How to form an LLC in Idaho

Who should form an LLC in Idaho?

Anyone who lives in Idaho or runs their business from there. If you form in another state but operate in Idaho, you will usually have to register there as a foreign LLC anyway, paying both states' fees. See home state or another state.

How do you form an LLC in Idaho, step by step?

1. Choose and check the name

   Search the state's business records and include "LLC", "L.L.C." or "Limited Liability Company" in the name.

2. Appoint a registered agent

   A person or company with a physical street address in Idaho. See what a registered agent is.

3. File the Certificate of Organization

   Online through SOSBiz for $100, or on paper for $120, which includes a $20 manual processing fee.

4. Get an EIN and sign an operating agreement

   The EIN is free from the IRS. See LLC operating agreement.

5. Register for state taxes

   Sales tax and payroll as needed. Then note the first yearly filing date.

What does Idaho require every year?

An annual report each year, with no fee when filed online, due by the last day of the month in which the LLC was formed, starting in the year after formation. It confirms the LLC's addresses, registered agent and governors. An LLC that does not file within the grace period after the due date can lose good standing and be administratively dissolved.

For deadlines, fees and late penalties in detail, see Idaho LLC yearly filings.

What does the first year cost?

With no annual fee, the main ongoing cost is a registered agent if you use a commercial one.

Should you file it yourself or use a formation service?

Filing yourself costs only the state fee, and the Idaho filing is short enough for most owners to complete. A formation service saves time, can act as your registered agent and may send reminders for yearly filings, but compare total yearly costs: low headline prices are often paired with paid add-ons such as expedited filing, operating agreements or EIN applications, which you can do yourself free. Whichever you choose, keep the approved filing, the EIN letter and your operating agreement together. See how much an LLC costs.

Can a non-resident form an LLC in Idaho?

Yes. Idaho has no residency or citizenship requirement for an LLC's members or managers. You need a registered agent with a Idaho street address and an EIN; a foreign owner without a Social Security number applies for the EIN on Form SS-4. A single-member LLC owned by a foreign person files Form 5472 with a pro forma Form 1120 every year, even with no US income. See can a non-resident own a US LLC and annual filings for foreign-owned LLCs.

What happens if you miss a required report?

The state usually charges a late fee and marks the LLC as not in good standing, which can block a certificate of good standing, a bank account or a loan. If the filing stays overdue, the state can administratively dissolve the LLC, ending its liability protection and its claim to the name. Reinstatement means filing every missing report and paying the fees owed, so put the dates in your calendar. See reinstating a dissolved LLC.

Which Idaho taxes apply to an LLC?

Idaho has a flat personal income tax on owners' shares of profit and a 6% state sales tax, with some local sales taxes in resort areas. Register with the Idaho State Tax Commission if you sell taxable goods or have employees.

If you sell online, see Idaho sales tax for online sellers.

Federally, a Idaho LLC is taxed like any other LLC. See how LLCs are taxed. For a side-by-side view of state costs, see how much an LLC costs.

This guide is general information. It is not tax or legal advice for your situation.