Idaho Business Law Simple Steps In Setting Up An Idaho LLC
By Lane V. Erickson, Idaho Business Attorney
Choosing to set up your small business in Idaho through a limited liability company (LLC), is a wise decision. An LLC is designed to do two specific things that are extremely important for small business owners. First, it provides corporate protections for you through the corporate shield. This simply means that if the business has financial problems or other issues that arise that create liability, that liability doesn’t extend to the individual owners of the business. In other words, the individual owners’ property, which could include things like their homes, bank accounts, vehicles or other things are safe from the liabilities that come up in the business.
The second thing that an LLC does for a small business owner is provide flexibility in how the business is operated. Rather than following the required specific corporate formalities that are involved in a large corporation like General Electric, or Apple or General Motors, the management, and decisions that are made by the owners of an LLC can occur anyway the owners agree that they happen.
At the Racine law office, our team of Idaho business attorneys includes partners Lane Erickson and TJ Budge, and attorneys Nate Palmer and Dave Bagley. Our team of lawyers have the experience, skill, and knowledge, to provide sound legal advice to each of our business clients. Whether it is creating a small business, or working through the intricacies of negotiating contracts, or helping clients when something goes wrong, we have helped numerous Idaho LLC business owners make sound decisions that have helped their businesses succeed. We are confident we can help you too. If you are interested in discussing creating an LLC, please contact us for a free 30-minute consultation.
When it comes to creating an LLC in Idaho, the good news is that it’s not very difficult to do. However, if you’ve never done this before, you should seek out a qualified Idaho business attorney who can assist you in getting it done correctly. We’ve helped hundreds of business owners create an LLC as part of their business structure.
The purpose of this article is to describe in simple terms the steps that need to be done in order for an LLC to be created. As mentioned, it’s not a difficult process. The key is making sure that all the steps are completed so that the LLC can move forward with its business operations.File with the Idaho Secretary of State
The first step in creating an Idaho LLC is to determine the name that you will use for the business. The reason this is important is because you are required to register the LLC name with the Idaho Secretary of State’s office.
By registering the name, you have two specific assurances. The first is that no one else is already using that name as part of their business in Idaho. The second is that after you have registered the name, no one else can use the name you have chosen as part of their business operation. This means your business name will not infringe on some other business. It also means that no other business name can infringe upon yours.
To maintain the registration of your business name and of your LLC, all that you need to do is file an annual report every year close to the anniversary date of the registering of your business. The owner of the business will receive a notice from the Secretary of State’s office. With the information on this notice, the business owner can file the annual report electronically. Usually it takes about 10 minutes or so to complete the annual report. So long as the annual report is filed on time, the LLC remains registered, and the name continues to be reserved for your business.Obtain an EIN
Once your LLC has been registered with the Idaho Secretary of State’s office the next step is to have the ability to handle the business’ money and finances. In order to do this, the business has to have its own unique number from the IRS. This number is called an EIN, which stands for employer identification number.
Every LLC is required to get an EIN even if it will have no employees at all. Because of this, the term employer identification number is really a little misleading. There are thousands of businesses that have an EIN that have never had any employees. Don’t get hung up on this. I like to think of the EIN as the LLC’s social security number.
Once you have the EIN, you are able to handle all financial actions for the LLC. This includes opening bank accounts, obtaining business licenses, and taking care of all state and federal tax filings for the LLC. The EIN is also used with suppliers and lenders and when leasing property or equipment, and in many other types and kinds of business transactions.
Utilizing the services of a qualified Idaho business lawyer helps when it comes to getting an EIN. An experienced attorney can take care of this process in a relatively short time.Create an Operating Agreement
The final step in moving forward with an LLC is making sure that you have an operating agreement. This document is created by the owners of the business. It is a contract that is signed by all of the owners of the business. This contract controls who the owners are and the percentages of ownership of the LLC that each owner has. Additionally, the LLC provides specific instructions on who has management rights when it comes to making decisions for the operations of the LLC.
A well-crafted operating agreement should also have provisions allowing individuals to become new members of the LLC. Additionally, an operating agreement should have language in it about what happens when an owner dies, becomes divorced, becomes disabled, or simply decides they no longer want to be an owner in the business any longer.
When you have a well-qualified and experienced Idaho business lawyer helping you, setting up a new LLC is not difficult at all. The steps are relatively straightforward. We have helped numerous business owners create an LLC and we are confident that we can help you too.Enlist An Idaho Business Attorney To Help You
Our team of Idaho business lawyers can help you with any of your business structure or operation needs. Whether you are seeking to create a new business or review a current business, we are available to discuss your options and answer your questions at an initial free 30-minute consultation. Call us toll free at 877-232-6101 or 208-232-6101 for a free consultation. You can also email us directly at firstname.lastname@example.org or stop by our office at 201 East Center Street, Pocatello, Idaho 83201. We will answer your questions and help you solve your Idaho business problems.