Starting a Idaho LLC is straightforward. You file paperwork with the Idaho Secretary of State, pay the $100 filing fee, and wait for approval. No lawyer required.

This guide walks you through the entire process step-by-step, including costs, timelines, required forms, and common mistakes to avoid.

💡 Did You Know? Idaho does not require annual reports for LLCs.

⏱️ Time Investment: 1-2 hours to complete paperwork. 5-7 days for state processing.

Step-by-Step Guide to Forming a Idaho LLC

Choose Your LLC Name

Your Idaho LLC name must:
- Include "Limited Liability Company," "LLC or L.L.C."
- Be distinguishable from existing Idaho businesses
- Not contain restricted words (bank, insurance, corporation) without approval
Check name availability: Idaho Secretary of State Business Search

⚠️ Common Mistake: Don't skip the name search. If your name is too similar to an existing business, your filing will be rejected and you'll lose the $100 fee.
Appoint a Registered Agent

Idaho requires every LLC to have a registered agent—a person or company authorized to receive legal documents on behalf of your business.

Requirements:
- Must have a physical Idaho address (no P.O. boxes)
- Must be available during normal business hours
- Can be yourself, a partner, or a professional service
Cost: $0 if you act as your own agent. Professional services cost $100-300/year.
File Certificate of Organization

This is the official document that creates your LLC. You'll submit it to the Idaho Secretary of State.

Required information:
- LLC name
- Purpose of business (can be general)
- Registered agent name and address
- Management structure (member-managed or manager-managed)
- Principal office address
How to file:
- Online: Idaho Secretary of State Online Filing (fastest)
- Mail: Download and mail completed form (slower)
Filing Fee: $100 (non-refundable)
Visit Idaho Secretary of State
Create an Operating Agreement

While not always legally required, an Operating Agreement is highly recommended. It defines ownership percentages, profit distribution, management structure, and procedures for adding/removing members.

Why you need it:
- Protects your limited liability status
- Prevents disputes between members
- Required by most banks to open a business account
💡 Pro Tip: Even if you're a single-member LLC, create an Operating Agreement. It strengthens the legal separation between you and your business.
Get an EIN (Employer Identification Number)

An EIN is like a Social Security number for your business. You need it to open a bank account, hire employees, and file taxes.

How to get it: Apply free online at the IRS website. Takes 10 minutes, receive immediately.

Cost: $0 (free from the IRS)

⚠️ Scam Alert: Third-party services charge $50-200 for EIN applications. Don't pay. The IRS does this for free.
Annual Reporting

Good news! Idaho does not require annual reports for LLCs, saving you time and money on ongoing compliance.

✓ Advantage: No annual report means less paperwork and lower ongoing costs compared to many other states.

Complete Cost Breakdown

Item	Cost	When Due
Certificate of Organization	$100	At filing
EIN (Federal Tax ID)	$0	Anytime
Registered Agent (if using service)	$100-300	Annual
TOTAL (First Year, DIY)	$100	—

Note: Optional costs like registered agent services ($100-300/year) and business licenses (varies by city/industry) are not included in the minimum total.

Timeline: How Long Does It Take?

Step	Time Required
Choose name and check availability	15 minutes
Complete Certificate of Organization	20-30 minutes
State processing	5-7 days
Create Operating Agreement	1-2 hours
Get EIN from IRS	10 minutes (instant online)
TOTAL	5-7 days (plus paperwork time)

Common Mistakes to Avoid

1. Skipping the Operating Agreement

Banks often won't open business accounts without one. Plus, it protects you in disputes and strengthens your liability protection.

2. Not Separating Personal and Business Finances

Open a dedicated business bank account immediately. Mixing personal and business funds can "pierce the corporate veil" and eliminate your liability protection.

3. Forgetting Ongoing Compliance

While Idaho doesn't require annual reports, you still need to maintain your LLC properly—keep records, file taxes, and maintain your registered agent.

4. Using Your Home Address as Registered Agent

Your registered agent address is public record. If you value privacy, consider using a professional registered agent service or a business address.

5. Paying Third-Party "EIN Services"

Scammers charge $50-200 to file for your EIN. The IRS does this for free at irs.gov. Never pay for an EIN.

Idaho LLC Tax Information

Idaho has a flat 5.8% state income tax. No franchise tax for LLCs.

Federal taxes: By default, LLCs are "pass-through" entities—profits pass through to your personal tax return. Single-member LLCs are taxed as sole proprietorships. Multi-member LLCs are taxed as partnerships. You can also elect S-corp or C-corp taxation if beneficial.

💡 Tax Tip: Consider consulting a CPA familiar with Idaho tax law. The right tax structure (default, S-corp, or C-corp election) can save you thousands annually.

Do You Need a Lawyer?

Short answer: No.

Forming a Idaho LLC is simple enough to do yourself. The forms are straightforward, and the Idaho Secretary of State website has instructions.

When you might want a lawyer:

Complex ownership structures (multiple members with different equity stakes)
High-risk industries (healthcare, finance, construction)
Significant startup capital or investor involvement
You want custom Operating Agreement provisions

Typical lawyer cost: $500-1,500 for LLC formation services.

Idaho LLC Checklist

Choose LLC name and verify availability
Appoint a registered agent with a physical Idaho address
File Certificate of Organization with $100 fee
Create an Operating Agreement
Apply for EIN with the IRS (free)
Open a business bank account
Obtain any required business licenses for your city/industry
Set up accounting to separate business and personal finances

Frequently Asked Questions

Can I form a Idaho LLC if I don't live in Idaho?

Yes. You can form a Idaho LLC from any state or country. However, you'll need a registered agent with a physical Idaho address.

How much does it cost to start an LLC in Idaho?

The state filing fee is $100. Add $0 for your EIN (free from IRS). If you use a professional registered agent, add $100-300/year. Total minimum DIY cost: $100.

How long does it take to form an LLC in Idaho?

State processing typically takes 5-7 days. The paperwork itself takes 1-2 hours to complete.

What's the difference between member-managed and manager-managed?

Member-managed: All LLC owners (members) make day-to-day decisions. Most common for small businesses.

Manager-managed: Members appoint one or more managers to run the business. Used when some members are passive investors.

Do I need a business license in Idaho?

It depends on your city and industry. After forming your LLC, check with your local clerk's office for required permits or licenses. Professional services may need state-level licensing.

Can I convert my sole proprietorship to an LLC?

Yes. Form a new LLC and transfer your business assets. Update your licenses, permits, contracts, and bank accounts with your new LLC name.

How is a Idaho LLC taxed?

Idaho has a flat 5.8% state income tax. No franchise tax for LLCs. At the federal level, LLCs are pass-through entities by default. You can elect S-corp or C-corp taxation if it's more beneficial.

What happens if I don't maintain my LLC?

While Idaho has minimal ongoing requirements, failing to maintain your registered agent or file required tax returns can lead to administrative dissolution.

Why Choose Idaho for Your LLC?

✓ Idaho LLC Advantages:

Filing fee: $100
Processing time: 5-7 days
Ongoing costs: No annual fees
No annual report requirement

Other State LLC Guides

Comparing states? Check out our other popular LLC guides:

Additional Resources

🎉 Ready to Start? You now have everything you need to form your Idaho LLC. The process is straightforward—just follow the steps above and you'll be up and running in 5-7 days.

Last updated: February 27, 2026
Information verified with Idaho Secretary of State and IRS guidelines. Contact the Idaho Secretary of State at (208) 334-2301 for the most current information.