation of Legal Entity Name online using the Idaho SOSbiz website.
- The cost for reserving an Idaho LLC name is $20.
DBA filing fees in Idaho ($25)
- The acronym DBA means ‘doing business as.’ A DBA, or assumed name, is a registered name an individual or LLC utilizes to operate a business that is not its legal name.
- In Idaho, you must register a DBA name if the business name is not the LLC’s legal name.
- You must complete and submit the Certificate of Assumed Business Name using the Idaho SOSbiz website.
- The cost to file an Idaho DBA is $25.
Cost of certified document copies ($10)
- You will order certified copies of LLC documents by completing the Certificate Request form and submitting it to the Idaho Secretary of State Corporation Division.
- The cost for certified document copies in Idaho is $10 plus $.25 for every additional page.
Certificate of Good Standing ($10)
- Banking and financial institutions will require a Certificate of Good Standing from Idaho when doing business banking in the state.
- You can order line using the Idaho SOSbiz website.
- Or, you can complete the Certificate of Good Standing order form and submit it by mail to the Secretary of State.
- The filing cost for your Certificate of Good Standing in Idaho is $10.
Steps to start an LLC in Idaho
Choose a business name
Before choosing an LLC name in Idaho, you will need to consider a few things.
- The Idaho LLC name must be unique and available for use upon formation.
- Your LLC name must meet Idaho name requirements and restrictions.
- You will want to check for web domain availability.
You will use the Idaho Secretary of State Business name search to check for LLC name availability.
LLC name reservation fee
You do not have to reserve your LLC name in Idaho.
LLC name reservation is valid for up to 4 months before LLC formation.
You must complete and submit the Application for Reservation of Legal Entity Name online using the Idaho SOSbiz website.
The LLC cost for a name reservation in Idaho is $20.
The cost for reserving an Idaho LLC name is $20, and is good for up to 4 months. Idaho does not require you to reserve an LLC name.
Appoint an Idaho registered agent
The Idaho Secretary of State requires that you appoint a registered agent when forming an LLC in the state.
The price for a Idaho registered agent or service varies beetween $50 and $100 a year. The cost depends on the state and your LLC needs.
A registered agent in Idaho is an individual or business entity that receives tax forms, legal documents, subpoenas, civil notices, service of process, and other official government correspondence on behalf of a sole proprietorship, corporation, or LLC.
The registered agent you choose must be an Idaho resident or a registered agent service authorized to conduct business in the state.
- Starter Plan – $39 a year plus State Fees
- Pro Plan – $149 a year plus State Fees
- Premium Plan – $249 a year plus State Fees
ZenBusiness offers a stand-alone registered agent service. The price is $99 per year.
- Total Out The Door Idaho LLC Formation Service Package – $45 a month and includes:
- Idaho State Fee
- Filing Service Fee
- Registered Agent
- Tax ID
- Annual Plan – $225 plus State Fees a year
- Economy – $79 plus $153 Idaho filing fees
- Standard – $329 plus $153 state filing fees
- Express Gold – $349 plus $255 state filing fees
File Idaho Certificate of Organization
You will file an LLC Certificate of Organization, or Certificate of Formation, with the Idaho Secretary of State.
You can submit your Certificate of Organization online using the Idaho SOSbiz business portal.
Or, you can complete the Certificate of Organization Limited Liability Company form and submit it to the Idaho Secretary of State.
The cost to file your Certificate of Organization is $100 online, or $120 if you file by mail.
You do have expedited services available in Idaho for an additional $40. If you need same-day LLC service, it is $100.
Office of the Secretary of State
450 N 4th Street
P.O. Box 83720
Boise, ID 83720-0080
The Certificate of Organization form asks for specific information about your Idaho LLC.
- LLC name and address
- Registered agent information
- At least one member’s name and contact information
- Mailing address for future correspondence.
The fee in Idaho for filing your LLC Certificate of Organization is $100 online, or $120 by mail.
Get an Idaho LLC EIN
An Employer Identification Number, or EIN, can also be referred to as a Federal Employer Identification Number (FEIN) or Federal Tax ID Number (FTIN).
The 9-digit IRS-issued number does not come with any additional cost. It is free and acts as a Social Security Number for LLCs for income tax purposes.
You must obtain an EIN in Idaho if you are converting a sole proprietorship into an LLC.
Applying for an EIN is a simple process online through the IRS website.
Business banking for an Idaho LLC
Your business banking account and personal banking account should always be separate. It ensures that your private assets and credit scores are protected.
In Idaho, banking institutions require your Articles of Organization, an operating agreement, and the assigned EIN before you conduct business banking.
Business banking accounts are generally free, and do not have additional charges or fees.
Business attorney fees in Idaho
Business attorneys come in handy for LLCs because they help make the formation process more manageable, and they will assist you with any future business-related issues that may come up.
Attorneys that specialize in LLC formation often offer first-time clients free consultations.
Professional services such as LegalZoom and Rocket Lawyer offer LLC formation packages that include comprehensive legal services.
On average, a business lawyer in Idaho will cost $300 per hour.
LLC taxes in Idaho
- LLCs in Idaho are pass-through entities, meaning the members file their personal tax returns rather than the LLC’s state tax return.
- You must obtain a seller’s permit through the Idaho State Tax Commission website if you sell physical products or services.
- Idaho does have an annual franchise tax. The Idaho tax rate on taxable business franchise income is 6.5%.
- The Idaho state sales tax rate is 6.00%, and a local and county maximum of 3.00%.
- LLCs that hire employees must register for Unemployment Insurance Tax through the Idaho Department of Labor.
- You will use the Idaho State Tax Commission website to register for Employee Withholding Tax.
- State taxes and federal taxes are complicated, and you risk making simple errors that will lead to fines and penalties. It is recommended you hire a tax professional.
Business licenses and permits in Idaho
The business license or permits you need will always depend on where your principal office is located in Idaho and the type of business.
You will use the Business. Idaho.Gov website to search for and obtain specific business licenses and permits that you will need.
A business license in Idaho is $100 for LLCs . The price for local permits and licenses will depend on where you are located and the type of business it is.
Idaho counties and cities will have different rules and requirements for permits and licenses. You will want to call ahead to inquire about the process, price, and business hours.
Some LLC documents in Idaho will require a notarization from a notary public.
Most government agencies have one in the office if you cannot locate a notary.
According to Idaho law, a notary public can only charge a max of $5 per notorial act.
Employer obligations in Idaho
- When hiring employees in Idaho, you have specific employee obligations.
- You must verify all of your employees are eligible to work in the US using Form I-9 from the USCIS Website.
- According to Idaho state law, you must obtain worker’s compensation insurance.
- You must report all new hires to the Idaho Department of Labor.
- You can find a complete list of employer obligations in Idaho.
Benefits of an Idaho LLC
- Business banking is simplified in Idaho when you form an LLC. Banks and lenders will require you to open a business bank account that is separate from your personal one. The LLC business structure reduces your liability for future business debt.
- You have different compliance requirements as an LLC. Incorporations have stockholders and shareholders to answer to when making business decisions. LLCs do not.
- LLCs are pass-through entities in Idaho. The LLC business earnings are only taxed once through the member’s tax return.
- You reduce the chances of double taxation when forming an LLC. C-corporations, for example, are double-taxed, while LLCs are not.
- LLC formation in Idaho is highly affordable when compared to other states. It only costs $100 to file a Certificate of Organization.
How long does it take to register an LLC in Idaho?
It takes Idaho 7 to 10 business days to process an LLC online and 2 to 3 weeks if you file by mail.
Idaho does offer an expedited process for mail filings for an additional $40. If you require same-day LLC formation, it is an additional $100.
How do I dissolve my Idaho LLC?
How do I reserve a foreign LLC name in Idaho?
If you are forming a foreign LLC, you must complete the Application for Registration of Foreign Name and submit it to the Secretary of State.
The fee to reserve a foreign LLC name is $60.
Do I need a business operating agreement for my LLC in Idaho?
The state of Idaho does not require you to have an operating agreement or to file one with the state.
But, LLCs tend to opt to have one on file to avoid future misunderstandings within the LLC. An operating agreement can be written or oral as long as it is in the company files.
Are there publication requirements for an LLC in Idaho?
Unlike Arizona, Idaho does not have publication requirements for LLCs. Your annual report with the state meets that standard.
However, publishing a notice of a new LLC is always a marketing plan. It helps new companies, small businesses, and entrepreneurs introduce themselves to the public.
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