Corporation Frequently Asked Questions (FAQs)
What do I need to start an Idaho corporation?
You need to file articles of incorporation with the state of Idaho.
Do I need an attorney to form a corporation?
No, you can prepare and file your articles of incorporation yourself, or you can hire us to do it for you by filling out the proper forms. If you are unsure if you need to be incorporated, or what kind of corporation you should have, you should consult an attorney and/or an accountant and/or read some of our great, extensive information on corporations and LLCs. A lot of the filings we do are for attorneys hiring us to do the paperwork for their clients.
I don’t understand what I need to do with the shares?
A corporation has to authorize shares. They can be as many or as little as you want. There has to be at least one share. You can buy pre-printed forms to print your company information on a physical share, or you can have records indicating how many shares the company has authorized and who has them issued, without actually printing physical shares. The total number of shares you authorize in the initial articles of incorporation are the number of shares you can give the shareholders. Most people create 100-1000 shares to start and issue half of the shares. The transaction of a shareholder giving money to the corporation in exchange for shares is how the corporation is funded and how the shareholders are documented. This is all documented internally, and not filed with State of Idaho.
What does par value of each share mean?
Most people use $1 or $0.01. This is not an actual representation of what the company is worth. If you have a public company, your share price is set by what price people buy and sell it in the stock market. If you have a privately held company your share price is set by the company’s shareholders. Shares cannot be sold for less than their par value. That is the only real meaning of a par value of a share. If your par value is $1, you have to get more than 1 dollar if you sell the share to someone. It’s of very little importance for most corporations in Idaho what the par value actually is.
How many people do I need to start a corporation?
Only one. You can act as the president, secretary, treasurer, and whatever else you want to act as.
Do I need to tell the state of Idaho all the directors’ names?
No. If you use us to organize your Idaho corporation, we are the organizer, and sign the documents that way on your behalf. If you want, we can list the directors, but we don’t have to initially. You will have to on your annual report though.
What is a BOI report?
You must file a BOI report for your corporation with the Financial Crimes Enforcement Network (FinCEN). In this report, you’ll have to provide information about your corporation, as well as your corporation’s beneficial owners and company applicant. (BOI stants for Beneficial Ownership Information.) This include’s your corporation’s legal name (as well as any DBAs), address and jurisdiction of formation, and federal tax ID number. For your beneficial owners and company applicant, you must provide:
- Full legal name
- Date of birth
- Residential address
- Photo ID
This report is mandatory and must be filed within 30 days of formation. (Although companies formed before January 1, 2024 have until 2025, and do NOT need to include a company applicant.) While some corporations in highly regulated industries (like finance) may be exempt, the vast majority of corporations are not exempt and must file a BOI report. The information provided will NOT be made part of the public record.
What’s the difference between a beneficial owner and a company applicant?
Information for both your corporation’s beneficial owners and one or two company applicants must be provided when filing your BOI report. Here’s how they differ:
- Beneficial Owner: This is anyone with substantial control over your corporation, like a director, a board member, a CEO, or someone with at least 25% of your corporate stock shares.
- Company Applicant: This is the person who filed incorporation documents for your company, and/or the person who directed these documents to be filed. If these two people are different you should list two company applicants, but if this is the same person you only need to list one company applicant.
How soon do I get my documents?
The State gets our paperwork the same day you hire us. If you use their rush service (the expedited option) for $40 extra, they will have your documents filed in 1 business day. Without the rush service, it takes about 8 days for them to file the paperwork for domestic corporations. When you hire us to form your corporation, we submit your documents online and get the filing back very quickly from the State of Idaho.
Do I keep getting bills from you?
If you use our registered agent services to keep your privacy and personal information from being public, you will get a bill for $49 each year. You can cancel at any time. Our fee is half that of our next cheapest competitor.
Is the annual registered agent fee a year from time of service, or calendar year?
It is one year from the time you hire us. Your annual report will be due one year from the time your paperwork is filed, so you can get everything taken care of at one time.