Why Start an ID Corporation?
The state of Idaho offers a range of business financing and incentives, giving businesses in Idaho a competitive edge. Your corporation may be able to take advantage of these incentives, provided it meets qualifying criteria.
For example, if you meet the requirements, your business may be able to qualify for the Idaho Business Advantage. The Idaho Business Advantage gives your business access to several tax credits and rebates if your business has invested at least $500,000 in new facilities and created at least 10 jobs paying at least $40,000 annually.
For a lot of entrepreneurs looking to start a larger business, ID incorporation may be the best choice. As a corporation, your business is able to buy and trade stock, and when it comes to excess profits, corporations offer more flexibility than a limited liability company (LLC). A corporation is allowed to pass income and losses to its shareholders, who report taxes on an individual tax return at ordinary levels.
Is an LLC Better Than a Corporation?
It all depends on your goals. For smaller businesses, limited liability companies are usually a better option. An LLC is easier to set up and receives many of the same benefits as corporations, but with less regulation.
Learn more about forming an Idaho LLC so you can decide which business entity is right for you.
Benefits of Forming an Idaho C Corporation
Benefits of Forming an Idaho S Corporation
It offers several advantages similar to those provided by a C Corp including, but not limited to:
- Options for creating, transferring and selling stock, though not as many as a C Corp
- The capacity for up to 100 shareholders
- Simpler rules than those that apply to C Corporations
- Easy transfer of ownership simply by selling your stock
- The possibility of saving money by allowing you to pay less self-employment tax
In this guide, you’ll find information on naming your corporation, getting a Registered Agent, the fees you’ll need to pay, business taxes and much more. We also cover what you'll need to register your corporation and how you'll interact with the Secretary of State in Idaho.
How to Form an ID Corporation Yourself in 6 Steps
Choose a Unique Business Name and Complete a State Business Search
Every Idaho business must have a unique name that isn't already claimed by another business in the state. If you’re having difficulty coming up with a name, try using our Business Name Generator to gather ideas. You'll need to follow a few naming rules, which you can read about in detail on the Idaho Corporation Names page.
Once you’ve picked a name, you’ll need to make sure it’s available in Idaho. To see whether another company in the state is using your desired business name, use our tool to do an Idaho entity search. Or you can carry out a name search on the state's website.
Provide an Official Business Address for Your Corporation
All ID corporations must have a designated address. It could be the address of your home (if you’re running the company from your residence), a building where your office is located or any physical address of your choice. The address can be outside the state of Idaho and can be a P.O. Box.
You may also be able to use a virtual mailbox for your business address. Incfile can provide you with an Idaho virtual mailbox where we'll receive your mail, scan it and upload it for your online review. This can be especially helpful if you run a home-based business and don't want your residential address published as part of your business public record.
Assign a Registered Agent
Someone who receives official correspondence and is responsible for filing documentation with the ID Secretary of State is known as a Registered Agent. Every Idaho corporation is required to have a Registered Agent.
You can fill this position yourself, assign another manager in your business or use a Registered Agent service. If your Registered Agent in Idaho is a person, they must have a physical street address in Idaho and must be available during business hours to receive important documents on behalf of your company. You'll appoint your Registered Agent when you file your Articles of Incorporation with the Secretary of State and formally create your corporation.
All of Incfile’s business formation packages include Registered Agent service. It’s free for the first year and just $119 per year after that. You can also access a digital dashboard to view any document we've received on your behalf.
File Your Articles of Incorporation with the Idaho Secretary of State
Once you've gathered all the information for your corporation, you’ll need to file your Articles of Incorporation with the Secretary of State. This will officially create your business.
Your Articles of Incorporation can be filed online via the state's digital portal, and if you do so you'll save the $20 manual processing fee associated with paper form filing. You can also mail or deliver the form to the Office of the Secretary of State, or Incfile can file it on your behalf. The ID Corporation filing fee is $100.
Mail or Deliver to
Office of the Secretary of State
450 N 4th Street
PO Box 83720
Boise ID 83720-0080
You only need to file your Articles of Incorporation in Idaho once, but once a year thereafter, you'll also need to file an annual report with the Secretary of State in ID. Incfile can remind you about this every year, or we can do it for you if you have us handle the paperwork.
What are the fees and requirements to incorporate in Idaho?
Within 60 days immediately preceding first day of anniversary month.
Get an Employer Identification Number (EIN) from the Internal Revenue Service
You'll need an EIN to identify your business to the IRS. You use this number for filing and paying taxes, submitting payroll information and payments for your employees and opening a business bank account. You can obtain one directly from the IRS, or Incfile can get one for you as part of the ID corporation creation process.
A set of rules that govern how a corporation will be run, bylaws detail how many directors the corporation will have, whether the board of directors will have annual meetings and what the voting requirements will be, among other things.
Some states legally require companies to create bylaws, and the state of Idaho is one of them. You don't however need to file your bylaws with the State. Simply keep them with your other business records.
It's always a good idea to write and follow bylaws to protect your business from any future changes and events.
Types of ID Corporations
Title 30, Chapter 21, Part 9, § 30-21-901 also specifies a few of the professions permitted to form a Professional Corporation in Idaho, which includes, but may not be limited to:
- Landscape Architects
- Occupational Therapists
- Physical Therapists
- Professional Geologists
- Certified or Licensed Public Accountants
- Social Workers
Check with the Secretary of State to confirm whether your business should and can be a Professional Corporation.