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How to Set Up an Idaho LLC on Your Own

Technically speaking, you don’t have to use an LLC formation service like ZenBusiness or LegalZoom. These services are incredibly helpful, but you can save money by completing the process yourself.

You can read our complete guide to DIY an LLC setup in Idaho, but here’s a quick look at the process: 

Choose a business name

Every LLC in Idaho needs a name that’s memorable and gives potential clients a good idea of what goods or services are available. The name also needs to be unique — both for legal reasons and so your business stands out from the competition.

Appoint an ID registered agent

As we’ve mentioned in this guide, every LLC needs an agent who can accept service of process on your behalf. In all states, you can act as your own registered agent as long as you have a physical address in the state. That said, we generally recommend that you appoint someone else (like an online service) to act as your agent.

File the Certificate of Organization

This document, once filled out and filed, officially forms your business in the state of Idaho. You’ll need to provide some important information, including your contact information, your business address, signatures for your LLC’s members, and more. Idaho has a $100 filing fee.

Setting up the LLC is as easy as 1-2-3; it’s the maintenance requirements that are a bit more complicated:

Register for and pay taxes

If you have employees, you’ll need to get an Employer Identification Number from the IRS. Then there are state-specific taxes, too. Regardless of how your Idaho business is taxed, the highest income tax rate of 6.925%. That’s the flat rate for LLCs taxed as corporations. LLCs taxed as individuals will have rates ranging between 1.125% and 6.925%. You’ll also need to account for the sales tax of 4%. For more information on these and other miscellaneous taxes, check out the Idaho State Tax Commission.

Get licenses and permits

There’s no general state business license in Idaho, but that doesn’t mean you won’t need to get professional licenses, such as those discussed on the Licenses, Permits, and Regulations page of the Idaho business website.

Create an operating agreement

Even single-member LLCs should create a “master document” that sets out how the business will operate, both now and in the future.

File your annual report

Each year, your LLC will need to file an annual report to update the state about the standing of your business. Unlike most states, Idaho does not charge a filing fee for this document. It’s due by the end of your LLC’s anniversary month.

Obtain business insurance

Every business with employees needs to maintain workers’ compensation insurance and a commercial vehicle policy for company-owned vehicles. You may also want to get a general business liability policy, too.

Get a business bank account

You should sign up for a business bank account so you can write checks and make purchases in the name of the business instead of pulling from your personal accounts (a legal no-no).

This is just the tip of the iceberg, though. For more detailed guidance, we recommend contacting an attorney or checking out the full Idaho LLC Formation Guide.

What Is an Idaho LLC?

LLCs are formal legal entities that are typically taxed similarly to sole proprietorships and general partnerships, in that the owners include any company profits or losses into their personal returns — the LLC itself does not owe income taxes. For more a more in-depth description see: What is an LLC?

The Total Cost of Forming and Maintaining an LLC in Idaho

In addition to the costs of a business formation service or hiring an attorney (which are optional, as we’ve discussed), there are quite a few other required and optional expenses when forming and maintaining an Idaho business. You cannot form an LLC in Idaho without first filing the Certificate of Organization, the document that officially registers your business within the state. This filing costs $100 to submit or $120 if you file using a paper form.

Another key filing for businesses in Idaho is the Annual Report. The form itself is simple, but it keeps the state up-to-date about some simple but vital information about your business. Unlike a lot of states, Idaho does not charge a filing fee for this, so as long as you file on time, it won’t cost you anything. Read more about Idaho costs – Idaho LLC costs.