Idaho LLC: Everything You Need to Know
An Idaho LLC, also known as a "hybrid" business structure allows flexibility in setting up an organization.3 min read
What Is an Idaho LLC?
An Idaho LLC, also known as a "hybrid" business structure allows flexibility in setting up an organization. It is a viable way to bring together a diverse group of individuals, businesses, and corporations in a limited liability environment.
Several benefits of forming an LLC include:
- The organization may be made up of corporations, other LLCs, individuals, and foreign entities.
- The number of members allowed to participate in an LLC is unlimited.
- Members of an LLC are subject to limited liability.
There are six steps in forming an Idaho LLC.
- Select the name to be used for your LLC
- Articles of Organization must be filed
- A Registered Agent must be appointed
- Create an Operating Agreement
- Be in compliance with any regulatory requirements and tax requirements
- Annual Reports must be filed
Name Selection — A key component of an LLC is choosing a name that reflects the type of business you're conducting. The name must include L.L.C., LLC, or Limited Liability Company. If the name of the LLC includes words such as doctor, lawyer, bank, or university, additional paperwork is required and will most likely require a licensed person or persons in those fields to be a part of the LLC. You cannot use words in the LLC name that could confuse your business name with any state or federal agency such as the FBI, ICE, or Secret Service. Search the State of Idaho database to be sure the name you've chosen has not already been assigned to another company. Also, consider getting a domain name for your company as well as a professional email address.
Articles of Organization — Information necessary in the form for filing include company name, street address, the mailing address, name of registered agent, names of members/managers, phone number, the signature of one authorized person, and an email address, if applicable. Once the forms are completed, two copies are submitted via mail or online to the Secretary of State. Expect to be notified of approval within 7-10 days.
Fill out the forms using the exact way you want the name to appear. If your business is considered a licensed professional service such as dentistry, medical, law, architecture, public accountant, veterinarian, or social worker, for example, you are required to file a PLLC (Professional LLC) form and you'll use Form 252 to file the articles or organization versus the standard form for businesses not in a licensed professional field.
Fill in the street address, which can be anywhere. Fill in the mailing address, which must be the actual company location. Mail the two copies and pay the filing fee via check, credit card, or money order.
Registered Agent — Select a business or person responsible for receiving and sending any legal papers associated with your LLC. Only a resident of Idaho or corporation authorized to do business in Idaho is allowed.
Operating Agreement — While not required in Idaho, it is a good idea to have the agreement as it contains the terms the members are agreeing to, which are the rules and roles for governing the LLC.
Regulatory Requirements — Request a Federal Tax Identification number or an Employer Identification Number (EIN). Businesses with employees must also register for Employee Withholding Tax, Unemployment Insurance Tax, and Idaho Sales Tax, if applicable.
Annual Report — An annual report must be filed annually online at the Secretary of State website.
Q. Once I've chosen a name, do I have to file it immediately?
A. No. It can be reserved with the Secretary of State for up to four months.
Q. Do I file the Articles of Organization online or in person?
A. Forms can be mailed or filed online.
Q. How much does the filing fee cost?
A. A typewritten form is $100 and handwritten is $120.
Q. Where do I mail my Articles of Organization form?
A. Mail two copies and the filing fee to:
Secretary of State
450 N. 4th Street
P. O. Box 83720
Boise, ID 83720-0080
Q. My LLC is in another state. Can I expand it to Idaho?
A. Yes. If you have an existing LLC and are expanding your business to Idaho, you will be creating a Foreign LLC.
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