How to Form an LLC in Idaho

Introduction

The process of forming an LLC can be confusing and intimidating. Luckily for you, however, we’ve created a step-by-step guide to help get you started. Here’s what you need to know about forming an LLC in Idaho:

1. Choose a Name

First, you must choose a name for your new business entity. This can be anything, but there are some rules to follow. First, the name cannot include any references to “bank” or “trust”, as it may confuse customers into thinking that your company is a bank or financial institution. Second, the names of other companies in Idaho are already taken (for example, “Idaho Bank” and “Idaho Trust Company”). You may not use those words in your business name. If you plan on operating internationally, be sure that the name doesn’t violate any international laws concerning trademarks or patents owned by another party. Lastly—and this is important—the chosen name should not be too similar to other companies’ names within the same industry.

2. Register Your Entity

The next step is to register your entity. Registering your LLC involves filing Articles of Organization with the Idaho Secretary of State, which will require a filing fee. You will also have to provide certain information about your business and its members and managers.

You can file online or in person at any Idaho county clerk’s office that has a marriage license bureau or at a Vital Records Office located within the state’s borders (you can find one here). If you choose to submit your documents in person, be sure to bring two forms of identification (one with photo), along with the following:

• Articles of Organization
• Affidavit for Service by Mail/Publication (if applicable)
• Name Change Statement (if applicable)
• Tax Clearance Letter (if applicable)

3. File Articles of Organization

You must file articles of organization with the Idaho Secretary of State before you can register your entity.

Articles of organization are filed online by clicking on the “New Business” tab, then choosing “Articles of Organization – Nonprofit” from the drop-down menu.

You can also file articles by mail to: Idaho Secretary of State Division of Corporations PO Box 83720 Boise, ID 83720-0080

4. Create an Operating Agreement

An operating agreement is a document that outlines the terms of your LLC and how it will be operated. It’s like a contract between you and the other members of your LLC and should include items such as:

• What happens if one owner resigns or dies?
• How much money each person contributes to cover expenses
• What happens if there’s an argument between partners (and what steps need to happen before they can take legal action)

5. Apply for Licenses and Permits

The final step in forming an LLC is to apply for any licenses and permits you need. This can be a lengthy process and will vary depending on your business type, so make sure to check with the Idaho Division of Corporations before completing this step. In general, though, you’ll want to do the following:

• Make sure that your LLC has been formed before applying for any licenses or permits. The state will not issue them if it believes there might be problems with your legal status as an LLC.
• Contact each agency where you plan on doing business and find out what licenses or permits are required by law and how long it takes them to process applications (the time frame varies). You may also have to notify certain agencies about who is acting as company officers—that is, the people running day-to-day operations—in case anything happens while they’re working on other projects during normal business hours.

6. Obtain an EIN

To get an EIN, you’ll need to visit the IRS’s website. There, you can either call (800) 829-4933 or fill out Form SS-4.

What is an EIN? An Employer Identification Number (EIN), also known as a Taxpayer Identification Number (TIN), is like your social security number for business purposes. It’s used by businesses and self-employed individuals to identify themselves to the IRS and their state governments, so they can be sure that all business entities are properly taxed and regulated.

Why do I need one? You’ll probably want to obtain an EIN if:

• You’re planning on incorporating your business in Idaho;
• You have employees working for you; or
• You plan on having clients pay via check rather than cash.

Takeaway:

You’re a small business owner in Idaho, and you want to start an LLC. You’ve got the idea, the passion and drive to make it happen—but how do you go about getting started?

LLC is short for “limited liability company.” It’s a business structure that combines elements of both corporations and partnerships. This setup offers its members protection from personal liability while still allowing them to keep some control over the management of their businesses (like how much they can sell their shares).

There are two steps involved in forming an LLC: filing articles of organization with your secretary of state or other relevant office; and registering your business name with your municipal clerk (or county clerk if there’s no city government).

Conclusion

I hope you’ve found this guide useful, and that it helped you get started with forming an LLC in Idaho. If you have any questions about the process, please feel free to reach out!