Cost to Form an LLC in Idaho – Including Tax & Renewal Fee

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    Greetings from Idaho, the perfect place to kick-start your business adventure! Considering setting up a Limited Liability Company (LLC)? Smart move! However, before diving in, familiarize yourself with the necessary expenses. These include initial application fees and ongoing costs to maintain your LLC.

    This guide will break down all potential expenses involved in establishing an LLC in Idaho. Need a helping hand? LLC services like Tailor Brands can simplify the paperwork and ensure accuracy. With the right guidance and information, you’ll be fully equipped to manage the financial aspects and intricacies of setting up your LLC in Idaho.

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    What Is the Cost of Forming an LLC in Idaho?

    In Idaho, the main expense for setting up an LLC is the $100 fee required to submit your LLC’s Certificate of Organization online to the Idaho Secretary of State.

    Idaho Foreign LLC Formation Costs

    If you currently have an LLC registered in another state and want to expand your business into Idaho, you need to register your LLC as a foreign entity within the state.

    The LLC registration fee for a foreign LLC in Idaho is $100. You’ll need to file a Foreign Registration Statement for a Limited Liability Company to complete this process.

    Annual Cost for LLCs in Idaho

    Once you set up your Limited Liability Company (LLC) in Idaho, there are specific ongoing compliance costs to keep in mind. Here’s what you need to know about maintaining your Idaho LLC:

    You must file an Idaho LLC Annual Report to keep your LLC’s information up-to-date and comply with state regulations, allowing your business to operate smoothly. Unlike some states that charge a fee for this, Idaho requires this report as a simple information update, submitted to the Secretary of State at no additional cost.

    Securing a registered agent for your LLC in Idaho is essential. This agent handles the receipt of legal documents for your company. Costs for a registered agent can differ based on your choice between a professional service or assuming this duty personally.

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    How Much Does It Cost to Start an LLC in Idaho With the Best LLC Service? 

    Tailor Brands LLC Formation Cost

    Tailor Brands plans and pricing

    When setting up an LLC in Idaho, the starting cost is $100, though this can increase with additional services. Typically, processing takes 2 to 3 weeks. However, you can opt for expedited processing, which reduces the wait to 4 to 6 days for an extra $50. For urgent needs, a rush option that processes within 1 to 2 days is available for an additional $100.

    Tailor Brands rolls out several LLC formation packages. Their Lite LLC plan is the most wallet-friendly, handling basic LLC formation service at just the cost of the state filing fee. At $199 plus state fees, the Essential LLC plan speeds up the formation process and adds annual compliance, and an operating agreement. This plan also tacks on a yearly renewal fee of $199. 

    For those seeking the full suite, the Elite LLC plan at $249 plus state fees, throws in everything from the Essential plan along with a slew of bonuses: a complimentary business domain for a year, tools to craft a DIY website, an online store, eight free logos, a digital business card, business card tools, and a social media post creator. Keeping these services with Tailor Brands comes with a yearly fee of $249.

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    Additional Costs When Starting an LLC in Idaho

    Idaho LLC Name Costs

    Choosing a name for your Limited Liability Company in Idaho comes at no cost. When you select your LLC name, there are no additional charges involved. The approval of your Idaho LLC name is included at no extra fee when your Certificate of Organization is accepted by the state.

    You may have read that reserving an LLC name is necessary, but this is not the case for most states. There’s no obligation to reserve a name prior to forming your LLC.

    Should you decide to reserve a name for your LLC, you have that option. You can secure your preferred name for up to four months before formally establishing your LLC by submitting an Application for Reservation of Legal Entity Name along with a $20 filing fee.

    For Foreign LLCs intending to operate in Idaho but facing unavailability of their current name, there’s a workaround. These LLCs can register a new name by filing an Application for Registration of Foreign Name and paying a $60 fee.

    Idaho Registered Agent Costs

    Idaho requires that you appoint a Registered Agent for your LLC, which can be done at no cost if you act as your own agent, or you can opt for a professional service that typically charges about $125 annually. 

    A Registered Agent in Idaho is tasked with receiving legal documents and official state communications on behalf of your LLC. They must have a physical address in the state and be available during normal business hours.

    If you choose to serve as your own Registered Agent or appoint someone you know, there are no additional fees. However, you can also hire a Registered Agent service, which usually costs between $100 to $300 per year. These companies not only fulfill the role of Registered Agent but may also provide extra business services and help maintain your privacy.

    Hiring a professional Registered Agent service is especially beneficial if:

    • You don’t have an address in Idaho, as state law requires Registered Agents to have a physical location in the state.
    • You prefer to keep your address private, which can often be achieved by using the service provider’s address instead of your own.

    Idaho Operating Agreement Costs

    An Idaho LLC Operating Agreement is a formal document that outlines the details of LLC ownership, management structures, and the distribution of profits among members. It’s recommended for both Single-Member and Multi-Member LLCs to draft an Operating Agreement, keep it with their business records, and distribute copies to each member.

    Although many services charge between $50 to $200 for drafting LLC Operating Agreements, there’s no mandatory fee for creating one.

    Idaho EIN Cost

    The Employer Identification Number (EIN), also known as the Federal Employer Identification Number (FEIN), is crucial for various tasks like filing income taxes, opening an LLC bank account, and hiring employees. The fee for obtaining an LLC EIN is $0.

    While many services charge a fee to acquire an EIN for your LLC, you can actually obtain it for free. The Internal Revenue Service (IRS) provides a simple online application process that only takes a few minutes to complete.

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    Idaho LLC Taxes

    The expenses linked to Idaho LLC taxes differ considerably because of the variety of taxes that owners must pay annually. These taxes include:

    Federal Income Taxes

    The IRS has specific rules for how LLCs are treated for federal income taxes, depending on the structure of your LLC. Single-member LLCs are considered Disregarded Entities, which means they don’t file their own federal income tax returns.

    Instead, the owner files the tax return and paying any taxes due. The tax classification varies with the type of LLC ownership: if owned by an individual, it’s treated as a Sole Proprietorship, and if owned by another company, it’s taxed as a branch of the parent company.

    Multi-Member LLC Taxes

    For LLCs that have multiple owners, the IRS categorizes them as Partnerships. In this arrangement, the LLC must file a 1065 Partnership Return and issue a Schedule K-1 to each owner, detailing their portion of the profits. This income then “flows through” to the owners, who report it on their personal tax returns (Form 1040).

    Husband and Wife LLC Taxes

    In community property states like Idaho, when a husband and wife jointly own an LLC, they can opt to be taxed as a Single-Member LLC (Qualified Joint Venture) instead of a Multi-Member LLC. This selection can be made during the EIN application process or by sending a request to the IRS. Without a specific election, the default tax classification for such an LLC defaults to a Partnership.

    Electing Corporate Taxation

    An LLC has the flexibility to choose corporate taxation instead of its default status. This involves selecting either S-Corporation or C-Corporation tax status. Opting for S-corporation status can lead to savings on self-employment taxes, whereas C-corporation status may offer advantages for larger employers, such as healthcare fringe benefits. It’s advisable to consult with an accountant before making this election.

    Idaho State Income Tax

    In Idaho, Single-Member LLCs don’t file a state tax return; instead, the owner reports the LLC’s profits or losses on their personal state tax return. Multi-member LLCs may be required to file a state-level Partnership return, with each owner then reporting their share of the profits or losses on their individual returns. Specific business taxes may apply depending on the industry.

    Local Income Tax

    You and your LLC may be subject to local income taxes imposed by your municipality. It’s prudent to consult with an accountant for precise tax preparation and filing.

    Idaho Sales Tax

    If you plan to sell products in Idaho, you’ll likely need to collect sales tax, which requires a Seller’s Permit from the Idaho State Tax Commission (STC). This permit allows you to collect taxes on retail sales and is often referred to as a resale, wholesale, or sales tax permit/license.

    Idaho LLC Payroll Taxes

    If your Idaho LLC employs workers, managing payroll taxes is crucial. This includes withholding federal and state income taxes, as well as payments for Social Security, Medicare, and unemployment taxes, among other deductions. While it’s possible to manage payroll taxes on your own, enlisting professional assistance can help minimize errors and avoid penalties.

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    Idaho LLC Cost – FAQs


    Setting up an LLC in Idaho requires a thorough understanding of the costs involved. Idaho offers a business-friendly environment with simple regulations, but expenses such as filing fees, registered agent fees, and potential consultancy fees should be considered. Using professional LLC service providers like Tailor Brands can simplify the formation process.

    Entrepreneurs need to evaluate these costs against the benefits of Idaho’s favorable business climate, legal framework, and overall reputation to ensure that their decision matches their goals and financial capabilities.

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