Last Updated on June 13, 2022 by Fair Punishment Team

Currently thinking about taking the leap and starting your own business? Otherwise referred to as a Limited Liability Company, an LLC is a unique business model that equips the owner with the benefits of tax advantages and liability protection, which makes it a great option for small businesses.

Even though starting up your very own Limited Liability Company in Idaho might seem like a daunting task, it doesn’t have to be. In fact, by making sure that you follow our six steps that we are going to be sharing with you below, you are going to find yourself the owner of a start-up LLC in no time at all. 

In this guide, you will find a simple and easy to follow checklist that will help to simplify the process as much as possible.

From how to choose your name to what an operating agreement is, we have made sure to cover all bases so that you can successfully get your LLC up and running in Idaho without any missteps. So, just keep scrolling! 

1. Name Your Idaho LLC 

When you decide to start your own Limited Liability Company, one of the most important things that you are going to need to do is to give your new business a name! In order to register your LLC as an official business, you are first going to need to provide a name, so it only makes sense to make the name selection one of the very first things that you do. 

Alongside making sure that you are giving your LLC a clear and catchy name that clearly communicates to the public what it is that you are going to be offering, it is also just as important to make sure that you are complying with the rules and regulations set out by Ideaho.

Here is a breakdown of the most important requirements that you are going to need to take into account when choosing a name for your new business:

• You must make sure that the name that you choose for your new business contains either the words “Limited Liability Company “”L.L.C” or “LLC”. Even though this is a requirement, you have complete control over where your chosen term appears in the name of your company!
• You must refrain from using any restricted words that aren’t allowed to be used in LLC names. The most common types of words that are restricted from being used are words such as “bank” “attorney” and “lawyer”. However, if you would like to view the full list of words that are currently restricted from being used in LLC names in Idaho, please click here.
• You must also make sure that you are not using a name that is already registered to another existing LLC. The best way that you can double check whether or not the name that you would like to use is suitable for your business is by checking it in a database.

As a side note, along with all of the above, when picking a name for your LLC you might also want to consider what the URL availability of the name that you would like to use is.

Generally speaking, many people that start an LLC will usually purchase a domain name using the same title to be able to open an online store. So, we recommend that you try and make sure that the name that you choose for your business can also be used as a domain name, too.

So, before making your final decision on what name you are going to be using for your Limited Liability Company, we recommend that you check to see if the domain is available.

2. Choose A Registered Agent 

Once you have settled on a name that you would like to use for your LLC and you have gone ahead and registered it, you are then going to need to give your LLC a registered agent! 

Essentially, a registered agent will receive all of the mail that your business receives, including legal and tax information, as well as any correspondence from the government. In addition to this, your registered agent will also be responsible for informing you of any legal disputes.

In other words, your registered agent will be appointed to handle all legal and business matters on behalf of your LLC.

A registered agent is a role that can be filled by anyone, including yourself or another member of your LLC.

However, it is important to keep in mind that there are a variety of requirements put in place by Idaho that you are going to need to make sure that your appointed registered agent meets. These consist of the following:

• The registered agent must be located in Idaho and provide registered agent services.
• The registered agent must be able to receive legal and business notices and documents during the standard business hours in Idaho.

3. File The Articles Of Incorporation 

Alongside making sure that you are choosing the appropriate name for your LCC as well as appointing the right registered agent, you are also going to be required to prepare and file the Articles of Incorporation.

If you’re too sure what this is, the Articles of Incorporation are a type of document that will be able to help establish your new company by clearly outlining all of the important information about it.

In order to prepare your Articles of Incorporation for your LLC in Idaho, you are going to need to file them with the Idaho Department of Commerce Affairs so that you will be able to officially register your LLC correctly.

While this all might seem like a pretty daunting task, the truth is that filing the Articles of Incorporation is relatively easy, and can even be sent by post once you have finished it so that it can be approved!

To help give you a better idea of what you can expect your Articles of Incorporation to look like, here is a basic breakdown of the information that a standard Articles of Incorporation will need to include:

• The time period that your LLC will be in existence. 
• The full name of your LLC, as well as the address it has been registered to.
• The name/address of your registered agent.
• Contact information of all LLC organizers.

Here is the form that you will need to use to create your Articles of Incorporation.

4. Create An Operating Agreement 

Next up, you’re going to need to go ahead and make an operating agreement. Essentially, an operating agreement is a type of business document that will allow you to clearly outline how you plan to operate and conduct your Limited Liability Company. 

At the time of writing, you are not actually required by law to create an operating agreement for your LLC in Idaho, but it is strongly recommended that you do so.

This is because an operating agreement, once completed, will serve as an internal document that you will be able to refer to in the event that your LLC (or even a member of your LLC) is involved in a misunderstanding or legal dispute. 

If you do not choose to create an operating agreement for your Limited Liability Company, it means that the state of Idaho will have jurisdiction over your LLC in the event of a dispute.

With that being said, a lack of operating agreement will mean that you won’t have the power to settle a dispute, instead, the courts will be responsible for creating a solution to the issue/dispute raised, and that might not always be in the best interest of your company. 

Due to this, many LLC owners agree that an operating agreement, while not required or mandatory, is an essential documentation that all LLCs need to make sure that they have.

To give you a better understanding of how an operating agreement works, here’s a quick breakdown of what a basic operating agreement will include:

• Information regarding your Articles of Incorporation.
• What your LLC is, and what it is that it offers.
• The various members of your LLC, as well as what their responsibilities are within the company.
• The full name and contact information of the person/company that you have appointed to be your registered agent.
• What the duration of your LLC is.
• The full name of your LLC, as well as the address that you registered it to upon creating your LLC.
• The management structure of your LLC.
• What the general procedure is for hiring new employees, as well as what the exit process is.
• An outline of various liability and indemnification clauses. 

As a side note, in addition to giving you the ability to help settle any disputes internally, an operating agreement also gives your LLC legal credibility in the eyes of the state, so it really does make sense for you to acquire one.

If you would like to find out more about how you can set up your own operating agreement in the state of Idaho for your LLC, please click here for a template.

5. Get An EIN Number 

After you have sorted out all of the necessary paperwork to get your business up and running, you are then going to need to make sure that you have assigned your Limited Liability Company with an EIN! 

If you’re not already aware, EIN stands for Employer Identification Number, and it is a legal requirement in the state of Idaho for LLCs to have one for state tax filing purposes.

In addition to this, an Employee Identification Number is also designed to make sure that you will be able to operate your business more smoothly, including:

• Having the ability to be able to set up your own business bank or credit card
• The ability to hire employees as and when needed
• The ability to seek financial aid or funding as and when required

Just to reiterate, it is a legal requirement for you to assign your Limited Liability Company with an Employer Identification Number.

If you do not do this, you will not be able to legally operate your business within the state of Idaho, and if you are caught operating your business without one, not only will you likely receive a fine, but you might also be prevented from any further operation of your business within the state.

6. Decide If You Need A BIN 

The final consideration that you are going to need to make when starting your Idaho LLC is whether or not you are going to need a BIN. Otherwise referred to as a Business Identification Number, this unique identifier is not always necessary in the way that an EID is, although you’re still going to need to determine whether or not your LLC is going to need one.

In Idaho currently, the only required identifier is an EID, which is the standard identifier used across LLCs all throughout the country to be able to tax the business entity as required.

However, in the event that you are planning to hire employees in the future (or even if you are thinking about launching your LLC with a team of employees) you are going to need to make sure that you have also acquired a Business Identification Number along with an Employer Identification Number.

The reason? Well, unlike the EID, the BIN is a unique identification code that is specifically used to be able to tax LLCs for payroll purposes, which is why it is only necessary to have if an LLC has hired employees.

If you would like to find out more about whether your LLC is going to need to get a BIN, as well as how to go about acquiring one in the state of Idaho, just click here for more information. 

Frequently Asked Questions

Do I Need A Business License? 

Along with everything that we have talked you through above, one of the biggest questions that many new LLC owners find themselves scratching their heads over is whether or not they are going to be required to get a business license to legally operate their LLC.

The answer to this question will ultimately depend on a number of factors, including the state that you are planning to operate your LLC within. When it comes to Idaho, at the time of writing this guide, Idaho only requires businesses within certain industries to get a business license.

These industries generally include the childcare services, the food service industry and the construction industry. If you would like to learn more about what your particular business may or may not require, please click here to learn more about Idaho’s licenses, permits and regulations.

What Are The Tax Requirements For An LLC?

Whether or not your LLC gets taxed by the state on its profit will greatly depend on whether or not you choose to elect your LLC as a corporation. If you do choose to do this, then your LLC will be required to file a separate tax return so that corporation income can be taxed appropriately on your LLC.