How to Start an LLC in Idaho
An Idaho limited liability company (LLC) appears as a separate legal entity from the members of the business. Therefore, owners of an Idaho LLC have personal asset protection from the claims of business creditors. Idaho LLCs enjoy flexibility in terms of choosing a management structure and distributing company profits.
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Instructions
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Choose a business name for the LLC. Idaho law requires an Idaho LLC to have a distinguishable business name. The state of Idaho prevents two registered businesses from sharing the same company name. A name availability search may be performed by contacting the Idaho Secretary of State's office, or the Idaho Secretary of State website.
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File a certificate of organization with the Idaho Secretary of State. A certificate of organization for an Idaho LLC indicates the name and address of the business. The state of Idaho requires the certificate of organization to also include the name and address of a registered agent. The agent must be a business, or a person 18 or older. An Idaho resident agent receives service of process and other legal documents on behalf of an Idaho LLC.
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Apply for a federal employer identification number (FEIN). The IRS issues a federal EIN on the IRS website, via phone, fax or mail. A federal EIN may be issued to an Idaho LLC for immediate use after completing Form SS-4 online, or over the phone with an IRS representative. Faxed inquiries may require four business days before the IRS issues a federal EIN. If you mail form SS-4, it may take up to four weeks before receiving a federal EIN.
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Apply for permits and necessary licenses. Idaho law requires all LLCs to obtain a general business license. Depending on the nature of the firm, other permits may be required to operate the LLC. For example, an Idaho LLC involved in retail sales must obtain a sales and use-tax certificate, a seller's permit and possibly a zoning permit.
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Tips & Warnings
An Idaho LLC is called a pass-through entity, which allows a company member to pass her shares of company profits and losses to her individual tax return.
Create a written operating agreement. A written operating agreement isn´t a must, but creating it proves a business operates as an LLC, not a partnership or sole proprietorship.
Check with the city clerk's office in the Idaho county where the LLC operates to determine what permits and licenses are necessary to run the business.
