Idaho Startup

If you're forming a Idaho startup but you're not sure what type of business is best for you, we can help. Our Idaho startup page has information on DBAs, LLCs, and corporations of all type (for-profit or nonprofit; foreign corporations and domestic).

Idaho DBA

Known elsewhere as a trade name or fictitious name, an Idaho DBA is called an Assumed Business Name. This type of business is the simplest type of business to form; the business is a legal and financial extension of its owner (called the sole proprietor), and the owner is personally liable for the debts and obligations of the business.

An Idaho DBA, unlike similar businesses in other states, is considered perpetual; it exists until the owner dissolves the business, and does not expire.

Incorporate in Idaho

If a business expects to have a large amount of capital tied up in inventory or take on significant risk, or if the owner simply does not want to risk exposure to a lawsuit, that business might incorporate in Idaho. Doing so provides limited liability protection to the owner or owners.

If the corporation will raise capital by selling shares, it will choose one of two types of tax classifications: C corporation or S corporation.

C Corporation

If the business will remain as a C corporation, it will experience "double-taxation"—that is, the corporate income is subject to both a corporate tax and an individual tax (once it has been distributed to shareholders and officers).

S Corporation

An S corporation, on the other hand, is a pass-through entity; it avoids double taxation by having no corporate income tax. However, it has other ownership limitations that a C corporation does not have.

Idaho Foreign Corporation

If a corporation that has already been registered in another state expands its business into Idaho, it must register as a foreign corporation first. To do so, it must submit a Certificate of Good Standing from its original state of incorporation, along with the Application for Certificate of Authority, to the Secretary of State.

Idaho LLC

An Idaho LLC is another type of business that provides limited liability to its owners; depending on the amount of owners (one or several), it has a few different tax classification options. Rather than issuing shares of stock, LLCs involve ownership percentages.

Idaho Nonprofit Corporation

A 501c3 nonprofit corporation is a specific type of nonprofit that is formed for purposes laid out in IRS Code 501c3: religious, literary, educational, scientific, and a few others.

To file as a 501c3 tax-exempt organization, a business must first register as an Idaho nonprofit corporation; then, once registered, the business must apply for 501c3 status from the IRS by sending in form 1023 along with its filed Articles, mission statement, and other supporting documentation.