Perhaps you are hoping to form an Idaho LLC. People assume how to start an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Idaho.
On this page, you’ll learn about the following:
Idaho LLC Cost of Filing
Here are the costs involved in forming an LLC in Idaho.
Cost of Filing Formation Certificates
The Idaho Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Idaho Secretary of State.
Idaho Domestic LLC
- Online Filing costs $100
- Annual Report filing costs $0 (online filing)
- Name Reservation Fee costs $20
- By mail: Fill out the Application Form PDF, and submit it to the following address: Office of the Secretary of State, 450 N 4th Street, P.O. Box 83720, Boise, ID 83720-0080, costs $120
Idaho Foreign LLC
- Online Filing costs $100
- Annual Report Filing costs $0 (online filing)
- Name Reservation Fee costs $60
- By mail: Fill out the Application Form PDF, and submit it to the following address: Office of the Secretary of State, 450 N 4th Street, P.O. Box 83720, Boise, ID 83720-0080, costs $120
Visit the Official Idaho Secretary of State website to learn more about the Business Entity Filings. You can also access the File Paper Forms section on the Secretary of State website to access the forms you wish to submit via mail.
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
Idaho LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Idaho, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Idaho Department of Revenue for regulatory boards or agencies requiring licensing.
Idaho LLC Taxes to be Paid
Though the annual report filing in the State of Idaho is free of cost, the LLCs in the State are subject to different State Tax filing obligations. Though the taxes vary from county to county.
Idaho Sales Tax Rate
The standard rate of sales tax applicable is at the rate of 6.00% and the maximum local or county rate that applies additionally is 3.00%.
Idaho State Income Tax
This is the State Tax levied on any income you pay to yourself. The tax rate varies between 1.125% to 6.925%, depending on the total amount of taxable income.
Federal Self Employment Tax
Any profit that an Idaho LLC Business members draw out from the business is liable to pay self-employment tax. The standard tax rate is 15.3%.
Employer Payroll Tax Withholding
If you hire employees in Idaho, you must withhold payroll tax from their salaries. The standard rate of withholding is 7.65% of the taxable salary of the employees.
Cost Comparison Among States
Every state has different costs of filing for an LLC to their respective State Authorities. If you want to get a better understanding of the costs of opening an LLC in a different state in comparison to Idaho, read the table below:
State | Filing Fee | Annual Fee/Biennial Fee | Sales Tax |
Idaho LLC | $100 (online)$120 (mail) | $0 | 6% + local county rates |
Washington LLC | $200 | $60 (annual) | 6.5% + local county rates |
Oregon LLC | $100 | $100 (annual) | 0% |
Nevada LLC | $425 | $350 (annual) | 4.6% + local county rates |
Montana LLC | $70 | $20 (annual) | 0% |
The State of Idaho has seen significant economic growth in recent years. The major contributing sectors are science and technology such as computers, recreational, and innovation. Other sectors include manufacturing, energy, and food production.
Other Costs
- Idaho Name Reservation: $20 for online fillings or $40 by mail
- Doing Business As (DBA): $25 for online filling or if filing by mail
- Certified Document Copies: $10 + $0.25 per page.
- Certified of Good Standing: $10
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Idaho LLC: $235
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
How Much Does It Cost to Maintain an LLC in Idaho
To maintain an LLC in Idaho you do not need to pay an annual fee. However, state income tax at 1.125% to 6.925%, sales tax and federal taxes are levied.
The first cost that owners must consider is the filing fee required to initially establish an LLC in Idaho. This fee is a one-time cost that is necessary for registering the business with the state. It is important for owners to factor this expense into their budgeting as it is an upfront cost that cannot be avoided.
In addition to the initial filing fee, LLC owners in Idaho are required to pay an annual report fee. Filing an annual report is mandatory for all LLCs in the state and failure to do so can result in penalties or even the dissolution of the business. The annual report fee is another cost that must be taken into account when calculating the overall cost of maintaining an LLC in Idaho.
Another important consideration for LLC owners in Idaho is the cost of obtaining any necessary licenses and permits. Depending on the nature of the business, owners may need to obtain specific licenses or permits to operate legally in the state. These licenses and permits can vary in cost and complexity, so it is crucial for owners to research and budget for these expenses accordingly.
LLC owners should also be prepared to cover the cost of insurance. While insurance requirements can vary depending on the industry, having appropriate coverage is essential for protecting the business and its assets. This cost can vary depending on the level of coverage desired, so owners should carefully consider their insurance needs and budget for this expense accordingly.
Finally, LLC owners in Idaho should be aware of any potential tax obligations associated with their business entity. While LLCs offer certain tax advantages, owners may still be required to pay state and federal taxes on their business income. It is important for owners to understand their tax obligations and budget for these expenses to ensure compliance with tax laws.
Overall, the cost of maintaining an LLC in Idaho can vary depending on a variety of factors. By carefully considering and budgeting for expenses such as filing fees, annual reporting fees, insurance costs, and tax obligations, business owners can ensure the continued success and longevity of their LLC. Being aware of these costs and planning accordingly is essential for the financial health of the business entity.
In Conclusion
The cost of Idaho is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.