A limited liability company protects business owners from personal liability for business debts and claims.The Idaho Uniform Liability Company Act allows you to form an limited liability company in the state.
Step 1: Pick the name of the company.
You have to choose a name that isn't used.The name of your company can be checked to make sure it isn't being used with the search tool.One of the following terms must be in the name of your company.L.L.C is a limited company."LC" stands for "LLC."
Step 2: Pick out the members of your company.
The owners are referred to as members.They're the people who have a financial interest in the company that goes beyond the interests of an employee or customer.It's not limited to people.Members can include partnerships, corporations, trusts, estates, or other entities.
Step 3: There is a manager for the company.
A CEO of the company is a manager.The person who will set the strategic direction of the company and oversee day-to-day operations from an upper management perspective is the one.It is possible to have a member-managed company.Business operations are managed by the members of the LLC.It's a great option for single-member limited liability companies.You can set up a management company.While you act as a passive investor, you'll hire someone else to manage the manage.
Step 4: An operating agreement can be created.
The economic and governance structure of your company is covered in an operating agreement.It's like having shareholder agreements wrapped into a single document.A statement of social purpose is possible.
Step 5: A registered agent can be selected.
A legal representative for the business is a registered agent.If you live in Idaho, you can be the registered agent.You will need someone else to be a registered agent on your behalf.You can find a list of registered agents in Idaho by using the internet.There is a fee associated with using a representation service.Before you can list another party as your registered agent, you have to get the consent of representation.
Step 6: You can visit the Idaho Secretary of State's website.
You can fill out the online form at the Secretary of State's site.
Step 7: The form should be printed out.
Idaho doesn't allow you to fill out the form online.The form needs to be printed out and filled out with a pen.
Step 8: You have to provide the required information on the form.
Information on the form is easy to understand.You might delay the process if you don't fill it out completely.Instructions about what information is required for each section are included in the form.The name of the company has to follow the specifications.
Step 9: You have to pay the filing fee.
You have to write a check for the fee.That's $100 as of this writing.
Step 10: Send the form to the Secretary of State.
The Secretary of State's address is located at the bottom of the instructions.You should include your payment when you mail it in.
Step 11: You have to apply for an EIN Number.
There is a separate legal entity for your business.It will need to have its own tax ID.You have to apply for a EIN Number from the IRS.You don't need an EIN if you own and operate a sole member limited liability company.
Step 12: Determine your tax obligations.
There are many taxes associated with running a business in Idaho.Your income is taxed at 7.4% in Idaho.You will be subject to local property taxes if you own real estate.The assessed value of the property is used to set property taxes.If you have employees, you need to pay payroll taxes at both the state and federal level.If you want to keep state taxes from your employees, you need to fill out an IBR.Information about how to pay federal payroll taxes is provided by the IRS.
Step 13: There is a budget for the regulatory environment.
To satisfy certain regulatory requirements, you'll need to spend money.It's important to account for that in your budget.There is a minimum wage in Idaho.If you have only one employee, Idaho state law requires you to have workers' compensation insurance.It protects your employees if they get hurt on the job.Understand the regulatory requirements for your business model and how they will affect your bottom line.
Step 14: You can open a business account.
If you want to track business expenses and income, you need a separate bank account.To open a business account, you'll need your EIN and a certificate of organization.