How to Start an LLC in Idaho for $0 (ID LLC 2023)


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How to Start an LLC in Idaho: If you’re looking to start an Idaho LLC for $0, you’ve come to the right page. Setting up an LLC is easy and cost-effective. To form an LLC, you must follow a few steps that include naming your LLC, hiring a registered agent, filing your formation documents, doing the operating agreement, and finally obtaining the EIN. You can easily set up your LLC for free in Idaho. However, you must pay the mandatory state filing fee. These fees and charges can be tax deductible, making the LLC formation cost $0.

On this page, You’ll find all the steps that must be taken to ensure that your Idaho LLC has been correctly formed. We recommend you read the whole article very carefully, word by word, don’t miss anything 🙂

Idaho LLC

How to Start an LLC in Idaho

An LLC (aka Limited Liability Company) is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection. For an LLC, members’ personal assets are not affected by business debts. However, in some cases, if the LLC is sued for business debts, courts might pierce the corporate veil and use the owner’s personal assets to meet their corporate liabilities.

If you wish to start an LLC, you must file your Certificate of Organization with the State and pay a filing fee of $120. While it’s the most important step, it’s not the only one. There are 4 other crucial steps to follow to get your LLC formed in Idaho. Below mentioned all 5 steps that explain everything you need to do to start an Idaho LLC in 2023. Let’s get started! You can always hire a professional LLC formation service in Idaho to set up your LLC instead of doing it alone; a Pro service will ensure everything is done properly.

Step 1: Decide a Name for Your Idaho LLC

idaho name your llc

The first step while forming a limited liability company in Idaho is to give a proper name to your LLC. Before you name your business, you must know that the name should be easy to remember, available in the state, and follows all the LLC naming guidelines.

LLC Naming Guidelines in Idaho

There are a few specific requirements all the LLCs in Idaho have to follow while naming their Company. Some of the most important requirements are as follows:

  • Your business name should be available and no other existing business in Idaho can have the same name. ZenBusiness offers unlimited business name searches at $0.
  • “Limited Liability Company”, “LLC”, and “L.L.C.” – any one of these has to be used as a suffix in your business name.
  • You cannot use any name for your business that is confusing or misleading. Terms such as “Treasury”, “State Department”, “FBI”, “CIA”, etc. shouldn’t be included.
  • Terms like “Bank“, “University“, “Attorney“, “Doctor“, etc can be added only after the additional requirements by Idaho State Government are fulfilled.
  • (Optional) It’s better to name your business something for which your desired domain is available.
Important Links –Submit Offline Form to –
Idaho Business Entity Search – Online Name Search
Name Reservation Form – PDF
Idaho LLC Name Search Guide – Instructions
Office of the Secretary of State
450 N 4th Street
P.O. Box 83720
Boise, ID 83720-0080

Reserve Business Name for Future

If you do not wish to file your LLC right now but want to hold the name you have decided, then you can reserve your LLC name for 4 months. To keep the name, you must file a name reservation application and pay $20 ( $20 additional for filing by mail) to reserve your name with the Idaho Secretary of State.

Doing Business As (DBA) or Trade Name

Once you have a legal name for your LLC, you can register it. However, it is not mandatory. You can, instead, use DBA, Fictitious Name, or Trade Name. In that case, you must register your name with the Idaho Secretary of State by submitting a Certificate of Assumed Business Name form in Idaho along with the filing fee of $25 (online) or $20 additional (for mail or in-person processing).

Recommended: You can do name search, business domain, website, emails, and a lot more in one place by hiring a professional service. We recommend using –

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Apart from LLC formation, ZenBusiness offers customized website templates and business emails at a very reasonable price. If you plan to get a website, then it is wise to have a “.com” domain for your business, but these days you can also use other TLDs like “.io”, “.company”, “.xyz,” etc. Here you can get everything you need for your business in one dashboard.

Do I have to include LLC in my company email/domain?

It is not legally mandatory to use the word LLC in your domain name or email. If you want, you can use it. However, it is recommended not to use LLC in the domain name. A domain name should be short and easy to remember.

Step 2: Assign a Registered Agent in Idaho

Idaho registered agent

The second step to forming an LLC in Idaho is to appoint a Registered Agent. A registered agent is a person or business entity working on your LLC’s behalf. This person or business will receive important tax forms, legal documents, all notices of lawsuits, and other official government correspondence in Idaho. Hence, hiring a competent Idaho Registered Agent for your LLC is necessary. 

Make sure your registered agent is a resident of Idaho or has a physical street address. This address will be used as the principal address of your LLC to receive any legal documents. Most LLC formation companies also provide registered agent services. Below are two great LLC formation services; even if you buy their cheapest plan (normally $0/year), you also get registered agent service and other services at a very reasonable price.

LLC Service

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  • 100% accuracy guarantee

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$39 + State Fees

  • Free operating agreement

  • DIY packages

  • Good customer support

These two are our top recommendations for registered agent service, as they are competent and authorized to conduct business in Idaho. Some LLC formation services also offer standalone Idaho registered agent services. You can purchase only Registered Agent services without purchasing any other LLC formation services. This standalone service might become handy if you are doing it yourself and don’t want to disclose your home address or you don’t want to pierce the corporate veil.

Who Can Be a Registered Agent?

A person above 18 years of age and has a physical address in the state of Idaho can be a Registered Agent. A Registered Agent can be an independent person or can be a business entity. One is responsible for handling all the legal documents on the LLCs behalf.

Can I Be My Own Registered Agent?

Yes, you can be your own registered agent if you are a resident of the state of Idaho and you are above 18 years of age. To become a registered agent, you must have the authority to conduct any type of business in Idaho.

Why Shouldn’t I be My Own Registered Agent?

There are a few reasons why you shouldn’t be your own registered agent. The address of the registered agent is used to communicate with the SOS or for any legal activities. If you are your own registered agent, you might have to upload your personal address to the public forum. Besides, the registered agent must be at the address during business hours. It won’t be easy for you as you also have to take care of other things in your LLC. Hence, it is wiser to appoint a separate entity as your registered agent.

What is Piercing the Corporate Veil in LLC?

If an LLC is sued in Idaho, in some cases, courts might decide to lift the corporate veil, which means the owners of the LLC will be personally liable for their business debts. They might have to forgo their personal assets to repay their business debts. This is called piercing the corporate veil, where personal and business assets are not separated anymore. Your personal assets can be protected if you have enough capital and all your LLC documents are properly filed.

Registered Agent Consent Application

In Idaho, there is no separate Consent Letter to be produced to the Secretary of State. At the time of change of Registered Agent (or the name or address), the new Registered Agent has to sign the consent letter. It comes with the Application form to Change the Registered Agent. The filing fee of $20 should be paid for it. For more information on the same, read our guide on Idaho Registered Agent.

Step 3: File Certificate of Organization in Idaho

Idaho certificate of formation

The third and most important step in forming an LLC is to file the Certificate of Organization. This Idaho Certificate of Organization is a legal document needed to officially register your business with the Secretary of State. It costs $120 (by mail and $100 online) to file your formation certificate in Idaho. (Read more on LLC cost in Idaho).

The Certificate of Organization includes details like the name of the LLC, the registered agent’s name, address, employees’ details, and the company’s structure (member-managed or manager-managed). Before hiring employees in Idaho LLC, one should know about the rules and regulations thoroughly. Also if you are expanding your existing business (an LLC) in other states to Idaho, you must register as an Idaho Foreign LLC.

How to File Online

Go to the Secretary of State Online Service. You will get the online service page. Select the ‘File Certificate of Organization” option to file your LLC online. If you’re already subscribed, then you can log in to the account and start filing. Click on the “Online Filing” button below. If you’re not a subscriber then create your new account by clicking on the Sign-up button. Read more about the Idaho Certificate of Organization for online registration.

How to File by Mail

If you prefer filing real-life forms for your LLC registration, then you can download Domestic LLC Formation Form. Read the form thoroughly, fill it out, and mail it to the following address,

Mailing Address:

Office of the Secretary of State
450 N 4th Street
P.O. Box 83720
Boise, ID 83720-0080

Processing Time: Normally, it takes around 7-10 business days (approx) to get your LLC formed in Idaho. The processing time for online filing might be a little faster than offline filing. With an additional cost, you can get expedited filing as well. However, the document processing time can be changed due to various factors.

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Every LLC owner has to pay the filing fees to register their business in Idaho. This fee is mandatory but also tax deductible. If you’re doing it yourself (filing on your own), it will not cost you any additional service fee. However, it is not feasible to do that as the DIY process might be delayed, complicated, and messy, especially if you’re a novice entrepreneur. Hence, it is recommended to get professional guidance to get your LLC formed in Idaho.

Step 4: Create Your LLC Operating Agreement in Idaho

idaho operating agreement

Moving on to the fourth step, filing your operating agreement. An operating agreement is an internal document that legally outlines the proprietorship and operating procedures of your LLC. This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.

When it comes to filing an Idaho LLC Operating Agreement, the state does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all the details of your business operation that helps in taking future business decisions, especially if you decide to dissolve Idaho LLC later. Hence, having an operating agreement may not be necessary but it is surely ideal.

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The operating agreement draft can be created for free if you don’t hire a professional. However, there is an advantage to appointing a proficient person/service. You will get a businesslike quality operating agreement at a very cheap fee, which will help you in the future. Hiring a professional service means you can sleep well at night 🙂

Step 5: Filing an LLC EIN in Idaho

Idaho file EIN for llc

The Employer Identification Number (aka EIN) is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify the type of business for tax purposes and taxes in general. The EIN is necessary for any active business or any form of business. 

EIN is needed when the LLC hires employees. Hiring employees in Idaho LLC requires following specific rules and regulations. On the other side, EIN for Idaho foreign LLC should be obtained if your LLC is based in other states.

To obtain EIN (aka FEIN), one must fill up a form (Online or by mail) and submit it to the IRS. Enter details of your LLC, and finally, complete the form and send it to the address given. You can also get an EIN Assistant who can help you with the process.

Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999

Fax: (855) 641-6935 | Fee: Free

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Note: You don’t need a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.


Congratulation, you are now done with all the necessary steps to form your Limited Liability Company in Idaho. If you do it yourself, it should take you a long time to understand and do all the steps properly.

However, if you use ZenBuisness, it should be way faster. You will always have a live chat option and phone support with experts for any help you need. Their worry-free service will make things easier for you.


After Starting Your Idaho LLC

After forming your LLC, there are still some things that you will need. The most important thing is to separate your business and personal assets. LLCs have limited liability protection that protects your personal assets from business liability. This is called a corporate veil. However, the corporate veil can be lifted or pierced by the court if the LLC is sued. In that case, the owners of the LLC become personally liable for their corporate debts. A few things like appointing a legit registered agent, having enough capital, and filing all the major documents with the state can save the LLCs from being pierced into the corporate veil.

Apart from that, there are a few things you need to take note of,

  • Get a company business bank account. Business accounts must be separated from personal accounts. 
  • File Idaho business permits & licenses. There are fees for business licenses to be paid to obtain the license. Permits such as health permits, building permits, signage permits, and others might require based on the type of business.
  • Get general liability insurance and professional liability insurance with coverage for employees.
  • File an Idaho LLC annual report or biennial report

This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings, to make sure your LLC is up-to-date.

Cost of Starting an LLC in the State of Idaho

LLCs can be formed for $0. Apart from the mandatory state filing fees, you don’t have to bear additional service charges if you do it yourself. Following are the fees and taxes LLCs in Idaho must pay to register and run a business in the state. Forming an LLC is no doubt cost-effective compared to other business structures. However, the fees and charges (tax-deductible) that you must pay to the state, such as name reservation fee, name filing fee, LLC filing fee, and Franchise Tax & Sales Tax (If applicable). Here are the main fees and taxes you must pay while forming your limited liability company in Idaho,

Fees/TaxAmount to be Paid
Name Reservation Fee (online/Mail)$20
File DBA Fee$25
Certificate of Organization Fee$120 (by mail and $100 online)
LLC Annual Fee$0
Sales Tax6%

In Idaho, an LLC name reservation is not mandatory. You can register your LLC name at the time of registering your LLC. If you wish to hold the name for some time without registering your LLC, then you can do that online. Your LLC name will be reserved for 4 months without registering your LLC. It can be done by paying $20.

In Idaho, an Annual Report has to be produced every year. It costs $0, which means it is free. LLCs in Idaho have to pay a Sales Tax of 6%. Read our guide on LLC costs in Idaho for more information.

Idaho Foreign LLC

If you are interested in forming a Foreign LLC in the state of Idaho, then you need to file the Certificate of Foreign LLC to the Idaho Secretary of State. Foreign LLCs allow you to operate your business in more than one state. Along with the Certificate of Foreign LLC, you need to submit some more documents, like the Certificate of Good Standing, etc., to the Idaho SOS to form your foreign LLC in the state of Idaho. To know more in detail, check out our guide on Idaho Foreign LLC.

Reasons to Start an LLC in the State of Idaho

Idaho limited liability company comes with a set of benefits. Along with the reduction in tax liabilities, LLCs will get a business funding option to run a successful business. The state has a one-time cost of filing. Apart from the filing fee, there are some federal taxes, and employment tax if the LLCs hire employees. Idaho is a desirable state to have an LLC as businesses get potential customers. Other than a few taxes, the state of Idaho does not have many annual costs. 

Along with tax benefits, having an LLC brings long-lasting benefits. A single-member LLC is treated as a sole proprietorship, and a multi-member LLC is treated as a typical corporation. Apart from a few federal and state taxes, LLCs do not have to pay any business taxes. Getting business loans is easy in Idaho, especially for an LLC. For a loan, you must submit a bank application. You can submit an online application too. LLCs in Idaho get immense business opportunities. In Idaho business resources are easily available. Even for an informal business structure, it is easy to get financial assistance.

LLCs do not have a business income tax, but the members have to pay personal income tax. Some of the key benefits of having an LLC in the state of Idaho are below, 

Lower Taxes  

While starting an LLC, everyone tries out different ways to save money, and the biggest of them is tax saving. This tax saving will be provided by LLC very efficiently in Idaho. Read more on Idaho’s classification of LLC tax.

Along with the division of the taxes into various slabs, the slab rates are lower than in other states. This will help in alleviating the gross business income of the members of Limited Liability Corporation. The property taxes are the second-lowest in Idaho which is attracting many businesses.

Robust State Budget  

Budgeting of the state is not directly linked with the business incorporation, but indirectly it affects many aspects of a business. We all know that the only way through which government earns money is through taxation. Now, if the government lacks funds, then the taxes ought to increase a bit. But the same is not in the case of the Idaho government. The state budget is stable, having a strong past track record due to which it is not affecting the business in any way negatively. 

Due to their strong budgeting, they also keep a thing of how they can increase the rate of projected jobs, and they are ranked number three in increasing the rates of jobs. 

High Opportunities 

The opportunity is a factor on which the future of the business depends. In Idaho, these opportunities are available in abundance. The environment is there may be competitive, but it pushes every LLC member towards their positive growth. This makes the economy of Idaho growth-oriented and helps out people grow. An example of the most significant opportunity is export. So, if you are somewhere related to export, then start an LLC in the state of Idaho without wasting any bit of time. 

LLC Member Enjoy Independence

In case the LLC has different partners, and one of them dies, then there will be little to no effect on the other LLC members. The functioning of LLC in the state of Idaho will be the same as it was before. This shows that no matter what happens to one stockholder, the other’s life and the business will remain unaffected. 

Top 3 Businesses in Idaho

To form an LLC in the state of Idaho is the best decision, but only in one situation. It would be best if you had a good business idea in your mind.  To help you out in your journey looking for the best businesses in Idaho, we are here to help. Here is a list of the best businesses in Idaho.

Potato Cultivation and Processing

The state of Idaho is very well known for its potato production as the state’s soil offers the best environment for the crop to grow. More than 311,000 acres of potato is used for potato farming which produces around 15 billion pounds of potato. Due to such a huge industry, the demand is manufacturing units that can convert raw potato into a valuable product.

There are many industries related to potato product manufacturing to exporting, which you can decide from.

Chemical Production

Many famous chemicals named benzylamine, calcium hydroxide, morpholine, etc., are produced in the state. Many milestone companies like Redox Chemicals and Argon Bio-energy registered in the state, responsible for the country’s major chemical production. Moreover, with the increasing advancements, the demand for chemicals is increasing, for which more products and companies are required.

Wood and Lumber Production

Based on the recently launched data, the Idaho state’s wood industry contributes around 6.8% to the manufacturing GDP of the state, which is increasing continuously.  Idaho’s paper industry is fulfilling the demand of its nearby states because of a dense forest cover in the state. Moreover, the state has the latest emerging technology due to which the waste of trees is better utilized in paper production, which can be the best business idea to opt for.

If you are thinking of investing less money, then you can opt for the following businesses.

  • Tutoring business
  • Advisory Firms
  • Printing Business
  • Boutique

Idaho LLC Formation Review

Time needed: 5 minutes.

Just to recap, here are the easy steps again when forming an LLC in Idaho. Click on the steps in this list to read the full detail.

  1. Name your Idaho LLC

    The first thing you must do is to choose a company name, which should be unique, easy to find, and available in the state.
    name your llc

  2. Choose a Registered Agent

    In Idaho, it is mandatory to select a registered agent for your LLC. Get a professional Registered Agent from LLC formation services to get things done hassle-free.
    registered agent

  3. File a Formation Certificate

    Filing a formation certificate is necessary when forming a Limited Liability Company in Idaho. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
    articles of organization

  4. Create an Operating Agreement

    An operating agreement is not a strict requirement in Idaho but something encouraged when you start an LLC to avoid future conflicts.
    operating agreement

  5. Get an EIN

    The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
    file EIN for llc

Things to Consider While Starting The LLC in the State of Idaho

In this article, all the basic steps are explained. However, there are more things that need to be considered. Running a business is not an easy task. An LLC is a simple business structure, but there are some common things that need to be done.

The first thing you need is a business plan. It must have all the details of your business activities. For example, business formation plans, business entity type, business expenses, business taxes (depending on the type of business), and all other business-related details.

Irrespective of the business type, there are some basic requirements, such as naming requirements and agent requirements. Names can be searched in the business name database. Besides, you can get the business name reservation service available in the business kit offered by professional business services.

A registered agent must be present at the principal office address during normal business hours. They are responsible for receiving legal papers, official government documents, formation documents, and other legal documents.

Whether a manager-managed LLC or a member-managed LLC, LLCs do not have to pay any taxes on their revenue. Members of the LLC will only have to pay federal income taxes based on their income. You might need a business accountant for various business checking, including the details of business licenses, business tax accounts, business bank accounts, business credit cards, and other business cards. There are several professional service providers available where business experts guide you through all these details.

Another important thing is the operating agreement which might not be mandatory in Idaho but helps in making important decisions, such as the form of business ownership among the members, future business partners, and Idaho business dissolution. It is also helpful if you are a foreign business entity and willing to start your foreign business in Idaho.

There are several online business services websites available. You can explore them and hire them to help you through the filing procedures. Amendment filings services, government filings, tax filings, and others will be hassle-free. Also, you can avoid late filings as they remind you about the upcoming filing deadlines. They will provide you with long-term business support at an affordable price.

How Fast Can I Form an LLC in Idaho

When filing via mail, an Idaho LLC may take up to 2-3 weeks for processing. In case of online filing, the time may be reduced to 7-10 business days. For an additional fee, the process can be expedited.

If you’re ready to take your business to the next level, consider forming an LLC in Idaho. It’s a simple process that requires only filing your articles of organization with the state and paying a small fee. You can do this online with Incfile and it typically takes just a few days. If you choose to go the old-fashioned route, it may take a little longer and you’ll need to visit the Secretary of State office.<h4>How Fast Can I Form an LLC in Idaho?</h4>First and foremost, you’ll need a name for your limited liability company. The name must be unique and not already taken by another entity or a person. You can use the Idaho Business Name Generator tool on Incfile to brainstorm possible names and narrow down your options.

Once you’ve selected your preferred name, you’ll need to reserve it for four months before filing the rest of the formation documents with the Secretary of State. This can be a great option if you’re not yet sure that the name is right for your business, or if you want to check with a potential lawyer before committing to an official name.<h4>Registered Agent Service</h4>When you form an LLC in Idaho, you’ll need a registered agent to receive state and legal communications on behalf of your business. They’ll also handle any state or local taxes, maintenance requirements, and other administrative tasks that could pile up on your schedule if you were to do it yourself.<h4>Bank Account</h4>Once your LLC has been formed, you’ll need to open a business bank account to begin operations. The good news is that in Idaho, there are many banks to choose from, including credit unions and local banks like Idaho Central Credit Union and Bank of Idaho. These institutions focus on strengthening the local economy and often offer low-cost or free accounts for new businesses.

An EIN is also needed for tax purposes, and you can get one from the IRS or have a service like Incfile get it for you as part of the LLC formation process. This number is important for submitting your federal tax returns, paying payroll taxes for your employees and more.<h4>Operating Agreement</h4>For multi-member LLCs, you’ll need an operating agreement to outline how your business will be managed and operated. This document will ensure that everyone in the LLC is on the same page about how things will work and what will happen in case of an emergency or a member leaving the company.<h4>Certificate of Good Standing</h4>A certificate of good standing is a document that proves your LLC is legitimate and active with the state. It is important to have this document when opening a bank account, selling your business or other transactions that require a formal signature.

In addition to an EIN, your LLC must have a Certificate of Good Standing in order to conduct business and meet state requirements. This is done by filling out the appropriate forms and submitting them to the Secretary of State.

F.A.Qs

Can I file an LLC in Idaho by myself?

If you are a resident of Idaho, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.

What is the cost of forming an LLC in Idaho in a year?

Apart from the formation fee of $100 (domestic LLC) and $100 (foreign LLC), LLC costs in Idaho include $0 for Annual Reports every year. LLCs are liable to pay a sales tax of 6% every year.

How long does it take to get an LLC in the state of Idaho?

It takes 7-10 business days to get an LLC in the state of Idaho. If you hire a professional LLC service, then it might take less than that. We recommend ZenBusiness, which has an impeccable turnaround time.

How to renew my LLC in the state of Idaho?

Every year all the LLCs have to submit an Annual Report for free to the Idaho Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.

What is the tax structure for an LLC in the state of Idaho?

Generally, for LLCs, it is a default tax structure. Once you obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens. Read more on the Idaho Classification of LLC Tax.

In Conclusion

LLCs are easier to establish than other business structures. Small businesses, especially start-ups, can easily start an LLC in the state of Idaho at a bare minimum cost. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. The formation of limited liability companies requires much lesser documents and legal processes. Share your queries with us, and leave a comment below.

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