Certain licensed professionals in Idaho can form an Idaho professional limited liability company (PLLC). There are multiple steps to creating a PLLC and checking that it complies with state requirements. Let’s walk through how to set up a PLLC in Idaho.
An Idaho PLLC is a special type of business structure for licensed individuals providing one or more professional services. All members of a PLLC must have a professional license for the services the PLLC offers. The business can provide one or more “allied professional services,” as long as the combination of services isn’t prohibited by the profession’s regulating authority. Allied professional services are those that are frequently offered together because they’re so related in substance.
A PLLC provides liability protection to its members, meaning their personal assets are protected from lawsuits filed against the PLLC or debts owed by the PLLC. However, a member is personally liable for his or her own professional malpractice or the malpractice of a subordinate.
Any person licensed in one of the following professions can form an Idaho PLLC:
All members of the PLLC must have the proper Idaho professional license to practice.
Your PLLC’s name needs to meet Idaho’s naming requirements. By law, the name of your PLLC must include one of the following:
When choosing a name, you need to check that it’s available for use. With our name reservation service, we will do the research for you by checking to see if any other business is using your preferred name. We can also reserve the name while you prepare your filing paperwork.
To give your business an online presence, you may also consider a domain name for your PLLC. We offer domain registration services and can secure your unique domain name for future use.
A registered agent is a person or entity who accepts legal documents on behalf of your PLLC. In Idaho, a registered agent can be either an individual, including yourself, or an entity that is registered to do business in Idaho.
Your registered agent must have a physical address in Idaho and be available to accept legal documents (such as subpoenas) during regular business hours.
ZenBusiness can help your PLLC find a registered agent in Idaho. With our registered agent services, we can help you meet all Idaho’s requirements.
Any qualifying professional acting on behalf of the PLLC as the organizer can file the Articles of Organization with the state. Idaho calls these organizing documents a Certificate of Organization, and they must be filed with the Secretary of State.
The Certificate of Organization for an Idaho PLLC needs to include the following information:
It’s important to decide the type of management structure of your PLLC. With a manager-managed PLLC, one or more persons are designated to make the business decisions. In a member-managed PLLC, all the members participate in managing the business.
An operating agreement is a key business document that outlines the operations and management of a company and the obligations and responsibilities of the members. Idaho doesn’t require PLLCs to file an operating agreement, but it’s a good idea to create one.
You can draft your own agreement, hire an attorney to write one, or use a template.
To meet your federal tax filing obligations, your PLLC needs an employer identification number (EIN). An EIN is similar to a social security number but for your business. To hire employees or open a business bank account, you need an EIN. You can apply for one yourself through the IRS or, you can use our EIN services and we will get one for you.
Any entity registered to do business in Idaho must file an income tax return with the state. Your PLLC may be subject to a number of different state taxes, such as unemployment insurance tax. Visit the Idaho State Tax Commission to learn more about which taxes your PLLC may owe.
For any local tax requirements and obligations, it’s best to contact the local tax authority where your business operates.
To operate an Idaho PLLC, you may need certain business licenses and permits. Licensing can be on the federal, state, and/or local level, so it’s your responsibility to know and obtain all that apply.
There may also be industry-specific licenses and permits, so contact the regulatory authority for your profession. Visit Idaho’s Division of Occupational and Professional Licenses for more information.
With our business license service, our partners at Avalara, can do the research for you and compile a list of any licensing and permit requirements there may be on all government levels.
If your Idaho PLLC has employees, it will need workers’ compensation insurance. There is an exemption, however, for limited liability companies (LLC), which includes PLLCs. When an LLC employs a working member of the LLC, the state doesn’t require workers’ compensation insurance for that employee.
Most general business insurance and professional liability insurance, such as medical malpractice insurance, are optional. But to protect your business and yourself, you may want to consider getting either or both types of insurance.
The IRS recommends that all small businesses have a business bank account. This helps to keep your personal and business finances separate and makes tax filing time much easier.
To open a bank account for your PLLC, you need an EIN.
For licensed professionals who want to start a business in Idaho, a PLLC may be a great option. At ZenBusiness, we provide many services that can help you run and grow your Idaho PLLC today. Let’s get started together.
You can find the current Idaho PLLC filing fees on sos.idaho.gov. Although you can file by mail, it’s cheaper to use electronic filing. The typical turnaround time for processing documents is 7 to 10 business days. You can request expedited service for an additional fee.
No, you can form an Idaho PLLC without a lawyer. If you choose to form your PLLC by yourself, ZenBusiness is here to help you along the way with the following services:
Reserving a business name
Appointing a registered agent
Applying for an EIN
Securing a business domain name
With our partners at Avalara, we can also research and report any federal, state, local, and industry-specific licenses and permits your business needs.
Yes, Idaho calls it a professional service corporation.
As long as the rules and regulations of the specific professions don’t prohibit the combination of professional services, then multiple services can be offered together.
PLLCs in Idaho are taxed like other limited liability companies and enjoy the benefit of pass-through taxation. Pass-through taxation is where business income passes through to the members and is subject to tax only once when reported on each member’s income tax return. As with other LLCs, you can also elect to be taxed as a C corporation or an S corporation.
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
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