How Much Does an LLC Cost in Idaho (Filing Fees Explained)

Delina Chantel Yasmeh
Published by Delina Chantel Yasmeh | Author
Last updated: March 19, 2024
FACT CHECKED by Lou Viveros, Growth & Transition Advisor
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When starting an LLC in Idaho, you need to know all the compliance factors and costs that go into the formation process before you can plan your funds.

As a Mergers and Acquisitions specialist and a degree holder in tax law, I spent years helping individuals and businesses form LLCs and create joint organizations.

Working with our business expert in the state, we spent the past few weeks researching the Idaho LLC formation costs to help you know what to anticipate.

If you're gearing up to establish an LLC, it could be prudent to hire a professional LLC service in Idaho, thus avoiding mistakes that could slow down the process.

Quick Summary

  • It costs $100 to file the Articles of Organization online and $120 to file by paper for your Idaho LLC.
  • Upon approval of the business, additional costs include a registered agent service, taxes, licenses and permits, annual reports, and other documentation.
  • According to US News and CNBC, Idaho ranks 6th in Best State Economy and belongs to the Top-10 Most Tax Friendly State.
  • In my experience of forming LLCs in the state, I found that Idaho has low maintenance and initial cost.


Cost to Start an LLC in Idaho

A close up shot of a woman computing the LLC cost in Idaho

Before you could legally conduct business in the state, there are mandatory filing fees and optional expenses you have to shoulder.

1. LLC Formation Filing Fee ($100/Online-$120/Paper Filings - Mandatory)

The LLC filing fee in Idaho is $100 for online submissions and $120 for paper filings [1]. This offers a standard processing time of 2 to 7 days online and 3-4 weeks by mail.

However, you can also pay an extra filing fee of $40 for 1 business day expedited filing, or if you want your approval more quickly, you can pay an additional $100 for an 8-hour delivery.

I avail of expedited service for clients who wanted to start their businesses as soon as possible.

Check our article on how long does it take to start an LLC in Idaho.

2. Registered Agent Fee ($80-$300 Annually – Optional)

A person hiring a registered agent service in Idaho

In Idaho, all LLCs must have a registered agent.

While you can act as your own registered agent for free or designate an employee or a trusted friend to be one, it's best to hire a service expert to handle compliance according to Idaho law.

An Idaho registered agent service can cost a fee of $80 to $300, depending on the company you take on.

3. Name Reservation Fee ($20 - Optional)

LLC name reservation safeguards your entity's selected name until you submit formation paperwork to the Idaho state. You can file for registration and pay a $20 filing fee to hold the name for 120 days [2]. According to the Idaho Secretary of State's office, approximately 80% of businesses opt to reserve their LLC names before officially registering their entities, citing the importance of securing their preferred business identity early in the process.

Through my experience, I learned that the primary reason for a delayed application is that the business name is already taken and that it does not follow state regulations. It's advisable that you check the online portal and ensure the name is compliant with state guidelines.

Expenses Following the Approval of Your LLC

Here is a list of additional fees that you might incur when forming an LLC in Idaho.

1. Business License (Depending on the Line of Business - Mandatory)

A woman entrepreneur working on her business name reservation

Depending on the type of industry, you may need to apply for a business license from the state, county, or city where your entity is located. The cost varies depending on the nature of the business.

 

"Professional licenses must be acquired from the state licensing board relevant to the profession."

- Jon Morgan, CEO, Co-Founder & Editor-in-Chief of Venture Smarter

2. Annual Reports ($0 - Mandatory)

All LLCs and corporations in Idaho must submit an annual report to the Idaho Secretary of State free of charge.

After determining your filing date, you can submit the annual report online on the SOS website or print the filled-out document and mail it to the SOS office.

While it's a good thing that there are no penalties for late annual report filing in Idaho, the SOS will have to dissolve your LLC if you fail to do so within 60 days past your annual report filing deadline.

That's why I advise clients to file their annual reports on or before the due date to remain in good standing with the state.

3. Taxes (Depending on Income Bracket - Mandatory)

The Idaho state tax commission automatically categorizes LLCs as "pass-through" businesses, meaning only the company's individual participants file tax returns.

However, there are other tax options for an Idaho LLC. For example, your LLC will be liable to the 6.925% corporate income tax if you set it to be taxed like a corporation, according to the Idaho State Tax Commission [3].

Also, according to your income threshold, you might be obligated to pay taxes on your net profits at the state's tax rate of 1.125% and 6.925% if your Idaho LLC is taxed similarly to a sole proprietorship or general partnership.

An Idaho LLC operating agreement is a legally binding contract that enables the business to specify its guiding principles, day-to-day operations, and the shareholdings of each member.

You can draft an operating agreement for $0 or hire a professional service to create it for you at a cost between $100-$200.

Although the operating agreement is not filed with the state, I ensure my clients draft one since state laws automatically apply in the absence of the document.

5. Doing Business As (DBA) Registration ($25 - Optional)

You can do business and accept payments under a name other than your legal business name by submitting a DBA for a filing fee of $25.

A DBA also allows you to open an LLC bank account to receive checks and payments under the assumed business name.

An Idaho Certificate of Existence costs $10, and it shows that your LLC is permitted to carry out transactions and conforms with all local and state legislation.

When clients ask the importance of obtaining one, I inform them that the document is a good way to attract clients and investors, apply for loans, renew business licenses, and get premium business insurance.

7. Certified Document Copies ($10+$0.25 per additional page - Optional)

A business woman holding and reading certified document copies

The Idaho Secretary of State may provide certified copies for $10 plus $0.25 for each extra page. Certified document copies are genuine and accurate copies of company files and contain a stamp or seal of the SOS.

New LLCs should register for an Employer Identification Number (EIN) as soon as they file their Articles of Organization with the Idaho Secretary of State.

The Internal Revenue Service (IRS) uses this unique identification number to monitor every company's financial activity in the nation.

To apply, send Form SS-4 by mail or submit an online registration for free.

FAQs

What is the Penalty for Paying Idaho State Taxes Late?

The penalty for paying Idaho state taxes late is a 0.5% charge on the amount due per month.

What Payment Methods Can I Use To Pay Idaho's State Fees For Filing My LLC?

The payment methods you can use to pay Idaho's state fees for filing your LLC include e-check, PayPal, debit, or credit cards.

References:

  1. https://sos.idaho.gov/business-forms/
  2. https://legislature.idaho.gov/statutesrules/idstat/title30/t30ch21/sect30-21-303/
  3. https://tax.idaho.gov/taxes/income-tax/business-income/

About The Author

Author
Delina Chantel Yasmeh, J.D./Tax LL.M, specializes in Mergers and Acquisitions at Deloitte and PwC, managing billion-dollar transactions. Educated in Accountancy at California State University and holding advanced degrees from Loyola Law School, she is highly skilled in tax law. Delina also dedicates time to pro bono work for women and children.
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Growth & Transition Advisor
LJ Viveros has 40 years of experience in founding and scaling businesses, including a significant sale to Logitech. He has led Market Solutions LLC since 1999, focusing on strategic transitions for global brands. A graduate of Saint Mary’s College in Communications, LJ is also a distinguished Matsushita Executive alumnus.
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