LLC Annual Report and Tax Filing Requirements in Idaho

A limited liability company (LLC) is a business structure with many advantages. An LLC provides limited liability to owners and flexible tax and management structures. However, to maintain an LLC, you'll need to keep up with your state's reporting and tax requirements.

This article covers the most important ongoing reporting and state tax filing requirements for Idaho LLCs. (If you need information about other states' LLC requirements, take a look at our article on LLC tax and filing requirements.)

Idaho LLC Annual Report

The State of Idaho requires you to file an annual report for your LLC with the Idaho Secretary of State (SOS). You can file the annual report online using the SOSbiz online filing system. You'll need to create an account if you haven't already.

The annual report is due every year by the last day of the LLC's anniversary month. For example, if you created your LLC on September 9, then your report would be due by September 30. As of 2023, there's no filing fee to submit your report.

State Business Taxes in Idaho

When it comes to income taxes, most LLCs are considered "pass-through tax entities." Specifically, multi-member LLCs are considered partnerships, and single-member LLCs are considered disregarded entities. For pass-through entities, the responsibility for paying federal income taxes passes through the LLC itself and falls on the individual LLC members. So, the LLC itself doesn't pay income tax. Instead, the members report and pay taxes on their share of the LLC's income through their personal tax returns.

You'll need to file and pay taxes to the Idaho State Tax Commission (STC). You can use the Taxpayer Access Point (TAP) to file and pay your taxes online.

In general, LLCs taxed as partnerships whose members are at least part-year Idaho residents must file:

• Form PTE-12, and
• Form ID-K1.

If you have any LLC members who aren't residents of Ohio and who make at least $1,000 in income every year, then your LLC must do one of the three options:

• The nonresident owner can file Form PTE-NROA, Idaho Nonresident Owner Agreement.
• The LLC files a composite return where the LLC pays income tax on behalf of the nonresident owners at the corporate tax rate.
• The LLC withholds Idaho income tax for the nonresident owners at the highest individual tax rate.

Idaho's affected business entity (ABE) election. Idaho LLCs—along with S corporations and other pass-through entities—can pay income tax at the corporate rate. In this case, each owner then receives a credit against their state income tax from the corporate tax the LLC has already paid. You must make the election every year that you wish your LLC to be taxed at the corporate rate.

Electing corporate tax status. While LLCs are taxed as partnerships by default, you can choose to have your LLC taxed as a corporation for federal tax purposes. You can make this corporate tax election by filing IRS Form 2553 with the IRS. If you elect to have your LLC taxed as a corporation at the federal level, your LLC will also be taxed as a corporation in Idaho. As of 2023, the corporate income tax in Idaho is a flat 6% rate. For more about corporate taxation, check out the income tax for corporations section of the STC website.

For more instructions and detailed guidance, see the STC's pass-through entities webpage.

The taxes that your LLC can owe and the elections that you can make can often get complicated. If your LLC has nonresident owners or you're not sure about which taxes to file, talk to an Idaho tax attorney or professional. They can make sure you're complying with federal and state tax laws.

Idaho Employer Taxes

If your LLC has employees or plans to, you must pay employer taxes to the federal and state governments. You should get your federal employer identification number (EIN) from the IRS to report and pay these taxes as an employer.

Withholding employee wages. If you're an Idaho employer, you must withhold and pay employee income taxes to the STC. Begin by registering your business with the STC online using the Idaho Business Registration System (IBR). You'll need to specifically register for an Idaho withholding account. After registering, you must file Form 910 and pay withholding taxes periodically—either semimonthly, monthly, quarterly, or annually. Your filing frequency depends on how much income your LLC withholds. You'll also need to file Form 967 each year to reconcile your LLC's tax withholding. Visit the withholding section of the STC website for more on when and how to file this tax.

Unemployment insurance (UI) tax. If you have employees or have paid wages, you'll probably need to register to pay state UI taxes to the Idaho Department of Labor (DOL). Register for a UI tax account through the IBR System. Each quarter, you must submit quarterly UI tax reports and make payments to the DOL. You can submit reports and make payments using the iUS Employer Portal.

Idaho Sales and Use Tax

If your LLC will sell taxable goods or services to customers in Idaho, you must collect and pay sales tax to the STC. You'll need to register for a seller's permit using the IBR System.

After you've registered, you must submit sales tax returns on a monthly, quarterly, annual, or semiannual basis. You can file and pay your sales tax online through TAP. You can also mail or deliver the customized Form 850 you received from the STC.

Visit the sales and use section of the STC website to learn more.

LLC Registration in Other States

Sometimes owners will form a company in one state but do business in another state. If you organized your LLC in Idaho but have business activities outside the state, you could need to register your LLC with some or all of the states where you do business.

Each state has requirements for when a company must register or qualify as an out-of-state (foreign) business. However, in general, you probably need to register as an out-of-state LLC if you have a physical presence in a state, hire employees in the state, or advertise directly to residents of the state.

To learn more about individual state requirements, check out our state guide to qualifying to do business outside your state.

More Information About Idaho LLCs

You can find useful information on how to form and manage your LLC on the SOS and STC websites. If you want more general guidance related to managing and running your LLC, you can read the articles in the LLC section of our website. If you'd like professional guidance, talk to an Idaho business lawyer. A local attorney can help you determine which forms your LLC needs to file with the SOS, STC, and other state departments and agencies.