How to Form an LLC
1. Find a Business Name
- Business Search: sozbiz.idaho.gov
Use the state business search engine to check whether a business already exists with your desired business name. Click “Advanced Search Options” to expand the filter and select “Contains” and “Active Entities Only.”
The name of your limited liability company must contain the phrase “limited liability company” or “limited company” or the abbreviation “L.L.C.,” “LLC,” “L.C.,” or “LC.” “Limited” may be abbreviated as “Ltd.,” and “company” may be abbreviated as “Co.”
If your limited liability company is a professional entity, the name may include the word “professional” or the letter “P” at the beginning of any of the permitted abbreviations.[1]
2. Select a Registered Agent
Idaho’s domestic or foreign business entity must designate and maintain a registered agent.[2] A registered agent must be available during business hours and have a valid address that can accept service of process and other services for your business.
3. Register the LLC
There are two ways to apply for the registration of your LLC: online or by mail.
Option 1: File Online
Go to sosbiz.idaho.gov to access the state’s online filing system.
For foreign LLCs, select “Foreign Registration Statement (Limited Liability Company).”
Enter your first and last name, email address, phone number, and password.
Standard processing takes 10 to 15 business days, while expedited service takes eight hours. Same-day service must be received by 1 p.m.
Select between standard LLC or professional LLC. Enter your desired business name after checking in the search engine to confirm that it isn’t taken.
If this is the same address, enter it in both fields.
Indicate whether your registered agent is commercial or non-commercial, and use the search bar to select your agent. If they are not already in the database, click “Add New Agent.”
There must be at least one appointed governor in an LLC. Select “Add” if there is more than one governor.
Provide your electronic signature and the date.
Option 2: File By Mail or Email
Complete the form and send the document to the provided address with an enclosed payment.
Certificate of Organization – Limited Liability Company – For in-state entities.
Filing fee: $120 check made payable to the Idaho Secretary of State
Mailing address: Office of the Secretary of State
450 N 4th Street, PO Box 83720, Boise, ID 83720-0080
Foreign Registration Statement – For out-of-state entities.
Filing fee: $120 check made payable to the Idaho Secretary of State
Mailing address: Office of the Secretary of State
450 N 4th Street, PO Box 83720, Boise, ID 83720-0080
4. Obtain an EIN
- Apply Online: www.irs.gov
- Apply by Fax/Mail: Form SS-4
Every business in the U.S. is required to have an Employer Identification Number (EIN), which is a unique nine-digit tax ID number assigned to every business.
5. Write an Operating Agreement
In Idaho, it is not mandatory for LLCs to draft an operating agreement. It is, however, still recommended.
Download: PDF, MS Word, OpenDocument
6. Choose a Tax Classification
Below are the most common types of LLC tax classification:
- LLC – An LLC is typically formed as a sole proprietorship (one member) or a partnership (two or more members). Each owner or partner must individually pay income tax on the profits.
- S-Corporation – An S-corp sends all business profits and losses to the shareholders, who must pay income tax on the profits. To file as an S-corp, an LLC must file IRS Form 2553 within 75 days of formation.
- C-Corporation – A C-corp files taxes as a separate corporate entity. To file as a C-corp, an LLC must file IRS Form 8832 within 75 days of formation.
7. File Annual Report
Both domestic and foreign LLCs must file an annual report with the Secretary of State. It must be filed within one year of the LLC’s registration and every year thereafter.[3]