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How do I find out what I need to do to legally operate a
business in Idaho?
Your best bet is to go through the Business Wizard on this
site. It will ask you five questions about your business and then provide you
with a checklist of the
agencies you need to contact, the reason you need to contact them, and
provide a hot link to the agency's Web site. As you visit the Web site or contact
the agencies, you will learn about their
specific requirements.
Also visit the Legal
Structure/DBAs section of this site for help in choosing and
registering a business
entity form.
I don’t know where to start. I have never been in
business before. Who can help me?
Click on the Business Assistance
button to the left. Under
Business Formation and Expansion you will see links to the Small Business
Administration and the Idaho Small Business Development Center. Both organizations work
with start-ups. Click on the link for either of these organizations to
find a location near you, then contact them to make an appointment for a
free consulting
session.
I have heard that having employees is a very tricky
business. How do I cover all my bases?
First, click on the Employer Issues button
to the left and review the
information there. Then, click on the Employee or Independent Contractor
button on that page and review the information. You can have legal problems if
you classify a worker in the wrong category. Next, go through the Business
Wizard and under Question 3 select either "Employees" or "Both"
(Employees and Independent Contractors). The resulting Checklist will give you contacts for
the agencies that regulate employment issues. Contact them to learn what
you must do to comply with their requirements.
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What kind of licenses do I need to do business in Idaho?
It depends on your type of business; not all business
activities need a license. To find out if your business needs one, click on the Licenses
button to the left and review the information there. Then, go through the Business
Wizard, and in Section 2, check all the items that may apply to your
business. At the end of the Wizard you will get a Checklist that tells you
which agencies license each activity. If your business's primary activity
doesn't appear in Section 2, then you may not need a special license.
However, depending on your business, you may still be licensed at the local (city and county),
and/or federal level. Your employees may also need individual
licenses depending on your business activities.
Some cities in Idaho require that businesses obtain a
city business license. To find out if your city licenses businesses, call
your local city clerk's office. To find a list of city clerk's offices
with contact information, visit City_Clerks.htm.
If your business will be located outside the city limits, contact your
county recorder's office to find out if you need a county business
license.
If you plan to have a home-based business,
visit the Hot Topics section of this Web site
to find out what additional licenses or permits you may need and
what special requirements may affect your business.
How do I find out if someone else is already using the
business name I want to use?
You can do a Business Entity Status Search on the Idaho
Secretary of State’s Web site using the form found at http://www.accessidaho.org/public/sos/corp/search.html?SearchFormstep=crit.
After entering the name you want to look up, the site will tell you if the name is
already being used in Idaho. You may also want to look up names that are
similar. Also do an Internet search to find regional or national companies
using the same or a similar name.
Once you decide on your business name, you can print the form
to apply for an
Assumed Business Name (also called a DBA) from the same Web site. You may
want to avoid
choosing a
name that will be confused with an existing business, either one
registered in Idaho or a nationally known company. Though it is legal
to use the same name, your business could be confused with the other
business and that may not be in your best interests, particularly if the
other business has a less than stellar reputation.
For information on
protecting your business name, go to DBAs, Trademarks, Service
Marks on the Hot Topics page
of this site. Also visit the Legal Structure/DBAs
section of this Web site.
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How do I obtain a permit that will allow me to
make retail sales in Idaho?
To make retail sales in Idaho, you will need to
obtain an Idaho sales tax permit, also called a reseller's permit. The permit may be obtained by
completing Form IBR-1 on-line at https://labor.idaho.gov/applications/ibrs/ibr.aspx
or print a copy at http://www.tax.idaho.gov/pdf/2004/Forms/Application_Registration/IBR-1_BusinessRegistForm_%206-09-04.pdf
and mail it in. By completing Form IBR-1 you are
registering your business with three state agencies. If you
will not have employees and do not need to register your
business with any agency other than the State Tax
Commission, you can obtain a sales tax permit by contacting
the Idaho Tax Commission at http://www.tax.idaho.gov.
You may find the publication located at http://tax.idaho.gov/pdf/SalesTaxBrochures/BR5_SalesTax_11-09-04.pdf
to be helpful.
How do I know whether to set up a Sole Proprietorship,
a
Partnership, Corporation, or an LLC? How do I change from one to the other?
Review the descriptions of each entity type
found on the Legal
Structure/DBAs page on this
site. Also check out the Legal Structure/Business Entity Descriptions
information on the Links section of this site. If you aren’t sure which legal entity is right for you,
contact the Small Business Administration or your nearest Idaho Small Business
Development Center. They are listed
under Business Formation and Expansion on the Business Assistance button
to the left. They will help you understand the various types of legal
entities. You may also want to contact an attorney and/or an accountant to make sure you have selected the proper
entity type for your particular type of business because your
entity choice will affect your taxes.
Once you have decided on a business type, you can download the
necessary forms from the Secretary of State’s
Web site at http://www.sos.idaho.gov/corp/corindex.htm.
If you choose to register as anything other than a sole proprietorship,
you may need to have an attorney draft the proper documents for you.
To change from one type of business entity to another,
first download the form to amend your business name or cancel an existing
business entity. Information about this can be found on the Legal
Structure/DBAs section of this site. Then, download the form for the new
entity type, fill it out, and submit it to
the Secretary of State’s Office with the proper filing fee.
If you are a corporation and you want to change your name
or status, you must file Articles of Amendment. Visit the
Secretary of
State’s Web site for more information.
When you change entity type, you need to also contact the
Internal Revenue Service to determine how your tax reporting may change.
Information is available on this Web site at http://www.idahobizhelp.org/legal_ent.htm#Canceling.
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I am thinking of giving up my business. How do
I make that decision? What do
I need to do to close the business?
You will need to contact several agencies to
dissolve your business. Begin by clicking on the Business Assistance
button to the left where you will find a list of agencies under
Business Sale/Dissolution. You will see the Idaho Small Business
Development Center listed as one of the contacts. Contact the nearest office to make an appointment for
a consulting session. An Idaho SBDC counselor can help you through
the process.
I am having trouble competing with big box stores and
major suppliers. Where can I get help?
Click on the Business Assistance
button to the left. Then, under
Consulting/Counseling, you will see the Idaho Small Business Development
Center. Contact the nearest office to make an appointment for a consulting
session.
What is a vendor’s license and where do I get it?
Businesses that engage in temporary retail sales or solicitation of sales for future
delivery, including those that sell door-to-door or at festivals, events,
and trade shows, must obtain a vendor’s permit, a solicitor’s permit, or a
temporary vendor’s permit. Contact the City Clerk’s office in the city
where you will be doing business. If you are engaged in door-to-door
sales, you and each of your employees may need to obtain a permit in every city where you work.
Each of you will have
to undergo a background check before the permit is issued.
You will
also need an Idaho sales tax permit, called a reseller's permit. You can obtain it either by
filling out the on-line Form IBR-1 at https://labor.idaho.gov/applications/ibrs/ibr.aspx
or by printing Form IBR-1 found at http://www.tax.idaho.gov/forms_permits.htm
and mailing it.
If the sales will be made at a special event of short duration, you may
qualify for a temporary seller's permit. For information, call the Idaho State Tax
Commission at (208)334-7660 or (800)972-7660.
How do I register to sell to the government or
become a preferred
vendor?
If you want to sell to either the state or federal government, you must first
register to become a government contractor. See
Government Contracts/Procurement on the Links
or the Hot Topics sections of this site for information.
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Where can I get a DBA (also called an Assumed Business
Name)?
Check out the Legal Structure/DBAs
page on this Web site or visit the Idaho Secretary of State’s Web site at http://www.sos.Idaho.gov/corp/corindex.htm.
Information is also available on
this site
on the Links page under Legal Structure/Business
Entity Descriptions and Forms.
You can search the Secretary of State's on-line database at http://www.accessidaho.org/public/sos/corp/search.html?ScriptForm.startstep=crit
to see if someone else is
already using the name you want to use or a similar name.
Can I advertise on this site or put a link on this site?
Any state or federal government agency or non-profit
organization can be represented on this site if they license or regulate
business activities or offer services that are business-related. Local agencies such as city clerks and
county assessors are not represented individually, because there are so many
of them and their regulations may vary from area to area. There is no cost to
be
listed on the Web site. This is a non-commercial site,
so no advertising is accepted. If your organization fits the above
criteria and you want to be listed on the site, send us a message via E-mail, then we
will review your site for possible inclusion. Please do not
place a link on your site and then expect us to provide a
reciprocal link.
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What forms do I need to file to start a business?
It depends on the type of business you want to start.
Some types of businesses are more heavily regulated than others. Go
to the Business Wizard on this site and answer the
questions. The
resulting Checklist will tell you what forms you need to file and the
agencies with whom you need to file them. Also visit the Legal
Structure/DBAs page on this site for information about registering
your business entity form and your business name.
What loans and grants are available for starting a
business?
Regarding grants, there aren’t any if you want to
start a typical for-profit business. The few programs that are available
are primarily for businesses engaged in developing new technology and they
have
stringent requirements. For more information, check out Grants
on the
Hot
Topics section of this site.
For loan information, do a search
on the Resource Wizard to find banks in your area
and special loan programs. Also check Loans on the
Hot Topics section of this site. You can also contact your
banker or your nearest Idaho Small Business Development Center
office for information about loan programs for which you might qualify.
What do I need to know about tax reporting for a new business?
The State Tax Commission, http://www.tax.idaho.gov
and the IRS, http://www.irs.gov are the primary
taxing authorities. If you have employees, the Idaho Department of Labor (http://labor.idaho.gov)
collects Unemployment Tax (sometimes called unemployment insurance). Other types of taxes may also apply, depending on the
nature of your business. The best way to find out what you may need to pay
is to do a search of the Business Wizard on this site. The resulting Checklist will
inform
you of tax reports you may need to file and other required reports. Also
visit the Taxes section of this Web site
for information on specific types of taxes that may apply to your
business and the agency that collects them.
How do I make a business plan?
Check out the section on Business Plans under the Links section
of this site. You will
find links to sample plans and instructions for creating your own plan. For assistance in preparing your plan,
contact the Idaho Small Business
Development Center or the Small Business Administration. They are listed under Business
Assistance, Business Plans
on this site. They can help you with the necessary research for your plan and they occasionally offer classes on
writing a business plan.
Who do I talk to about making a financial success of my
business?
Make an appointment with a counselor at the Idaho Small
Business Development Center, the Small Business Administration, or SCORE. They are listed under Business
Assistance,
Consulting/Counseling on this site. They will talk to you about your
business and help you understand what you need to do to be financially
successful. Their counseling services are free. Also talk with your
accountant and your banker to learn about strategies that you may
be able to implement.
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I couldn’t find my business on the Wizard, so I didn’t
go through it.
That only means that you don’t need a special
license or permit (lucky you!). You still need to go through the Business
Wizard to see what tax reports and other forms are required for your
business entity type and to find
out what you must do if you have employees or independent contractors.
I have an out-of-state business and plan to
do business in Idaho. How can I get information regarding Idaho
regulations?
Out-of-state businesses may be subject to the same
regulations affecting businesses located in Idaho. Click on the Business
Wizard button on the menu on the left to obtain a customized
check-list of agencies to contact that may require licenses, permits, and
forms.
Also contact the Secretary of State's
office
to
find out whether you need to register your business in Idaho, the Idaho State Tax Commission
to find out about taxes you may need to pay, and the Idaho Industrial
Commission if you have employees or independent contractors.
My bank says I need a business tax code or a personal tax
code to open a business checking account. What do they mean and how do I
get one?
They probably mean the Federal EIN (Employer
Identification Number) or your Social Security Number (SSN). These may
also be called Tax ID Numbers. If you are a Sole Proprietor with no
employees you may be able to use your SSN. Otherwise you need to
obtain a Federal
EIN. (Be aware that, in addition to your bank, most government agencies
and corporations with whom you do business will require that you
obtain an EIN even if you are a sole proprietor with no
employees. For security reasons, they can no longer accept Social Security
numbers as business identification numbers.)
To apply for a Federal EIN, fill out form SS-4 and submit it to
the Internal Revenue Service. The form and instructions can be downloaded at http://www.irs.gov/businesses/small/article/0,,id=102767,00.html. There
is no charge to obtain a number and the process is quick and easy. You can apply by phone, fax, or mail.
Where can I find out about paying overtime?
Visit the U.S. Department of Labor Web site at http://www.dol.gov/dol/topic/wages/overtimepay.htm.
For other important information about having employees, click on the Employer Issues button on this Web site or visit the Web site of the
Idaho Department of Labor at
http://labor.idaho.gov.
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What is a Health
Insurance Identification Number and how do I get one?
If your business offers health insurance to employees,
you will need to use a National Standard Employer
Identification number to report claims electronically.
The Department of Health and Human Services recommends
that businesses use their Federal Employer
Identification Number (EIN) as their health insurance
identification number. For information, visit http://www.cms.hhs.gov/EmployerIdentifierStand/02_EmployerIdentifierRegulations.asp#.
For information on obtaining an EIN, also called a Tax
Payer Identification Number, visit the Hot
Topics section of this Web site.
How do I obtain a UPC code for the product
that I plan to sell?
Visit the Web site of GS1 US BarCodes and eComTM,
formerly known as Universal Packaging Codes, at http://barcodes.gs1us.org/Home/tabid/36/Default.aspx.
Membership is required to obtain a UPC number.
I want to change the name of my business. Who do I
contact?
To change a business name, you need to
notify the Idaho Secretary of State's Office using the form found at http://www.sos.state.idaho.gov/corp/forms/abn_amend.pdf.
You also need to notify the Internal
Revenue Service (IRS) when you change the name of your business to
be certain that your taxes continue to be reported correctly. You
may also need to obtain a new EIN, Employer Identification
Number. For information, visit http://www.irs.gov/individuals/article/0,,id=148089,00.html.
My product is made in the U.S., a rarity today. Do I
need to do something to be able to advertise it as U.S.-made?
The Federal Trade Commission (FTC)
regulates advertising that promotes products as made in the U.S.A.
You can find information at http://www.ftc.gov/bcp/conline/pubs/buspubs/madeusa.shtm.
How can I have my product certified as organic or
"green?"
The Idaho Department of Agriculture certifies farms and food products
grown in Idaho as organic. They also certify organic soil
amendments (fertilizer) made in Idaho. For information, visit http://www.agri.idaho.gov/Categories/PlantsInsects/Organic/indexOrganicHome.php
The U. S. Department of Agriculture administers the National
Organic Program for production, handling, and labeling of
agricultural products, including meat, poultry, seafood, and
alcoholic beverages. Information is available at http://www.ams.usda.gov/.
If you have a non-food product you want to have certified, contact
Green Seal at http://www.greenseal.org/.
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