Are you a qualified professional, rendering services in industries, such as medicine, law, engineering, or psychology and looking to create a PLLC in Idaho? If so, you’re in luck!
Further down, we will answer all the popular questions, such as how to form a PLLC in Idaho, what practices are considered “professional service”, and what other tasks need to be done after the company is created so you can save yourself a lot of hassle.
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So, how to start a PLLC in Idaho for a professional? In general, the process is much simpler than most people think, but, as mentioned earlier, you’ll need to sort your business license first, which can take a bit of time.
What’s important to note is that if your PLLC has a few employees, each of them will need to have a license, plus, depending on your profession, you may also need to get approval from the licensing authorities of the state.
Whether you need this approval or not, these are all the things that should be checked before setting up a PLLC in Idaho to avoid any legal issues. Once this is done, you can move on to other steps.
Now you can actually get down to forming a PLLC, and the first step is to create your company’s name. This is the name you’re going to use quite a lot when running your PLLC, so it’s important that it sounds great and reflects what your business is about.
Aside from the aspect of likeability, there are a few other requirements for the company’s name to consider. Here are the most important of them:
It may happen that you are still halfway through learning how to get a PLLC in Idaho, but the company name is already on your mind and luckily, it is still available. In this case, it’s best to reserve it.
In Idaho, everyone can put a chosen name on hold for up to 120 days by filing the Application for a Reservation form, which should give them enough time to finish whatever is needed before they’re ready to form a PLLC.
The basic filing fee is only $20, and if you choose a non-electronic form, you will need to pay an additional $20.
Once you have chosen your business name, it’s time to hire a registered agent. The presence of a registered agent is a state requirement that applies to any form of business entity and, therefore, cannot be overlooked.
What is a registered agent, though? Simply put, it is an official representative of the company that serves as a point of contact for communication with the state authorities, accepting and processing documents on its behalf.
A resident agent (as it’s also known) can be a company or an individual that has a physical street address in the state and is at least 18 years old. Plus, it’s vital that an RA is available during business hours to timely process correspondence.
This means you have a wide range of options for who you can hire:
As just mentioned, nothing stops you from serving as your own resident agent in Idaho, which can help reduce PLLC formation costs. However, in most cases, it’s much better to trust this job to a professional and have peace of mind that your PLLC is in reliable hands.
Just so that you can make the right move, here are the advantages of hiring a professional RA:
Other than that, resident agents can help with preparing and filing documents and ensure safe online document storage, making them a real savior for busy PLLCs.
Now that you have a business name and an agent for service of process, you can finally submit your Certificate of Organization form. This document, known as Articles of Organizations in some other states, proves the fact of a PLLC registration.
The information that should be included in this form is as follows:
Once this form is approved by the Secretary of State, you officially become an owner of a PLLC in ID.
The fee for submitting the form online is $100, plus $20 for manual processing. And the filling time may take from 7 to 15 business days.
Unlike a Certificate of Organization, having an operating agreement isn’t mandatory, but quite useful nevertheless. Essentially, this document outlines the internal rules of your company and helps settle any disputes should those arise in the course of time.
On top of that, you may be required to show your operating agreement when applying for a loan. Though not mandatory, this document is legally binding, making it suitable for use by various institutions and for various business-related functions.
Finally, a well-written operating agreement with clearly defined goals and rules can help your PLLC get noticed by new partners and investors and effectively get more people on board.
Not every business needs an Employment Identification Number (EIN), but if you have employees, have more than one member, and/or want to have a separate bank account to keep your personal assets secure, you will want to get it indeed.
To get an EIN, you can apply online through the IRS, which is completely free.
Truth be told, there’s not much difference between the professional limited liability company and the limited liability company in Idaho.
In fact, the structure of these two business entity types is pretty much the same, except that the former is created for rendering professional services, while the latter can be formed to run any other business activity that is not forbidden by the state.
Another distinction between the two is that PLLCs are required to have a license in order to legally run a business. This license, though, can be easily obtained by applying with a regulatory or licensing agency, depending on the location of your business and activity.
To elaborate, here’s a list of professions that qualify as “professional service” and can start a PLLC in Idaho:
By and large, the cost of an Idaho PLLC is made up of the same expenses as an LLC in ID, except that you also have a business license to pay for. Generally speaking, there are two types of costs:
To get an idea of the PLLC cost in Idaho, have a look at the chart below:
|Business License||May vary depending on the industry|
|Certificate of Organization||$100 + $20 for manual processing|
|Registered agent fee||$0 to $300 per year|
|Name reservation fee (optional)||$20|
|Annual reports fee||$0|
|Certified copies of documents||$16 each|
|Articles of Amendments (optional)||$30 + $20 for manual processing|
|Articles of Dissolution fee (optional)||$20 + $20 for manual processing|
Filing a DBA (which stands for Doing Business As name) is not mandatory, but some businesses may want to do it if they, for example, want to run their company under their real name.
While filing a DBA isn’t required, you will have to pay to renew your business license from time to time, so this cost should be factored in when planning your PLLC expenses.
In general, however, in Idaho, a business license can be renewed online, and the renewal fee will be the same as the original one.
Now when you have your Certificate of Organization signed and delivered, you can pat yourself on the back, as you’ve now officially become a business owner of a professional liability limited company. However, this doesn’t mean it’s time to relax.
To not only get started on the right foot but also ensure the success of your business, there are a few more things you need to take care of. Further down, we will walk you through some of the other steps you need to take right after starting PLLC in Idaho.
One of the main reasons for setting up PLLCs in the first place is that they offer the benefit of the protection of your personal assets. However, it is only relevant when the distinction between your personal assets and business gains is evident.
With that in mind, it’s highly advised to open a separate business account. By doing so, you will be able to keep track of all your business-related transactions, and it’ll be much easier to understand filing taxes.
In Idaho, you can open a business account with any bank of your choice by providing your EIN number and Certificate of Organization.
Running a business is quite a strenuous task and having to manage your finances on top of everything else can be quite overwhelming even for experienced business owners. The thing is, you don’t have to do all the work yourself.
In fact, even those with a background in finance prefer to enlist financial management to professional accounts who ensure the job is done, wages are paid, and your books of accounts are kept in good order.
As a result, you have less to worry about and focus on things that matter the most. Besides, an accountant can assist with the following:
This will make it easier to process paperwork.
Unlike some other states, in Idaho, every company that has at least one employee (members of a PLLC count) is required to acquire workers’ compensation insurance. This insurance covers any expenses related to bodily injuries from job-related accidents, etc.
Aside from that, you may also want to obtain general liability insurance and some industry-specific permits. Though not mandatory, they can help protect your business against any claims made in connection with your PLLC.
Not dissimilar to most other states in the US, any LLC or PLLC is required to keep the current business information up to date with the Secretary of State by filing annual reports. This can be done online through the official SOSBiz website for free.
If you fail to file your annual reports by the end of the year from the date your PLLC was formed, it’s within the state’s right to dissolve your company. And if this happens, you’ll need to pay a Reinstatement fee.
Another type of report that a PLLC is needed to update with the Secretary of State is an income tax return. As the name suggests, this is a statement of the income that you’ve managed to make from your business.
Please note that even if you don’t make any profits or lose money, you also need to report it.