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Last Updated on November 29, 2023 by Dr. Gabriel O’Neill, Esq.
Welcome to the world of starting a business in Idaho! If you’re thinking about creating a Limited Liability Company (LLC), you’re on the right track. But before you jump in, it’s important to know about the costs. These are the fees you have to pay when you apply and the money you need to keep your LLC going.
This guide will explain all the costs you might have when you’re forming an LLC in Idaho. And if you want some extra help, LLC services like ZenBusiness can assist you with the paperwork and make sure everything is done right. With the right information and help, you’ll be all set to handle the expenses and details of forming your LLC in Idaho.
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What Is the Cost of Forming an LLC in Idaho?
The primary cost to form an LLC in Idaho is the $100 fee for submitting your LLC’s Certificate of Organization online to the Idaho Secretary of State.
Here’s the LLC Cost Guide for all US States:
Idaho Foreign LLC Formation Costs
If you presently own an LLC that’s registered in a different state and wish to extend your business to Idaho, you must register your LLC as a foreign entity in Idaho.
The fee for registering a foreign LLC in Idaho is $100. To complete the registration, you need to submit a Foreign Registration Statement for a Limited Liability Company.
Annual Cost for LLCs in Idaho
Upon establishing your Limited Liability Company (LLC), your business will retain responsibility for specific compliance expenses in the state of Idaho. These ongoing financial obligations for an Idaho LLC encompass the following key aspects:
- Firstly, filing an Idaho LLC Annual Report is necessary to maintain your LLC’s current information and compliance with state regulations, ensuring uninterrupted operations. Unlike certain states that require a fee, Idaho’s Annual Report is solely an information update submitted to the Secretary of State without any associated cost.
- Secondly, an essential requirement involves designating a registered agent for your LLC in Idaho. This agent is tasked with receiving legal documents on behalf of your business. The costs linked to your chosen registered agent vary, contingent upon whether you opt for a professional service or decide to fulfill this role personally.
How Much Does It Cost to Start an LLC in Idaho With the Best LLC Service?
ZenBusiness LLC Formation Cost
In the process of establishing an LLC in Idaho, the initial cost begins at $100, with the potential for incremental increases. As for processing times, the standard duration stands at 2 – 3 weeks. Alternatively, there’s an option to accelerate processing, reducing it to 4 – 6 days for an additional fee of $50. For more immediate requirements, a rush processing choice of 1 – 2 days is available at a cost of $100.
ZenBusiness provides a range of three pricing plans catering to business formation services: Starter, Pro, and Premium.
- Starter plan: This presents an ideal choice for fundamental business formation requirements and is priced at $0, exclusive of state fees.
- Pro plan: The supplementary features are incorporated, including expedited filing and registered agent services, available at a cost of $199 in addition to state fees.
- Premium plan: This stands as the most all-inclusive option, encompassing all Pro plan attributes along with unlimited Worry-Free Compliance, a service designed to assist businesses in adhering to both state and federal regulations. The Premium plan is available for $349 alongside state fees.
It’s noteworthy that ZenBusiness extends the offer of a complimentary year of Worry-Free Compliance with the acquisition of these plans.
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Additional Costs When Starting an LLC in Idaho
Idaho LLC Name Costs
The cost for naming your business in Idaho is $0. When you choose a name for your Limited Liability Company, you won’t incur any charges. The approval of your Idaho LLC Name is included without any additional fees, and it happens when your Certificate of Organization filing gets approved by the state.
You might have found information online stating that LLC Name Reservations are mandatory. However, this isn’t accurate for most states. In the majority of states, there’s no requirement to reserve a name in order to establish an LLC.
If you do want to reserve a name for your LLC, you have the option to do so. You can reserve your desired name for a period of up to four months before you actually form the LLC. This can be done by submitting an Application for Reservation of Legal Entity Name and paying a filing fee of $20.
For a Foreign LLC that wishes to operate in Idaho but finds that its current name isn’t available, there’s a solution. The Foreign LLC can apply for registration of a new name by submitting an Application for Registration of Foreign Name and paying a filing fee of $60.
Idaho Registered Agent Costs
Idaho mandates that you appoint a registered agent for your LLC, with the choice of either a $0 fee if you serve as your own agent or a $125 yearly fee. A registered agent in Idaho is an individual or entity responsible for receiving legal documentation and official state notifications on behalf of your LLC. The registered agent needs to possess a physical address within the state and be accessible during regular business hours.
Should you opt to serve as your own registered agent or designate someone you know, there won’t be any extra charges incurred. Alternatively, you have the flexibility to enlist the services of a registered agent company, which typically comes with a cost ranging from $100 to $300 per annum. These service providers not only assume the registered agent role but also offer additional valuable business services while safeguarding your privacy.
Engaging a registered agent service becomes particularly advantageous when:
- You lack an address within Idaho, as the state law mandates registered agents to have a physical presence in the state.
- You aim to shield your address from public disclosure. Depending on the chosen company, it might be possible to utilize their address to maintain the confidentiality of your own.
Idaho Operating Agreement Costs
An Idaho LLC Operating Agreement constitutes a written agreement among the members of the LLC. Within these agreements, comprehensive particulars regarding LLC ownership, management protocols, and profit allocation are outlined. Both Single-Member LLCs and Multi-Member LLCs are advised to formulate an Operating Agreement, maintain it alongside their business documents, and provide each member with a copy.
While numerous platforms demand between $50 to $200 for LLC Operating Agreements, there’s no charge for this service.
Idaho EIN Cost
The LLC EIN Number Fee, which stands at $0, pertains to the Employer Identification Number (EIN), alternatively known as the Federal Employer Identification Number (FEIN). This unique identifier is essential for tasks such as income tax filing, establishing an LLC bank account, and potential employee recruitment.
Despite numerous platforms charging for EIN acquisition for your LLC, it’s possible to obtain it without cost. The Internal Revenue Service (IRS) offers a straightforward online filing process that takes just minutes to complete.
Idaho LLC Taxes
The costs associated with Idaho LLC taxes vary significantly due to the various types that owners are required to pay each year. A subset of these taxes paid by LLC owners encompasses:
Federal Income Taxes
When it comes to your LLC and federal income taxes, the IRS offers different treatment options based on your LLC’s structure. Single-Member LLCs are regarded as Disregarded Entities, meaning the LLC doesn’t need to file its own federal income tax return.
Instead, the owner files the return and pays taxes. The tax treatment depends on LLC ownership: individual ownership leads to Sole Proprietorship tax, while ownership by a company results in taxation as a branch of the parent company.
Multi-Member LLC Taxes
For LLCs with multiple owners, the IRS treats them as Partnerships. The LLC files a 1065 Partnership Return and provides each owner a Schedule K-1 showing their share of profits. This income “flows through” to owners, who pay taxes on their personal returns (Form 1040).
Husband and Wife LLC Taxes
In community property states like Idaho, a husband and wife LLC can choose to be taxed as a Single-Member LLC (Qualified Joint Venture) instead of a Multi-Member LLC. This can be decided during the EIN application or by sending a request to the IRS. Otherwise, default taxation is as a Partnership.
Electing Corporate Taxation
An LLC can opt for corporate taxation instead of default statuses. This requires choosing either S-Corporation or C-Corporation status. The former can save on self-employment taxes, while the latter can benefit larger employers with healthcare fringe benefits. Seeking advice from an accountant before electing this status is recommended.
Idaho State Income Tax
For Single-Member LLCs in Idaho, the LLC doesn’t file a state return; the owner includes profits/losses in their personal state return. Multi-member LLCs might need to file a state-level Partnership return, with owners reporting profits/losses on personal returns. Specific business taxes apply to certain industries.
Local Income Tax
Both you and your LLC might need to pay local income taxes to your municipality. Consulting an accountant is wise for accurate preparation and filing.
Idaho Sales Tax
Selling products in Idaho might necessitate collecting sales tax via a Seller’s Permit, obtainable from the Idaho State Tax Commission (STC). This permit enables tax collection on retail sales, often termed as a resale, wholesale, or sales tax permit/license.
Idaho LLC Payroll Taxes
If your Idaho LLC has employees, payroll taxes are essential. These include federal and state income tax withholding, Social Security tax, Medicare tax, unemployment taxes, and deductions. While you can handle this yourself, seeking professional help reduces errors and penalties.
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Idaho LLC Cost FAQs
How Much Does It Cost to Open an LLC in Idaho?
It costs $100 to form an Idaho LLC. This fee covers the filing of the LLC Certificate of Organization, the pivotal paperwork that establishes your business within the state.
Certain Idaho LLCs might necessitate obtaining a business license. The necessity is contingent on your business sector and geographical location. The expenses tied to local business permits fluctuate accordingly.
How Much Does an LLC in Idaho Cost Per Year?
When utilizing the services of a registered agent, an annual subscription fee will be due each year, typically amounting to around $125. Idaho LLCs are obligated to file an Annual Report annually, but it’s important to note that there’s no cost associated with submitting this information report; the filing fee is set at $0.
Depending on the industry and location of your LLC, you may need to obtain a business license in Idaho. To determine if there are any annual renewal fees for the business permit, it’s advisable to contact your local municipality for clarification.
Should I Hire an LLC Formation Service?
Utilizing a professional service company to establish your Idaho LLC isn’t mandatory; you retain the option to undertake the LLC formation process independently if you prefer.
For enhanced efficiency and precise filing, ZenBusiness is recommended. They offer outstanding customer service and include free registered agent services for the first year. Alongside this, they provide supplementary benefits like an Operating Agreement and aid with Annual Report submission, creating a comprehensive support package.
Cost to Form an LLC in Idaho – Conclusion
In conclusion, embarking on the journey of establishing an LLC in Idaho demands a clear understanding of the associated costs. While Idaho provides an environment conducive to business with its straightforward regulations, it’s crucial to account for expenses like filing fees, registered agent fees, and consultancy charges. The option to enlist the assistance of professional LLC service providers like ZenBusiness can streamline the process.
Entrepreneurs should conduct a balanced assessment of these expenditures in relation to Idaho’s advantageous business landscape, legal structure, and overall reputation, ensuring that their choice aligns with their objectives and financial capacities.
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About the author
Dr. Gabriel O'Neill, Esq., a distinguished legal scholar with a business law degree and a Doctor of Juridical Science, is a leading expert in business registration and diverse business departments. Renowned for his academic excellence and practical insights, Dr. O'Neill guides businesses through legal complexities, offering invaluable expertise in compliance, corporate governance, and registration processes.
As an accomplished author, his forthcoming book is anticipated to be a comprehensive guide for navigating the dynamic intersection of law and business, providing clarity and practical wisdom for entrepreneurs and legal professionals alike. With a commitment to legal excellence, Dr. Gabriel O'Neill, Esq., is a trusted authority dedicated to empowering businesses within the ever-evolving legal landscape.