Idaho LLC

Idaho LLC

Form a Idaho LLC

At LawInc we are Idaho LLC formation experts who can help you form a Idaho LLC, the right way. We file the Idaho LLC Articles of Organization with the Idaho Secretary of State and prepare a customized operating agreement. We can also obtain the Idaho LLC’s EIN, in an quickly as 24 hours. Let LawInc guide you through the process of forming your Idaho LLC.

Let LawInc walk you through the Idaho Limited Liability Company formation process. Our clear, concise and easy to use website, helps keep things simple.

Idaho LLC Name

The first step in forming a Idaho Limited Liability Company (LLC) is selecting the business name. Idaho LLC names:

  • Must include the words “Limited Liability Company” or “Limited Company” (it being permitted to abbreviate the word “limited” as “ltd.” And the word “company” as “co.”) or the abbreviation “LLC” or “L.L.C.” or “LC” or “L.C.”
  • The name of a Idaho LLC must be distinguishable on the records of the Idaho Sec. of State.

An available Idaho LLC name may be reserved for a 4-month period. permits you to choose up to three names and will conduct a name search for your Idaho LLC, prior to filing.

Idaho LLC Formation

Idaho LLC Filing Procedure: When forming an Idaho LLC, the Idaho Articles of Organization must be filed with the Idaho Secretary of State. The Idaho Articles of Organization must state:

  • The Idaho LLC name.
  • Name and address of each Idaho LLC organizer.
  • Street address of Idaho registered office.
  • Street address of principle place of business.

Idaho LLC Organizers: An Idaho limited liability company can be formed by one (1) or more organizers. An organizer may be an individual, business entity, business trust, estate, trust, association, joint venture, government, governmental subdivision or agency, or any other legal or commercial entity.

Idaho LLC Members: Idaho LLCs require 1 or more members. There is no residence or age requirement. Idaho LLC members are not required to be listed in the Articles of Organization.

Idaho LLC Duration: The period of duration of a limited liability company shall be perpetual unless the Idaho Articles of Organization place a limitation on the company’s existence or until dissolution or termination.

Idaho Registered Agent: An Idaho LLC must maintain a registered agent and office to receive service of process in Idaho. The Idaho registered agent should be available, at an Idaho physical address, during normal business hours to accept important legal and tax documents on behalf of the Idaho LLC. The registered agent can either be (1) a domestic entity or a foreign entity that is registered to do business in Idaho or (2) an individual resident of the state. A Idaho LLC may not act as its own agent.

Idaho LLC Operating Agreement: After filing, it is highly advised that an operating agreement is drafted which dictates the LLC internal affairs and management. There is no set criteria, but an Idaho LLC operating agreement should reference how the Idaho LLC is managed, allocation of profits and losses and member capital contributions. The Idaho LLC operating agreement does not need to be filed.

Idaho LLC Post-Filing Requirements

Idaho Annual Report: All Idaho LLCs must file an annual report with the Idaho Secretary of State before or on the LLC organizational anniversary which is signed by a member, manager or agent. The Idaho LLC Annual Report.

  • LLC name.
  • LLC street address and registered agent.
  • LLC principal office mailing address.
  • Names and address of managers, if manager-managed, and names and addresses of members, if member-managed.

The Idaho Secretary of State annual reports are due on the last day of the month, on the anniversary month you initially filed your company in. This means if you filed your company Dec. 1st, 2007, that your annual report will be due Dec. 30th, 2008 and on Dec. 30th every year thereafter.

Idaho LLC Taxes

Idaho State Income Tax: The LLC tax rate for Idaho is variable, depending on Idaho taxable net income.

Federal Income Tax: An advantage of the LLC is its tax flexibility. LLC members are allowed to select how the entity will be taxed. An LLC may be classified for federal income tax purposes as either a:

  • Sole proprietorship
  • Partnership, or
  • Corporation.

Single member LLCs are treated the same as sole proprietorships. Profits are reported on Schedule C as part of your individual 1040 tax return. Self-employment taxes on Idaho LLC net income must be paid just as you would with any self-employment business.

Most Idaho multi-member LLCs elect to be treated as partnerships by the IRS and file IRS Form 1065. On this form, Idaho LLC profits are reported and allocated to each of the owners according to the Idaho LLC’s operating agreement. Each owner is given a Schedule K-1, which shows each owner’s share of LLC income or loss. The owner then reports and pays taxes on this income on the owner’s annual 1040 income tax return. It is important to note that as with sole proprietorships, all Idaho LLC profits are taxed to the owners, even if they are not actually distributed by the LLC. This situation can arise when the LLC needs to use its profits to pay ongoing expenses.

If pass-through taxation is not desired, an LLC may elect to be taxed as a corporation by completing IRS Form 8832. If this election is made, the LLC is taxed as a C corporation by the federal government. Because the corporate income tax rates for the first $75,000 of corporate taxable income are lower than the individual income tax rates that apply to the taxable income of non-corporate taxpayers, it is possible a net income tax savings can result from this tax election. Additionally, an LLC can be taxed like an S corporation by filing IRS Form 2553.

Federal Tax Identification Number/Employer Identification Number (EIN): The Federal Tax Identification Number, also known as the Employer Identification Number (EIN) is a number that is assigned to a business by the Internal Revenue Service. An EIN is like a Social Security Number for a business. It is a requisite for certain business functions such as opening bank accounts or hiring employees. An EIN is typically required if the Idaho LLC has more than one owner, or any employees.

Idaho LLC Dissolution

In order to dissolve or cancel an Idaho LLC, the members or managers must file a Statement of Dissolution Limited Liability Company form with the Idaho Secretary of State. A Department of Revenue clearance is not needed to dissolve an Idaho LLC.

Acts Triggering Idaho LLC Dissolution: A Idaho LLC can be dissolved upon the happening of one of the following:

  • At a time specified in the Articles of Organization or operating agreement;
  • Upon occurrence of events specified in the Articles of Organization or operating agreement;
  • Consent by the specific number or percentage of members indicated in the operating agreement; or
  • At any time there are no members;
  • Judicial decree to dissolve by a Court.