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I operate an LLC in Wyoming, but my local business banking options have high fees. An Idaho bank offers free business checking and is within a reasonable driving distance for the rare occasions I'd have to appear in person (probably less than once a year).

My business is online technical consulting, conducted entirely within Wyoming. My clients are in several other states, but not Idaho.

I tried to open an account with the Idaho bank, and they asked me to file with the Idaho Secretary of State (without specifying exactly what to file). I assume they mean a foreign registration statement.

Since it's an LLC, the only taxes are via members' personal income taxes. None of the members file personal income taxes in Idaho, though. Will filing a foreign registration statement in Idaho and having a bank account there cause any Idaho tax implications?

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The bank in Idaho requires you to "register" your company with the state of Idaho. In most states, the process of registering an LLC in a state requires paying an annual fee and filing annual paperwork. I don't know if registration is a requirement of this particular bank or the state of Idaho, but either way it is a nuisance for a small company to have to pay annual fees and do annual paperwork in two states (Idaho and Wyoming).

I don't think having a bank in Idaho would create any tax obligations, but I'm not a tax expert and I don't know anything about Idaho law.

I recommend one of the following:

  • Find a Wyoming bank with lower fees.
  • Find an Idaho bank that doesn't require you to register with the state.
  • Use an online-only bank. For my latest business, I opened an account with an online-only bank called Azlo, and it does everything I need without any fees.
  • I marked my own answer as correct b/c it answers the specific question, but your recommendation of Azlo was helpful! – bendodge Jul 18 at 16:01
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The bank said I need to file a "Foreign Registration Statement (Limited Liability Company)" in order to comply with the bank's membership guidelines, and the Idaho State Tax Commission said in response to my emailed query:

As long as you don’t have any Idaho source income, you don’t have an Idaho filing requirement or tax liability. Just having an Idaho based bank account doesn’t trigger an Idaho tax liability.

I'm sure that whatever they say via email isn't binding in court, but it seems like a clear answer.

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