Should you form your LLC in Idaho? We've collected the relevant information that will help you make this decision.

Pros

  • Taxed as a partnership
  • Low cost of living
  • Low cost of doing business

Cons

  • Personal income tax rate of 7.8%

Cost of doing business

  • $100 filing fee / $0 annual report

Privacy

  • Owner disclosure in annual report

Forming an LLC in Idaho

The name
In order to communicate to the public that your new business is an LLC, its official name will need to end with one of the following signifiers (or abbreviation of): “Limited liability company”,  “Limited Company”, “L.C.”, “LC”, “LLC”, or “L.L.C.” In addition, it is required that the name of your business is not intentionally misleading to consumers, for any reason. Your company’s new name must also be completely unique, and not deceptively similar to any other organizations name or trademarks. There are also certain restrictions placed on several terms common to the engineering industry. Do a FREE name search now.

Ownership
The owners of an LLC are called “members.” The following information must be required regarding your LLCs members:

  • Required number of members
    Idaho LLCs must have at least one member or manager listed in their incorporation documents.
  • Age restrictions
    LLC members in Idaho may be of any age.
  • Residence restrictions
    There are no residence restrictions imposed on LLC members in Idaho.
  • What information needs to be included in the Articles of Organization?
    LLC Members in Idaho are required to list their name and address in their Articles of Organization.

Requirements for the Articles of Organization

The Articles of Organization is a document that must be filed during the LLC formation process in every state. Here is the information that must be included in this document when filing in Idaho:

Registered agent information
All Idaho LLCs must have a registered agent on file, and submit their name and address (which cannot be a PO box). This agent will be required to be accessible during standard business hours, and act as the state’s point of contact with the company. Learn more about registered agents.

Additional Idaho filing requirements

Many states have steps in the LLC formation process that are unique to that state. These can also vary at the municipality or county level as well. Here are the atypical steps required throughout all of Idaho:

Initial report deadlines
New LLCs in Idaho are required to file an initial report within six months of incorporation.

If your business is a professional practice
Professional service companies are permitted to form under the professional limited liability company (PLLC) structure.

Idaho LLC Taxation and Fee Requirements

There are several tax and fee requirements that must be addressed by LLCs in Idaho. They are as follows:

Taxation
All states have complex taxation requirements. For more information regarding taxes in Idaho it is advised that you visit the state’s official business related website. 

Annual report requirements
LLCs in Idaho are required to file an annual report every year during the company’s anniversary month. There is no cost associated with this filing. Learn more about annual reports.

Tax identification numbers
Idaho requires an EIN (employee identification number) for all LLCs that will have employees, and most banks will require one to open accounts. Idaho does not require LLCs to obtain state tax ID numbers. Learn more about EINs.

Business license requirements

The business licenses and permits required in Idaho vary wildly depending on the county or municipality in which your new LLC is located. If you would like to see more in-depth information on licenses and permits, please feel free to visit the content in our learning library that covers business licenses and permits.

Need an Idaho corporation instead? Click here.