How to form an s corporation in Idaho
Introduction
If you’re looking to start a business in Idaho, you might be wondering if forming an S corporation is right for your needs. An S corporation is a special type of corporation that gets taxed differently from other types of companies. It’s not the only way to form a company in Idaho, but it does have some advantages over other types of corporations. Here’s how to complete the process of forming an S corporation in the state:
Decide on a business name.
The next step is to choose a business name. The first thing you’ll want to do is make sure that the name you pick isn’t already taken by an existing business or corporation in Idaho. You can do this by doing a search on the Trademark Avenue website, which will tell you if any similar businesses exist in your area.
You also want to make sure that your company’s name isn’t too long or difficult to remember, because doing so will only make it more difficult for customers to find and remember your brand when they’re shopping around for products/services like yours. And finally, though it might seem obvious: don’t give yourself permission to just go ahead and use every variation on “Apple” that comes into mind—there are likely other Apple-related companies out there who would find themselves pretty offended if they learned that someone was using their copyrighted name without permission!
Choose a registered agent.
Once you have researched and determined the name of the business and have decided on a location, it’s time to start forming an s corporation. The next step is choosing a registered agent for your business. A registered agent is a person or business that agrees to accept legal papers on behalf of the corporation. This can be any lawyer, bank or other financial institution that is willing to accept these documents for your company. Even though all states require this service, it’s still important to check with your state regarding who they recommend as being eligible providers of registered agent services since each state offers different requirements and recommendations when it comes down selecting who can fulfill this duty for you
Register the business with Trademark Avenue.
You need to register your corporation with trademark Avenue in order to legally form an s corporation in Idaho. This is a requirement for all corporations, and it can be done online or by mail. Once you have registered with the secretary of state, you will receive a certificate proving that you have properly formed your business.
Reserve a fictitious name.
A fictitious name is an assumed business name that you use in exchange for services rendered. In other words, it’s a brand that identifies your business; for example, if you’re a dog walking service and want to do business as “Doggy Dude,” then Doggy Dude would be your fictitious name.
To reserve such a name, you must submit an application through the Trademark Avenue website. If you fail to use your reserved fictitious name within one year after reserving it—or within five years if at any point during those five years someone files an action against you related to breach of contract—your reservation will be canceled automatically and no longer available for use by anyone else who may have reserved it in between those dates (including yourself).
Draft and file articles of incorporation.
Once you have decided on a name and have completed the articles of incorporation, they must be filed through Trademark Avenue. In Idaho, this is a required document and it must include:
- The name of the corporation, its purpose, and the address where it will operate (if different than where you are registered as an agent).
- The names and addresses of all members who own at least 20 percent or more equity in your business
- A list of any outstanding debt or other liabilities that have been incurred by the corporation (such as loans from banks)
You will be provided you instructions on how to file the articles when you begin this process. Articles are not required in Idaho but we highly recommend that you get them drafted before forming your business so that there are no questions about what was included.
Obtain an Employer Identification Number (EIN) from the IRS.
Obtain an Employer Identification Number (EIN) from the IRS. The EIN is a tax-reporting number that can be obtained by phone or online at the IRS website. To apply for an EIN, you need to provide your Social Security number and other identification information, including your name, address, and employer type.
Draft an operating agreement.
You’re ready to create your S corporation, so let’s get started by drafting an operating agreement. An operating agreement is a contract between shareholders that details how the business will be run and managed. It can be used as evidence in court if there are disputes among shareholders, but it’s important to have one even if you never intend on suing any of your co-owners.
An operating agreement should include provisions for:
The name of the corporation (and any variations)
How many shares each shareholder owns and what percentage of total ownership each has
How much money each shareholder contributed towards starting up the company
What happens if one or more shareholders passes away or decides to leave the company
Requirements for removal from office
Filing as an S corporation in Idaho can help protect personal assets or reduce tax liability, but it requires additional paperwork to complete the process of forming a corporation in the state.
An S corporation is a business entity that’s taxed as a pass-through entity, meaning the company pays taxes on its income at the individual level. This can help protect personal assets from liability and reduce tax liability for owners. The formality of filing as an S corporation in Idaho requires additional paperwork to complete the process of forming a corporation in the state.
Conclusion
Filing as an S corporation in Idaho can help protect personal assets or reduce tax liability, but it requires additional paperwork to complete the process of forming a corporation in the state. If you want to start your own business as an S corporation, we advise that you check out Trademark Avenue’s website for in-detail information.
