Each year thousands of LLCs are filed in Idaho. If you’re looking to join them, then learn how to form an LLC in Idaho and download an LLC operating agreement today.
Is an LLC Operating Agreement Required in Idaho?
AN LLC operating agreement isn’t required in Idaho. But it is still recommended that all LLCs have an operating agreement, even if you are running a single-member LLC.
Having an operating agreement helps to ensure that the business is treated as an LLC should the entity’s LLC status be questioned and can help protect your business and allows you to conduct your company the way you want.
Idaho LLC Operating Agreement Laws
Idaho LLC operating agreement laws are outlined in § 30-25-105 of the Idaho Code. You should read through the laws to gain an understanding of what is expected before filling out your LLC operating agreement. We’ve outlined some of the state-specific laws you need to be aware of when forming your LLC in our step-by-step guide below.
How Much Does It Cost to Form an LLC in Idaho?
Forming an LLC in Idaho will cost the same regardless of whether you file one domestically or as a foreign entity. The cost is $100 to form it online and $120 to form it in person.
How to Form an LLC in Idaho
You’ll have to go through a certain process to form an LLC in Idaho. You’ll also have to follow some state laws regarding the formation of an LLC, we’ve covered the main sections below. Here are the steps to create one:
Step 1 – Name Your Idaho LLC
The first step of your LLC is to decide on the name. Do a name search on the State of Idaho website to make sure that the name is still available. Also, check online to see if the web domain is available. too.
Make sure that you follow Idaho’s rules for naming your LLC. Idaho LLCs must contain the phrase “Limited Liability Company,” “Limited Company,” or the abbreviations “L.L.C.,” “L.C., or “LLC.”
Your name cannot include words that could be confused with a government department, like the Treasury or State Department. Restricted words like bank and attorney may require additional paperwork and a licensed individual to be part of the LLC.
Step 2 – Choose a Registered Agent
Next, you must nominate an Idaho Registered Agent for your Idaho LLC. A registered agent may be someone who resides in Idaho, or a domestic or foreign business entity registered with the Idaho Secretary of State.
The registered agent must have a physical street address in Idaho. The registered agent will be the point of contact with the state. They will be receiving legal documents on behalf of the business.
Step 3 – File Idaho LLC Certificate of Organization
To officially register your Idaho LLC, you will then need to file a certificate of organization with the Secretary of State. You can do this online at the Idaho Secretary of State online business services website. You can also fill out the form on paper and mail it or deliver it in person.
If you file the certificate of organization online, it will cost you $100. If you do it on paper, the cost will be $120.
You can decide if you’d like to create a single-member LLC or a multimember LLC. Both are accepted in Idaho.
Step 4 – Create an Idaho LLC Operating Agreement
The time has come for you to create your Idaho LLC operating agreement. Though it’s not required to have an operating agreement, it’s a wise idea to have one.
An operating agreement will be your LLC’s legal document that outlines its ownership and operating procedures.
They’re important for multimember LLCs because they will specify each person’s responsibilities and reduce the risk of conflict. They are also helpful because they can protect the company’s owners, which is beneficial even for a solo LLC owner.
Remember that you don’t file your operating agreement with the state. It is an internal document that you should keep on file. It’s always a wise idea to have this document easily accessible.
Step 5 – Get an EIN for Your LLC
Your LLC will also need an Employer Identification Number (EIN). An EIN is a nine-digit number assigned by the IRS. This helps them keep track of businesses for tax reasons – think of it as a Social Security number for your business.
An EIN may also be referred to as a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN).
You will need an EIN to open a business bank account, file your federal and state taxes, and hire employees.
You can get an EIN for free from the IRS. Visit the IRS website to apply online.
Step 6 – Keep Your Company Compliant
Once your LLC is up and running, you need to keep it compliant with federal and state laws so it can keep running smoothly. For instance, you may need building permits, health permits, or service permits.
You can use the State of Idaho’s website or the U.S. Small Business Administration (SBA) guide to learn more about the regulations that you’ll have to follow.
You may also be responsible for multiple types of tax, such as Idaho sales tax and employer taxes. You’ll also need to report your income to the IRS each year.
LLC Operating Agreement Template
Forming an LLC in Idaho can be done in just a few steps. Remember that while creating an LLC template that outlines your operating responsibilities isn’t required in Idaho, it will be a huge benefit to your business.
Use the below Idaho LLC operating agreement template so that you can create an agreement that works for your LLC in minutes:
LLC Operating Agreeement