Idaho LLC Registration: Everything You Need to Know
Idaho LLC registration is the process of forming an LLC in the state. It involves several key steps, including filing certain documents and paying required fees.3 min read
2. Management and Registered Agents
3. Important Documents
How to Form an LLC in Idaho
To start an LLC, you can follow these simple steps:
- Name your business.
- Select a registered agent, also known as a resident or statutory agent.
- File a Certificate of Organization.
- Draft an Operating Agreement.
- Obtain an EIN, or Employer Identification Number, from the IRS.
Choose a name for your LLC that's easy for potential customers to remember and find. Make sure it fits your business as well. Follow the guidelines for LLC names. You must include either “Limited Liability Company,” "LLC," or "L.L.C." in your business name.
Some words are restricted from use, like “University,” “Attorney,” or “Bank.” You may need to file additional paperwork for licensed individuals in the LLC if you provide medical or legal services. Other words are prohibited because they can confuse your LLC with a state or federal agency. Such words include “Treasury,” “FBI,” and “Secret Service.”
Your LLC name has to be unique and distinguishable from existing business names in the state. You can search the State of Idaho site to make sure your desired business name isn't already taken.
You may reserve a name by filing a reservation application with the Secretary of State for $20. The reservation is good for four months.
LLC owners are also known as members, and they hold a financial interest in the company. LLC members can be any of the following:
- Other LLCs
Management and Registered Agents
The LLC manager is like the chief executive officer (CEO) of your company. The manager oversees daily operations and sets the company's strategic direction. If you set up a manager-managed LLC, you'll act as a passive investor while someone else manages the business.
Your LLC may be member-managed instead. In this case, members are responsible for daily business operations. This usually works best for single-member LLCs.
Your LLC must have a registered agent. This is an individual or company that sends and receives legal papers on your LLC's behalf. The paperwork a registered agent may handle includes service of process and state filings.
Your registered agent has to be a state resident or an entity that's authorized to transact business in Idaho. A person in your LLC can be the registered agent, including yourself. Your registered agent must have a physical (street) address in Idaho.
If you decide to use a representation service instead of an individual, you'll have to pay a fee. Before listing another party as your registered agent, you must gain consent of representation.
To create your LLC in Idaho, you'll file a Certificate of Organization with the Secretary of State. You won't be able to do this online in Idaho (unlike some other states). Instead, you'll have to print a form and fill it out.
Your Certificate must include the name and address of your LLC as well as the name and address of your registered agent. You'll mail in your form along with a fee of $100 to file it. To expedite your filing, include an additional $20.
An operating agreement isn't a requirement in Idaho, but it's still a good idea to have one since it acts as a legal document that outlines your LLC's ownership and operating procedures. It basically acts as an articles of incorporation, bylaws, and shareholder agreement all in one document. This agreement details your LLC's economic and governing structure. You don't have to file an operating agreement.
An Employer Identification Number, also known as an EIN or Federal Tax ID, is like your LLC's social security number. You obtain one from the IRS, and you'll need it for filing taxes. Some banks may require you to have one to open a checking account for your business.
Forming an LLC is a pretty straightforward process, as long as you stick to all the rules and regulations the state requires. LLCs are the easiest, most affordable business structures to start, which is why they're a popular choice for small business owners.
If you need help with registering an LLC in Idaho or another state, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.