How to Form an LLC in Idaho | 2025 Guide

Over 99% of all businesses in Idaho are small businesses, according to the U.S. Small Business Administration (SBA)¹. As one of the more business-friendly states in the West, Idaho offers affordable startup costs, streamlined filings through the Idaho Secretary of State, and a favorable tax climate for small business owners.

In this guide, you'll learn how to form an LLC in Idaho, step-by-step, including state-specific requirements, filing fees, and the benefits of registering your company in the Gem State. We'll also discuss the Wise Business account. The global account that can help your company with all things cross-border.

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How to Start an LLC in Idaho (Step-by-Step)

1. Choose a Name for Your Idaho LLC

Start by selecting a business name that complies with Idaho naming requirements. Your name must:

• Include "Limited Liability Company" or abbreviations like "LLC" or "L.L.C."
• Be distinguishable from any existing business name registered with the Idaho Secretary of State
• Avoid restricted words that could confuse your LLC with a government agency (like “Treasury” or “FBI”).

You can use the Idaho Secretary of State's online business search² tool to check name availability. If you want to reserve your LLC name before filing, you can submit a name reservation request for $20, which holds the name for up to four months.

If you plan to operate under a different name than your registered LLC name, you must file for an assumed business name (also called a DBA) with the Idaho Secretary of State.

2. Appoint a Registered Agent

Every Idaho LLC must have a registered agent with a physical address in the state. This person or business is responsible for receiving legal notices, tax forms, and correspondence from the state.

Your registered agent can be:

• An individual Idaho resident.
• A business entity authorized to operate in Idaho that provides registered agent services.

If you don’t maintain a registered agent, you risk administrative dissolution of your LLC, so choose someone reliable and ensure their information remains current with the Idaho Secretary of State.

3. File a Certificate of Organization

To officially create your LLC, you must file a Certificate of Organization³ with the Idaho Secretary of State. This document can be submitted online or by mail.

Your Certificate of Organization must include:

• LLC name.
• Street and mailing address of the principal office.
• Registered agent’s name and physical address.
• Name and address of at least one organizer.

The filing fee is $100 for online submissions or $120 if mailed. The Idaho Secretary of State typically processes online applications within 1–3 business days.

4. Draft an LLC Operating Agreement

Although Idaho does not legally require an Operating Agreement, it’s highly recommended for multi-member LLCs. This internal document outlines:

• Each member’s ownership percentage.
• Roles and responsibilities.
• Profit and loss distribution.
• Voting procedures.
• Procedures for adding or removing members.

An Operating Agreement helps establish clear expectations among members and protects your LLC’s limited liability status in legal disputes.

5. Apply for an Employer Identification Number (EIN) from the IRS

An EIN is required to:

• Hire employees.
• Open a business bank account.
• File federal taxes.
• Apply for local business licenses.

You can apply for an EIN directly from the IRS⁴ at no cost via their online application. Even if you're a single-member LLC with no employees, having an EIN helps keep your personal and business finances separate.

6. Register with the Idaho State Tax Commission

Depending on your business activities, you may need to register with the Idaho State Tax Commission. This includes:

• Sales tax permit for businesses selling tangible goods or certain services.
• Unemployment insurance tax registration if you have employees.
• Income tax withholding if your business processes payroll.

Use the Idaho Business Registration System (IBRS) to register for applicable state taxes.

7. Obtain Business Licenses and Permits

Idaho does not issue a statewide business license, but local jurisdictions may require specific permits. Check with your city clerk’s office or county authorities to determine which licenses apply to your industry.

Examples:

• Health permits for food services.
• Building permits for construction companies.
• Professional licenses for certain trades.

8. File Your Annual Report

Every Idaho LLC must file an annual report with the Idaho Secretary of State. The report updates your LLC’s contact details and confirms that your registered agent is still active.

• Due Date: Your LLC’s anniversary month (the month it was formed).
• Filing Fee: Free.
• Filing Method: Online via the Idaho Secretary of State’s website.

Mark your calendar for the annual report deadline, as it can result in late fees or administrative dissolution.

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What Are the Business Requirements for an Idaho LLC?

To remain in good standing with the state, Idaho LLCs must:

• Maintain a valid registered agent.
• Keep business and personal finances separate (use a dedicated business bank account).
• File an annual report by the end of the anniversary month.
• Maintain accurate records of meetings, financials, and decisions (especially for multi-member LLCs).
• Comply with applicable Idaho Department of Labor tax obligations if hiring employees.
• Include profits and losses on your personal tax return unless you elect corporate taxation.

These compliance tasks are essential to preserving your LLC’s liability protection and avoiding state penalties.

What Are the Benefits of Starting an LLC in Idaho?

There are numerous benefits of starting an Idaho LLC:

• Limited Liability: Protects your personal assets from business debts and lawsuits.
• Pass-Through Taxation: Most Idaho LLCs are taxed as pass-through entities, meaning profits are reported on the owners' personal tax returns, avoiding double taxation.
• Affordable Startup: Idaho has one of the lowest LLC filing fees in the country at $100.
• No Franchise Tax: Idaho doesn’t charge an annual franchise tax on LLCs.
• Ease of Formation: The online filing system through the Secretary of State makes setup fast and user-friendly.
• Business-Friendly Environment: A strong support network for small business owners, including tax incentives and local resources.

How Much Does It Cost to Start an LLC in Idaho?

Here’s a breakdown of typical startup costs:

Expense	Cost
Certificate of Organization	$100 (online), $120 (mail)
Name Reservation (optional)	$20
Registered Agent (if hired)	$100–$300/year
Assumed Business Name (if needed)	$25
Operating Agreement (optional)	Varies (DIY or legal help)
EIN from IRS	Free
Business Licenses/Permits	Varies by city

Can I Open an LLC in Idaho Without Living There?

Yes. You do not need to live in Idaho to start an LLC there. Idaho allows nonresidents and foreign LLCs to operate as long as you:

• Appoint a registered agent with a physical address in Idaho.
• File your formation documents with the Idaho Secretary of State.
• Comply with Idaho tax and licensing requirements.

Can a Nonresident Open a Company in Idaho?

Absolutely. Idaho does not impose residency or citizenship requirements for LLC members or managers. Foreign nationals can form an LLC by:

• Registering a foreign LLC if its business is already formed in another country or state.
• Applying for an EIN through the IRS.
• Appointing a local registered agent.
• Complying with Idaho licensing and tax regulations.

Nonresidents must also ensure compliance with federal obligations such as reporting foreign ownership (when applicable) and submitting appropriate documentation for tax and immigration purposes.

Idaho LLC vs Other States: How It Compares

Feature	Idaho	Oregon	Nevada	Utah
Formation Fee	$100 (online)	$100	$75	$54
Annual Report Fee	Free	$100	$0 (but business license required)	$20
Registered Agent Required	Yes	Yes	Yes	Yes
State Sales Tax	6%	No sales tax	6.85%	4.85%
Non-Resident Formation	Allowed	Allowed	Allowed	Allowed

Idaho strikes a balance between affordability and simplicity.

Unlike Oregon, it does collect sales tax, but it also doesn’t charge an annual report fee.

Compared to Nevada and Utah, Idaho’s overall compliance requirements are minimal and cost-effective, making it an attractive option for small business owners seeking flexibility and protection.

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FAQs About Idaho LLCs

Does Idaho Offer Privacy Protections for LLCs?

Idaho requires members' or managers' names to be listed on the Certificate of Organization, which becomes part of the public record. For greater anonymity, consider using a registered agent service and consulting with a business attorney about structuring options.

Why Do People Use Idaho for LLCs?

Entrepreneurs choose Idaho for its affordability, no franchise tax, and streamlined compliance. The 6% sales tax, lack of annual filing fees, and welcoming environment for nonresidents make it a strong choice for domestic and foreign LLCs alike.

Is an Idaho LLC Tax-Free?

No, Idaho LLCs are not tax-free. While there's no franchise tax, LLCs may be subject to:

• Sales tax.
• Unemployment insurance tax if they have employees.
• Income tax reporting through a personal tax return or business return, depending on how the LLC is taxed.

What Are the Disadvantages of an Idaho LLC?

Some disadvantages of forming an Idaho LLC to consider include:

• No privacy: Owner names are on public record.
• Local license requirements vary widely.
• Failure to file your annual report by the end of your LLC’s anniversary month can result in dissolution.
• No centralized licensing portal: permits must be checked with the city clerk’s office.

Conclusion

Idaho’s favorable business climate and accessible state agencies, including the Idaho Secretary of State and Idaho State Tax Commission, make it easier than ever to launch and grow your company. If you're ready to move forward, gather your documents, register your LLC, and take the first step toward building a successful business.

Form an LLC in State
Iowa
Illinois

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Sources

1. Small Business Profile: Idaho – SBA Office of Advocacy (2024)
2. Idaho Business Entity Search – SOSBiz
3. Idaho Secretary of State – Business Forms
4. Apply for an EIN – IRS