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How to Start a Business in Idaho — Checklist Download
Download our free PDF checklist to help you stay on track when starting your business in Idaho.
Download NowHow to Start a Business in Idaho:
Registering a business in Idaho is a very simple process. Business owners will need to choose a legal structure and a business name before filing the appropriate articles. They can then file for all the necessary state taxes on a single platform. Business owners can find out what licenses and permits they need from the Business Wizard platform.
Form your business.
Review Idaho formation options.
Idaho offers four ways of forming your business, which we have covered in detail below. Review these closely and pick the one that fits your business best.
Name your business.
The business name should reflect your business brand and capture your spirit. Make a list of the names you like and perform a Google search to find any conflicts with other Idaho business names.
If you need help finding a business name, be sure to check out NameSnack's free business name generator.
Do a trademark search to ensure the business name you chose has not already been trademarked. You can perform the trademark search at the U.S. Patent and Trademark Office and the Trademark Electronic Search System. These databases have a comprehensive list of business names that are registered together with their classification.
Check the Idaho Secretary of State website to ensure your business name is not the same or similar to another corporation registered in Idaho.
If your business name is available you can then register it on the U.S. Patent and Trademark Office website.
Once you have found a suitable name make sure to register the matching web domain and social media handles should you wish to market your business online.
Sole proprietorships and partnerships must also file an Assumed Business Name by downloading and completing the required form. You can find instructions for completing and mailing the form to the Secretary of State on the last page of the download. A filing fee of $45.00 must be enclosed with your completed form.
Assumed Business Name certificates can also be filed online for $25.00 by clicking on the appropriate form here and creating a New SOSBiz! account.
Get an Employer Identification Number.
Nearly all businesses will need to register for federal taxes by applying for an Employer Identification Number.
Register your business in Idaho.
LLCs, corporations, and partnerships must register their business with the Idaho Secretary of State's office. While the business names for LLCs and corporations will be registered as part of the entity registration, partnerships must file a BDA in addition to their entity registration.
The Idaho Business Wizard is a free service offered to anyone seeking to start a small business in Idaho and is maintained by the Idaho Small Business Development Center. You can use the Idaho Business Wizard to guide you along your journey of starting a business in Idaho.
Download the relevant form here.
Complete the form according to the instructions on the second page of the download. All forms must be typed out then printed.
Enclose the appropriate fee. You can find the amount at the top of the first page and at the bottom of the second page of the downloaded application form.
Mail or deliver the printed form and the fee to the Secretary of State's office.
You may also choose to register your business entity online here. Click on the required form and then click on "File Online." You will first need to create a New SOSBiz! account before completing your online registration.
Obtain the necessary permits and licenses.
The state of Idaho does not require all businesses to have a business license. Typically, it is professional businesses, such as doctors and accountants, that will need a state business or professional license. You can use the Idaho Business Wizard to check if your business requires any licenses or permits.
Some cities in Idaho require businesses to have a city business license. You will need to check if you require one with your city clerk’s office. If your business is located outside the city you will need to check with the county clerk’s office.
To check which licenses and permits your business will need, go to business.idaho.gov and click on the blue "Business Wizard" button.
Answer the four questions about your business, confirm your answers, and click "Go."
The Business Wizard will generate a list of all the licenses and permits that you will require for your business along with links to the relevant forms or publications.
Register your business for taxes.
Register for state taxes.
Businesses that sell goods and/or have employees must register for certain state taxes. This can be done through the Idaho State Tax Commission's website.
On the State Tax Commission webpage, click on the Idaho Business Registration (IBR) application link.
Carefully read through the given information, then click on "I am ready to register my new business."
Make sure that you have all the information you need, then click on "I have the required information and am ready to proceed."
Create a new account and complete your registration.
Through this process, you can also register for sales and use tax, employer withholding tax, unemployment insurance tax, and workers' compensation.
Register for sales and use tax.
If you are selling any products and/or offering specific types of services, you will require an Idaho Sales and Use tax permit from the Idaho State Tax Commission. You will have the option to register for a sales and use tax when filling out your IBR application, as shown above.
Read through Idaho's different tax types on the State Tax Commission website for more information.
Hire employees.
Report all new hires.
All newly hired and rehired employees must be reported to the Idaho Department of Labor within 20 days of the date of hire.
Send an email to newhire@labor.idaho.gov to request a login password for the New Hire Directory and report your new hires online.
Alternatively, download the New Hire Hire Reporting form and mail or fax the completed form to the New Hire Reporting division of the Idaho Department of Labor.
You can find the Department of Labor's address and fax number on their webpage.
Register for workers' compensation and unemployment insurance.
When filling out the IBR application form, you can register with the Idaho State Tax Commission, Idaho Department of Labor, and Idaho Industrial Commission simultaneously.
The Idaho Industrial Commission administers the Workers’ Compensation Act. It requires any employer in Idaho to provide workers’ compensation coverage to employees working in Idaho. These employees can either be full-time, part-time, seasonal, or occasional unless specifically exempt by law.
The Idaho unemployment insurance program is designed to provide temporary economic benefits to eligible workers.
Health insurance isn’t a requirement for small businesses in Idaho.
Put up the required posters.
If you employ workers, you will need to display mandatory state and federal notices and posters. You can download all the required posters for free from the Department of Labor.
Idaho Business Types:
1. Sole proprietorship.
Sole proprietorships are simple business structures and usually involve one individual who is solely responsible for the enterprise and subject to unlimited personal liability for any business debts. Sole proprietorships are created by an individual operating a business under their own name or by filing an Assumed Business Name.
2. Partnership.
Idaho offers three basic partnership options: general, limited, and limited liability. General partnerships are one of Idaho's simplest business structures where all partnerships work towards the common goal of making and sharing profits. The owners are usually only taxed once and must file a Statement of Partnership Authority.
Limited partnerships usually involve one or more general partners and one or more limited partners. The limited partners are not normally subject to personal liability for the business. Limited partnerships must file a Certificate of Limited Partnership.
All the partners in a limited liability partnership hold personal liability protection and are taxed like general partnerships. The owners must file a Statement of Qualification of Limited Liability Partnership.
3. Corporation.
Corporations are standalone entities that provide the owners with personal liability protection. Corporations are usually not the best option for a startup as they require shareholders, a board of directors, annual shareholder meetings, a large amount of documentation, and double taxation. Corporations must file Articles of Incorporation.
4. Limited Liability Company (LLC).
LLCs are a hybrid form of partnership that allows the owners to benefit from both the corporation and partnership structure of a business. For tax purposes, LLCs may be disregarded, taxed like a partnership, or taxed like a corporation.
LLCs are regulated by Idaho state laws and must be registered by filing the Articles of Organization with the Idaho Secretary of State. LLCs in Idaho cost $100 to file.
Idaho Formation and Registration Fees:
Fee Type | Costs* |
|---|---|
LLC Articles of Organization | $100.00 |
Professional LLC Articles of Organization | $100.00 |
Articles of Incorporation (For Profit) | $100.00 |
Articles of Incorporation (Nonprofit) | $30.00 |
Statement of Partnership Authority (General Partnership) | $100.00 |
Certificate of Limited Partnership | $100.00 |
Statement of Qualification of Limited Liability Partnership | $100.00 |
Certificate of Assumed Business Name | $25.00 |
*Add $20.00 for manual processing.
