How to Register a Sole Proprietorship in Idaho: A Step-by-Step Guide

In Idaho, registering a sole proprietorship is the initial step in creating a business. It is crucial to complete this correctly since it assures that your company is legitimate and adheres to state requirements. A step-by-step tutorial for registering a sole proprietorship in Idaho is provided below.

Step 1: Select a company name Your company name needs to be original and not in use by another company in Idaho. On the Idaho Secretary of State website, you can look up available company names. After selecting a name, you have 120 days to reserve it.

Step 2: Declare your company

You must submit a DBA (Doing Business As) form to the Idaho Secretary of State in order to register your business. This can be done by mail or online. A DBA must be filed for $25. You can begin operating under your selected name as soon as your DBA is granted.

Step 3: Acquire the required licenses and permits You might be required to seek licenses and permissions from state and municipal authorities depending on the type of business you are launching. Contacting the Idaho Department of Commerce will help you determine the licenses and permissions you require.

Obtaining an EIN (Employer Identification Number) is step four. An EIN is a distinct nine-digit number that serves as your company’s tax identification number. You might not require an EIN if your business is a sole proprietorship without any workers. However, you will require one if you intend to hire staff members or open a company bank account. On the IRS website, you can submit an EIN application.

There are a number of processes you must follow in order to dissolve an LLC legally in Idaho. A step-by-step tutorial for dissolving an LLC in Idaho can be found here.

File Articles of Dissolution as the first step You must submit Articles of Dissolution to the Idaho Secretary of State in order to dissolve your LLC. They can be submitted by mail or online. There is a $20 filing fee. Your LLC will be dissolved after your Articles of Dissolution are accepted.

Notify creditors and other interested parties in step two.

If your LLC dissolves, you must let your creditors and any interested parties know. Customers, vendors, and staff are all included in this. A notice of dissolution should also be printed in the neighborhood newspaper.

Step 3: Revoke Licenses and Permits

Revoke all licenses and permits that your LLC has with federal, state, or municipal governments.

Does My LLC Need an EIN?

For tax purposes, your firm is identified by a special nine-digit number called an EIN (Employer Identification Number). You might not require an EIN if your LLC has just one member and no workers. However, you will require one if you intend to hire staff members or open a company bank account. On the IRS website, you can submit an EIN application.

Why LegalZoom Should Not Be Used? Popular online legal document provider LegalZoom provides numerous business services, including LLC formation. However, there are a number of reasons why LegalZoom is not a good choice for you. First off, LegalZoom cannot give legal advice because it is not a law practice. This implies that you must retain legal counsel if you have any legal queries or worries. Second, LegalZoom’s service costs are rather exorbitant. By handling the paperwork yourself or hiring a local attorney, you can save money.

In conclusion, setting up a sole proprietorship in Idaho is a simple procedure that includes selecting a business name, registering your company, collecting all required licenses and permits, and, if required, obtaining an EIN. Articles of Dissolution must be filed, creditors and other interested parties must be notified, licenses and permissions must be revoked, and final tax returns must be filed in order to dissolve an LLC in Idaho. The use of services like LegalZoom, which might not be able to satisfy your individual demands, should be avoided and only used when absolutely essential.