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.
Working with our legal team, we spent the past few weeks researching the Idaho LLC formation costs to help you know what to anticipate.
Here’s what you need to know.
Quick Summary
- It costs $100 to form an LLC in Idaho online, which covers the Certificate of Organization.
- All Idaho LLCs must submit an annual report, and failure to do so can result in the dissolution of the LLC.
- LLCs in Idaho are treated as pass-through tax entities, but there are other tax options you can choose from for your firm.
How Much Does an LLC Cost in Idaho?
An LLC in Idaho costs $100 to file the Certificate of Organization online. If you do manual paper filing, the LLC costs $120.
Also, there are other costs that you should anticipate paying depending on the services you take during the process, such as hiring a registered agent, paying LLC taxes, and filing annual reports, among others.
Idaho LLC Filing Fee
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 expedited filing, or if you want your approval more quickly, you can pay an additional $100 for same-day delivery.
Check our article on how long does it take to start an LLC in Idaho.
Idaho Registered Agent Service Fee
In Idaho, all LLCs must have a registered agent.
An LLC’s registered agent is responsible for drafting the certificate of organization, handling all legal letters on behalf of your Idaho LLC, and promptly delivering critical messages to you as the business owner.
While you can act as your own registered agent 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.
When hiring professional registered agent services for your Idaho business, ensure they meet the following secretary of state guidelines:
- Must have a physical Idaho office address
- Must be eligible to handle legal papers
- Must be available throughout regular office hours
- Must be of legal age, 18 years or older
An Idaho registered agent service can cost a filing fee of $50 to $300, depending on the company you take on.
Idaho LLC Taxes
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 [2].
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.
Other LLC Filing Costs
Here is a list of additional fees that you might incur when forming an LLC in Idaho.
1. Business Name Reservation
LLC name reservation safeguards your entity's selected name until you submit formation paperwork to the Idaho state.
Reservations could be eligible for renewal if extra time is required depending on the organization type.
LLC owners must first search for an Idaho LLC name to see if the desired name is available before filing to reserve it.
This procedure is quick and straightforward, thanks to the Company Search feature on Idaho's secretary of state business website.
You only need to look up your preferred name to check whether it's already taken. Remember that the state of Idaho has additional limits on business entity names that you must adhere to.
Once you verify that your desired business name is available, you can file for registration and pay a $20 filing fee to hold the name for 120 days [3].
2. Doing Business As (DBA) Registration
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.
Using a DBA assists you in developing a brand identity for your business entity that shows it in a professional light to clients and suppliers.
A DBA also allows you to open an LLC bank account to receive checks and payments under the assumed business name.
3. Idaho Annual Reports
All LLCs and corporations in Idaho must submit an annual report to the Idaho secretary of state. The Idaho LLC annual report fee costs $0.
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.
If your business name has changed, you cannot file an annual report with the State of Idaho to update that information. You must first submit an amendment to change a company's name.
4. Certificate of Existence
An Idaho LLC certificate of existence demonstrates the existence of your corporation in the state of Idaho.
This state-sealed document costs $10, and it shows that your Idaho LLC is permitted to carry out transactions and conforms with all local and state legislation.
You might also use this Idaho certificate to apply for loans, renew business licenses, and get premium business insurance.
5. 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.
You can choose to have certified papers such as the certificate of organization, operating agreement, yearly reports, and a certificate of existence if you want to apply for business loans, secure investors, or renew a business license.
6. LLC Operating Agreements
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.
Once signed by all parties, the agreement takes on legal significance and becomes enforceable; it can only be modified by submitting an amendment in writing.
You can draft an operating agreement for $0 or hire a professional service to create it for you at a cost between $100-250.
7. EIN/Tax Id Number
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.
8. Business Licenses
Acquiring a company license is another expense for running an LLC in Idaho.
Depending on your business, you may need to apply for a business license from the state, county, or city where your business is located.
It is crucial to check with your local government to see the costs in your region, as business licensing fees differ by location.
Idaho Foreign LLC Registration
If you're registering a foreign LLC in Idaho, you must submit your "Foreign Registration Statement" online before doing business in Idaho.
The filing price for online foreign LLC submissions is $100; for paper submissions, it is $120.
While this is a one-time file, once approved, you can proceed without further concern.
FAQs
How Are Idaho LLCs Taxed?
Idaho LLCs are taxed as pass-through entities by default. This means all taxes pass through the business onto the individual incomes of the shareholders and members. However, you can set your LLC to be taxed as a corporation or a general partnership and incur the tax rates for that business structure.
How Long Does Idaho State Take To Process Annual Reports?
Idaho state takes 7-10 working days to process annual reports.
Do You Need Professional Help With Your Idaho LLC?
Incorporating a limited liability company in Idaho can be daunting if you don't know what to expect. But hiring a professional Idaho LLC service can make the process easier and save you more time and money.
Working with our legal team, we've reviewed and tested these Idaho LLC companies and can vouch for their affordability, faster processing time, and top-notch service quality.
They also have professional attorneys who can guide you on navigating the stringent Idaho LLC laws and help you stay on top of compliance filing.
References:
- https://sos.idaho.gov/business-forms/
- https://tax.idaho.gov/taxes/income-tax/business-income/
- https://legislature.idaho.gov/statutesrules/idstat/title30/t30ch21/sect30-21-303/
