Form an LLC in Idaho.

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Your LLC’s Name

Your new LLC’s business name must be sufficiently distinguishable from all other Idaho business entities registered or reserved with the Idaho Secretary of State. It costs $25 to register a business name.

The LLC name must contain, as the last words of the name, either the words “Limited Liability Company” or “Limited Company,” or one of the abbreviations “L.L.C.,” “LLC,” “L.C.,” or “LC.” Alternatively, the word “Limited” can be abbreviated as “Ltd.” and “Company” may be abbreviated as “Co.”

An available LLC name can be reserved with the Corporations Division of the Secretary of State’s office state for up to four months for $20.

Articles of Organization

In order to get your Idaho LLC up and running, you must first file articles of organization with the Idaho Secretary of State, along with a $100 filing fee. The filing fee is $120 if the articles of organization are not typed or if they include attachments.

Your LLC is considered officially “organized” when the original and one copy of the articles of organization are received by the Idaho Secretary of State’s office with the filing fee. The articles of organization must contain the following information:

  • The company name
  • The street address of the LLC’s registered office in Idaho
  • The name of the LLC’s registered agent at that office
  • A statement as to whether the LLC will be manager-managed or member-managed
  • If the LLC will be manager-managed, the names and business addresses of the initial manager(s)
  • If the LLC will be member-managed, the names and addresses of the initial member(s)

The articles must be executed (signed) by one of the following:

  • A manager if the LLC will be manager-managed
  • A member if the LLC will be member-managed
  • An organizer if the LLC has not yet been formed
  • An attorney-in-fact
  • A fiduciary if the LLC is in the hands of a receiver, trustee, or other court-appointed fiduciary

An organizer can be any natural person over the age of 18, or a legal entity such as a corporation-but they don’t have to be a member of the LLC. The person signing the articles must indicate beneath or opposite his or her signature their name and title within the LLC.

The articles can also contain other items that the members desire to include (presuming they don’t conflict with state law), even if they are also included in the operating agreement.

One certified copy of the articles of organization will be issued by the Secretary of State’s office, and the other certified copy will be returned to the organizer or members.

Registered Agent and Office

Idaho LLCs are required to have a registered in-state agent to receive official administrative and legal correspondence from the state. The registered agent can be an individual Idaho resident, or an LLC or corporation authorized to do business in the state. The business office of the registered agent must be the same as the registered office, and it must not be just a Post Office box.

The registered office may be any place of the LLC’s business in Idaho.

Operating Agreement

Another vital document for the LLC is the operating agreement. The state doesn’t officially require your LLC to have this-but it’s important because it officially documents how your LLC will operate. The operating agreement should name the members, specify how much each member has invested, explain how profits will be divided, and state how much proportional “weight” each member has when issues are voted upon. This can be amended in a way that’s specified by the agreement itself, or in a manner permitted by state law.

If the LLC has more than one member, the initial operating agreement must be approved in writing by all the members.

The operating agreement may also set forth meeting requirements such as the amount of required notice, what constitutes a quorum, voting rules, and so on, but it doesn’t have to. Normally, however, the operating agreement does list requirements for the LLC that are already listed in state law and regulations. It can also include such items as restrictions or constraints on the power of the members to adopt, amend, or repeal the operating agreement. If there is more than one member, the operating agreement must initially be approved unanimously in writing by the members.

Membership in the LLC

An LLC is required to have one or more members; each member must be either a natural person or a business entity. Members may become a member of or acquire an interest in the LLC when it is first started (using the method set forth in the operating agreement), or with the written approval of all the LLC’s members.

To join the LLC, the prospective member usually needs to make a contribution of some kind-for instance, pay cash or transfer property to the LLC-or make a binding obligation to do so. However, a member may be admitted to the LLC without acquiring a membership interest if the rules in the articles of organization and operating agreement permit it, or if the members vote to do so and the admission is documented in the LLC’s records.

An LLC member can only resign in accordance with procedures stated in the articles of organization or the operating agreement. In Idaho, a member may resign after giving 30 days’ written notice to all the other members, or as specified in the operating agreement. Some operating agreements prohibit withdrawal for the life of the LLC.

If the member has the right to withdraw, but the withdrawal still breaches the operating agreement, or if the withdrawal occurs as a result of the member’s wrongful conduct, the LLC can recover damages, including the costs of replacing the services the withdrawn member was obligated to perform. The LLC may also offset these damages against the amount otherwise distributable to the member, in addition to pursuing any remedies provided for in an operating agreement or otherwise available under law.

Unless the operating agreement states otherwise, the dissociation (loss of membership rights) of an LLC member automatically causes the LLC to dissolve unless all the remaining members vote to continue the LLC within 90 days of the dissociation.

Unless otherwise stated in the operating agreement, managers are elected, removed, or replaced by a vote of more than half the members, and serve for an indefinite term.

Ongoing Requirements

Idaho LLCs must file an annual report with the Idaho Secretary of State’s office before the last business day of the anniversary month of the LLC’s organization. Unlike most states, there is no filing fee if the report is filed by the due date. The report must include the following information:

  • The LLC’s name and the state or country where it was organized
  • The street address of its registered office
  • The name of the LLC’s registered agent at that office
  • The street address of the LLC’s principal place of business
  • If the LLC is manager-managed, the names and addresses of the manager(s)
  • If the LLC is member-managed, the names and addresses of the current member(s)

Idaho LLCs are also required to keep the following records and documents open for inspection at its principal office:

  • A list of all current and former members and managers
  • A copy of the articles of organization and any amendments
  • Any powers of attorney under which the articles have been executed
  • Copies of the LLC’s federal, state, and local income tax returns and financial statements, for the past three years
  • Copies of current and former operating agreements and any amendments
  • A document listing the amount of cash and/or agreed value of property or services contributed by each member
  • Times or events that would trigger any additional member contributions
  • A document specifying any events that would require the dissolution of the LLC

Also, it’s a very good idea to keep on file and available the minutes of the meeting of the board and any committees of the owners or members.

Dissolution

An LLC is dissolved when any one of the following events occurs:

  • Event(s) specified in the articles of organization or operating agreement that
  • All LLC members agree in writing to dissolve the LLC
  • A member’s dissociation (loss of membership rights) unless all members consent to continue the business within 90 days
  • Event that makes it illegal for the LLC to continue
  • A court order ordering dissolution
  • Administrative dissolution

Taxes

An LLC does offer some tax advantages over a corporation’s structure, including the availability of more deductions. The biggest advantage is that an LLC is not required to be a separate tax entity like a corporation. Instead, it can be a “pass-through entity” for tax purposes, so that the LLC owners (members) show business losses or profits on their personal tax returns.

Idaho’s business income tax rate is 7.6 percent of taxable Idaho income. The state imposes a minimum tax of $20 on all companies.

Learn more about forming an LLC in Idaho

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silver

$49

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The Basics To Get You Started Preliminary company name clearance and filing of Articles of Organization.

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$149

+ $100 (state fee)

everything from silver+

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EIN / Tax ID Number Providing an EIN is required to open a
business bank account and is required to
file business tax returns.

Personalized Operating Agreement Includes most common provisions to protect members from liability

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$299

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Expedited Filing Expedited processing speeds the turn- around time for your order.

Customized LLC Kit Personalized slip binder and embossed seal with your company name and date of fomation.

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Commonly Asked Questions For Starting a Idaho LLC

How is an LLC Taxed?
For federal income tax purposes the profits of an LLC (Limited Liability Company) "pass through" to the personal income of the members/owners. In the case of a single member LLC it is taxed the same as a sole proprietorship (i.e. typically filed on the schedule C of the owner's personal income tax filing). In the case of a multi member member it is taxed the same as a partnership (i.e. a 1065 partnership return is filed with the IRS, with a schedule K-1 being supplied to each partner/member showing the proportional profit/loss allocated to them, with this being filed on the schedule C or E).
NOTE: These are general tax explanations and may not apply to everyone. You should confer with the appropriate accounting/tax specialists to make sure you understand your personal tax liability.
What is the Management Structure of an LLC?
An LLC is typically managed by its members/owners (referred to as member-managed). In that respect an LLC is unlike a corporation, which has a much more rigid and defined management structure, including directors and officers. All owners of the LLC are typically referred to as members, and they can have control and voting interest proportional to their ownership interest, or in proportions different from their ownership interest; however the members agree.
Are Non-US Residents allowed to own a Corporation of LLC?
There are no citizenship or residence requirements for ownership of a C Corporation or an LLC. The S Corporation however does not allow nonresident aliens to be shareholders (owner), but any US citizen or resident alien may be a shareholder (owner). You would, of course, require an in state street address for the state to forward official legal and tax correspondence including service of process, known as the registered agent address, but neither residency nor citizenship is required for ownership of a C Corporation or an LLC.
Can I form an LLC with just one member?
There was a time when almost every state required the LLC to have two or more members, but that is no longer the case. This important change came in response to revised IRS regulations that clearly permitted single-member LLCs. As a result, in most states, if you plan to be the sole owner of a business and you wish to limit your personal liability, you can choose between forming a corporation or an LLC.
What is an Operating Agreement?
The operating agreement is akin to a partnership agreement for a General Partnership or Limited Liability Partnership (LLP). It is an internal contract amongst the members/owners of the LLC, and it lays out such things as ownership interest, member responsibilities, accounting method, adding or removing members, terms for concluding the LLC, etc. It is generally not required by a given state for forming an LLC (with the exception of New York), although it is certainly recommended. When dealing with private companies for financing issues (loans, mortgages, etc.) it may be required by that company. A customizable operating agreement is included with the LLC/Corp Kit.
Can another business entity be a member of an LLC?

In the majority of states, The members of an LLC can be individuals, corporations, or other LLCs. These members of the LLC can be out of state residents or even foreign nationals. Furthermore there is no limit to the amount of members that an LLC can have.

The flexibility of an LLC in contrast to an S Corporation is stark considering the S corporations are limited to 75 shareholders who must either be United States citizens or Lawful Permanent Residents.

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