How to Form an LLC in Idaho

by Michael Keenan
Operating as an LLC limits your liability for business debts.

Operating as an LLC limits your liability for business debts.

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A limited liability company structure keeps your personal assets safe from your business creditors. So, if your LLC gets sued, your personal assets can't be seized to pay judgments. To receive this benefit, however, you must register with the Idaho Secretary of State. The state requires only the Certificate of Organization to form an LLC, but it's a good idea to have an operating agreement if your company has more than one member. The operating agreement specifies the LLC's operations and financial management procedures.

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Step 1

Check the Idaho Secretary of State's Business Entity Search -- located on the Secretary of State's website -- to confirm your proposed business name isn't already taken. The name you choose must include the words Limited Liability Company, Limited Company or the abbreviation L.L.C., L.C. or LLC.

Step 2

Fill out the Idaho Certificate of Organization, Limited Liability Company, a form posted on the website. It requires the name and address of the LLC, the name and address of the registered agent and name and address of each of the members of the LLC. You also have the option to specify a future effective date, which can be up to 90 days after you submit the Certificate of Organization. A person authorized to act on behalf of the LLC, typically a member or manager, must sign the certificate. Only one signature is required.

Step 3

Submit the Certificate of Organization, Limited Liability Company in person or by mail, along with the filing fee, to the Idaho Secretary of State at Office.

Step 4

Submit a completed Form 8832 to the Internal Revenue Service to select how you want your business entity to be taxed; the form is available from the IRS's website. If you're the only member of the LLC, you choose between a disregarded entity and a corporation. If the LLC has multiple members, you chose between being taxed as a partnership or as a corporation. If you elect disregarded entity or partnership treatment, the income or losses pass through to your personal income tax return. If you choose to be taxed as a corporation, the company pays the corporate tax and you're taxed on the distributions to the company. Form 8832 must be signed by either each member of the LLC, or any officer, manager or member of the LLC authorized to make the election.

Step 5

Obtain, if necessary, the required license for your type of businesses. The Small Business Administration maintains a database of the different federal, state and local licenses and permits you may need to obtain.