Forming a limited liability company (LLC) is one of the smartest decisions entrepreneurs and small business owners can make. They come with personal liability protection, tax benefits, and ownership and management flexibility that other business entities can’t.
Unfortunately, the fees and paperwork required to start an LLC hinder many business owners from enjoying these benefits.
That’s where we come in.
In this post, we’ll explore the main LLC fees Idaho businesses need to know about and when and how often they’re due. We’ll also share with you some additional forms and documents you should consider filing. We’ll discuss:
Let’s get started:
Idaho Business Name Reservation Fees
A whopping 99.2% of organizations operating in the Gem State are small businesses. The downside is that one of them might already be using your preferred business name. Run a business name search on Idaho’s Secretary of State website.
Since you’re forming an LLC, you need to include “Limited Liability Company,” “LLC,” “L.L.C.,” “LC,” or “L.C.” in the organization’s name. In addition, you can’t include any profane language or any words that misrepresent your organization. These include but are not limited to “corporation,” “incorporated,” “FBI,” FDA,” “bank,” “trust,” “insurance,” “insurance company,” etc. If your organization is one of these (a bank, for instance), contact Idaho’s Secretary of State’s office for additional guidance.
You should also check your LLC name’s availability in the Trademark Electronic Search System (TESS) database. The TESS database will help you determine if you can market your business as your LLC’s official name or if doing so puts you at risk of trademark infringement.
If it’s available on the TESS database, you can reserve your business name for $40 while you get the rest of your paperwork together. Doing this gives you exclusive rights to the name for four months.
If another organization is already using the name you want, all is not lost. You can register your LLC name to use for legal and financial purposes, then file a “Doing Business As” (DBA) name to use when building brand recognition. DBA names are great for marketing materials, networking events, and everyday conversation—especially if your official business name is hard to remember. Filing your Certificate of Assumed Business Name will cost you $45.
Also, check the domain availability of whatever business name you choose to use for messaging purposes. Your LLC name doesn’t have to be the same as your URL, but we recommend that it is—at least in some variation. You can check your domain availability on who.is. Your search result will show you multiple variations of your domain, like “.com,” “.net,” and “.org,” and let you know if it’s for sale. Domain name prices vary.
LLC Fees For Registered Agents
Your registered agent is the person or business entity that will be receiving your LLC’s legal and financial documents. They can be pretty much anyone in your company as long as they have a physical address in Idaho. If a legal business entity has filed a physical address with the Secretary of State’s office, it can be your registered agent instead.
If they only have a P.O. Box, they won’t qualify as a registered agent.
Before anyone volunteers to become your LLC’s registered agent, know that their physical address becomes public knowledge after your LLC becomes official. For privacy reasons, many business owners and entrepreneurs opt to work with a commercial registered agent service. Do your research when looking for registered agent companies. Typically, you should expect to pay $49 or more per year for this service.
If your registered agent is in-house, having one is free.
Idaho Filing As An LLC Fees
With your business name picked and your registered agent ready to go, it’s time to file your certificate of organization. While the name sounds official (and it is), this is just a document that details all of the essential information pertaining to your LLC. Also, even though it sounds intimidating, it’s only two pages long and requires you to know:
Double-check to ensure all this information is accurate. If not, you may have to refile or even risk facing legal consequences down the road.
Filing your certificate of organization costs $120.
Idaho LLC Fees For Operating Agreements
Idaho does not require your LLC to submit an operating agreement. Even so, we strongly recommend you draft one and have your members sign it. Your operating agreement defines your LLC’s rules and regulations and, in a way, acts as your organization’s constitution.
Whether you’re a multi-member LLC with hundreds of members or a single-member LLC with no employees, having this document can only benefit your business. It can even help you think about aspects of your organization that you don’t already have a plan for.
Some operating agreements are pretty lengthy, and their needs vary from business to business. Here are a few of the core elements you should include in your LLC:
While many businesses don’t want to think about it, you should also have a plan for how to dissolve an LLC.
Your operating agreement is an excellent reference point anytime you make a significant decision or if a member has a financial or legal question about your organization. It can also protect your business in the event of a legal and financial dispute. Without one, critical decisions may be left up to a judge or jury to decide which may not be in your best interest.
You can draft your operating agreement for free, but we recommend hiring an attorney.
Business License Fees For Idaho LLCs
Whether or not you need a business license depends on where you’re operating and what industry you’re in. Idaho doesn’t have a general business license, but you will need a permit or license with a state agency if your business involves agriculture, wildlife, transportation, or selling alcoholic beverages. Your county or city clerk’s office may also require you to have a permit or license, so check your local government website for more information.
The cost and renewal periods for business licenses and permits will vary.
Sales Tax Registration Fees
You’re required to have a seller’s permit in Idaho when you’re selling goods, which also involves collecting sales tax, filing a sales and use tax return, and forwarding the tax to Iadho’s Tax Commission. Currently, both the sales tax rate and the use tax rate are both 6%.
Here’s the good news: a seller’s permit is free, and you can obtain it by filling out the Idaho Business Registration application. Upon completion, you will receive your permit in around ten days if you file online or up to four weeks via mail.Idaho LLC Annual Fees
Now that your articles of organization, operating agreement, business permits and licenses, and seller’s permits are in order—congratulations! You’ve completed the brunt of the work for getting your LLC in good standing with your local, state, and federal governments. Now, you must remain in good standing by paying taxes and filling out your annual report.
Your annual report needs to be updated so vendors, creditors, and other contacts can easily get in touch with your LLC.
Your annual report is free to file in Idaho, which makes forming an LLC in the Gem State very desirable compared to some other states when there is a fee. For example, Arkansas LLC fees cost $150 each year, Mississippi LLC fees are $250 each year, and California LLC fees are $800+ each year!
Total Cost Of LLC Fees Idaho
Here’s a full list of the fees we’ve covered and how often they’re due:
Fee Type | Cost | HOW OFTEN |
|---|---|---|
Business name reservation | $40 | One time |
DBA name designation | $45 | One time |
Registered agent fees | $0, or $49 or more | Annually |
Articles of organization filing fee | $120 | One time |
Operating agreement costs | $0 | One time |
Business license fee | Varies | Annually or biennially |
Sales tax registration fees | $0 | Annually |
Annual fees | $0 | Annually |
Additional FAQs
Still have more questions about Idaho LLC fees or LLCs in general? We’re here to help:
Your annual report requires much of the same information you’ve already included in your articles of organization, such as:
You can file your report on the website of Idaho’s Secretary of State.
We covered the main fees in this article. Most of the additional fees you may experience will be from the licenses and permits you may be required to obtain based on what your business is and where you’re operating.
A certificate of good standing costs $10 for a physical copy. Usually, you’ll need to have a copy of this certificate to open a business bank account or work with a lending institution. It helps to prove your organization’s legitimacy.
Paying yourself from an LLC is really easy. First, refer to your operating agreement—especially if your LLC has multiple managers or owners. Then, based on that agreement, simply transfer a portion of your organization’s cash reserve from your business account to your personal account, or divide it among other LLC members based on your terms.
Conclusion: Everything You Need To Know About Idaho LLC Fees
Are you ready to form an LLC in Idaho and enjoy all the fantastic benefits you’ll have as a business owner? Now that you know the required documents and fees to start and maintain your LLC, you’re on your way to running a successful business!
Are you ready to capitalize on that success? Check out The Lazy Man’s Guide to Living The Good Life, and discover how to amplify your opportunities and run a booming organization!