Are you thinking about starting an LLC in Idaho? In this article, we’ll discuss the top advantages of an LLC and how it will benefit your business in the short and long term. After that, I will walk you through the entire registration process if you decide it is the right business structure for you.
However as a quick note, if you are nervous about the filing process and would rather professionals handle it to make sure everything is filed properly, look into a service like IncFile (for $49) or LegalZoom (for $149). Both services use online questionnaires that take you less than 15 minutes to fill out and they take care of the rest.
If you’d like to handle the incorporation process yourself, keep reading for our step-by-step guide. Otherwise look into one of the incorporation services mentioned above. Do what you feel most comfortable with.
Liabilities are part of doing business and they can be tough to handle if you operate your business unincorporated. To make a long story short, you won’t have any protection against personal, financial and legal liabilities if you don’t incorporate.
Forming an Idaho LLC is essential to limit your liability as a business owner. Through incorporation, your business will be recognized by the state of Idaho as separate from you, it becomes an independent entity with its own rights and transactions. Therefore, if in case it encounters problems in the future like lawsuits and credit investigations, you will not be held accountable for anything.
In the same way that an Idaho LLC protects you, your business will also be treated fairly by Idaho state law. It will legally be allowed to air its side and the state will respect its right to due process.
One of the best things about an Idaho LLC is its flexibility, which enables it to adapt to any kind of situation. From your operating agreement, management structure, ownership, company rules, formalities and others, you have the sole freedom to create and manipulate these aspects of business based on your own choices.
An LLC is highly bendable, it doesn’t submit to the rules that the state imposes unlike a corporation. If unexpected circumstances come up, LLC’s are not subject to stiff laws, you can always change the course of how you run your business, change ownership status and a lot more.
Unlike corporations which are highly regulated, LLC’s are subject to lesser state regulations and laws. As long as your Idaho small business does not cause harm, fraud and danger to consumers and other companies and it has legally complied with all the requirements of the state, it can do whatever it pleases. As a business owner, this is a big advantage because you have enough leeway to manage your business based on your decisions and choices.
Compared to a corporation which needs to follow state laws when it comes to their management structure, an Idaho LLC can be run with or without a management structure in place. You are given the freedom to operate your business as you please as long as you don’t conduct illegal activities and violate the economic interest of the state.
Like the majority of states, the state of Idaho does not impose rules to LLC’s when it comes to their organizational structure. If you own your company with other co-founders, you can discuss among yourselves and decide if you want your Idaho small business to be handled by hired managers or appointed board members; you can even manage it on your own – the decision is all up to you!
Establishing an excellent reputation in the business industry is quite a challenge. Building your credibility takes years and a whole lot of hard work and consistency. The public is so hard to please and with thousands of businesses popping out every year, it’s even harder to establish yourself because of the competition.
Having an LLC after your business name will give you that added boost of credibility that your business needs. Knowing that you’re legally registered before the state will give a positive impression to customers and they’ll be able to trust you more.
IncFile is $100 more affordable than other LLC filing services & twice as fast
This is the first step to form your Idaho LLC. There’s no rule when it comes to naming your small business. The only thing that you need to remember when making a business name is to create something that will not confuse the public.
For instance, if there’s an existing business called “John’s Dog Walking Service” and you name your business as “John’z Dog Walking Service”, you will asked by your local county to change this because it can cause confusion.
When filing your business name, make sure to include the initials L.L.C. or LLC. Check for duplicates using the business name search tool provided by Idaho’s Secretary of State. If the name is available, you can apply for reservation for just $20. You can only reserve it for 120 days.
An Idaho Registered Agent is essential to run your business smoothly. They’ll take care of your record for you, sort your mails and documents, prioritize them according to urgency and notify you of anything that needs your attention. Failure to maintain a registered agent will cost you your Idaho small business. The state may even revoke your LLC status.
For a registered agent service, you can pay up to $160 every year, however, if you incorporate your LLC with IncFile, you’ll be able to avail of a free registered agent for one full year – estimated to be worth $150.
Filing the Articles of Incorporation is the most important step to complete your Idaho LLC. You are to submit this document before the Idaho Secretary of State’s Office. The Certificate of Organization Limited Liability Company must be downloaded and filled-out properly before submitting it.
Some of the basic requirements that you need to prepare include the LLC name and address, co-owner names and addresses and other relevant information. After submitting your Certificate of Organization, you need to wait for a week to 10 days for it to be returned to you. Prepare $100 for the filing fee.
To fully operate your Idaho LLC, you need to get an Employer Identification Number (EIN) from the Internal Revenue Service. Your EIN is a 9-series number similar to a Social Security Number in individuals. It is used by the federal and state government to monitor your business activities and state taxes.
The EIN can also be used for a variety of purposes. For one, it’s used to open a business bank account, hire employees and file for income tax returns. Every entrepreneur planning to start an Idaho startup must obtain the EIN; you can get it for free at the IRS website.
An Operating Agreement, although not mandatory is a highly useful document that will help you manage your Idaho small business smoothly.
An Operating Agreement outlines the financial and operational structure of your LLC. You can use Rocket Lawyer’s pre-made Operating Agreement if you need one for your business. Just customize this document as your own and you’ll be good to go!
Forming an LLC in Idaho doesn’t just stop after you’ve processed the major requirements, you also need to obtain the following additional requirements to be able to start operating your Idaho LLC smoothly.
A business plan may seem like an outdated tool, but it’s actually one powerful instrument that will help you bring your business to success. By having a business plan, you’ll be able to determine if your business idea is viable or not in the first place.
It is your roadmap, your blueprint which will guide you as you take baby steps to build your Idaho small business.
If you want to make a solid business plan of your own, here are some excellent resources that can help you!
Paying your state taxes is essential to continue operating in the Idaho. All entities operating within the state are required to do so.
As a small business owner, you need to understand Idaho tax regulations as well as your responsibility when complying with Idaho taxes.There are also advantages and benefits that you can take advantage of so you need to be aware of them.
Stay compliant, pay your state taxes promptly so you can run your business without any problems in the future. Failure to do so will result in penalties, sanctions, legal punishments and even the revocation of your license to operate.
Aside from paying state taxes every year, you also need to submit an annual report to your local county. This must be done on the first day of your anniversary month every year. Maintain your reputation and good standing by complying with this requirement.
After reading all the reasons to start an LLC in Idaho, what do you think? Is it right for you and your business? If yes, you have to start the process right away. It can take time so processing it as early as now will enable you to begin your operations as soon as possible.
For the procedures on how to form an LLC in Idaho, you can make this easy-to-follow guide as your point of reference. Good luck!
Please keep in mind that this guide is not meant for legal purposes and is not legal advice. If you want specific answers for forming an LLC in Idaho, consult with a professional.