Marketing Plan:  A plan detailing how a company’s products and/or services will be marketed. This includes information on target markets and how to reach them, competitor analysis, marketing and advertising methods, anticipated marketing costs, and possible future marketing opportunities. The marketing plan may be included in the business plan.

Mezzanine Financing: A loan for the purchase or renovation of real estate. Mezzanine financing is less expensive than an equity loan and similar to a second mortgage, a subordinated interest in a first mortgage, or a preferred equity interest in the property. Mezzanine loans are typically written for up to three years, but may be extended. 

Mine License Tax: Idaho imposes a 1% tax on the value of ores mined or extracted. The tax is paid to the Idaho State Tax Commission using Form 47.

National Standard Employer Identification Number: A number used to electronically transmit health insurance claims. The U.S. Department of Health and Human Services recommends that businesses use their Federal Employer Identification Number as their health insurance identification number. For information, see http://www.cms.gov/Regulations-and-Guidance/HIPAA-Administrative-Simplification/EmployerIdentifierStand/index.html.

New Hire Reporting: Federal law requires employers to report new employees and those returning after an absence of 12 months or more to the Idaho Department of Labor. The information is used to locate parents who are in arrears with child support payments. For information, see https://www2.labor.idaho.gov/newhire/.

Non-exempt Employee: An employee who must be paid overtime after completing 40 hours of work in a continuous 7 day period. Federal regulations determine who is a non-exempt employee based on job duties, not job title.

Officer & Director Insurance: Officers and directors of a corporation may be held personally liable for their actions on behalf of the company. This insurance protects them in the event of a lawsuit. Some people may be unwilling to serve on a board of directors without this coverage.

Operating Property: The State Tax Commission is responsible for valuing public utilities and railroads, which are collectively called "operating property."

Overtime/Overtime Pay: Employees who are paid an hourly wage and who work more than 40 consecutive hours in a seven day period are entitled to overtime pay unless exclusions apply. The U.S. Department of Labor, not the employer, determines who is eligible for overtime payment.

Perfection of Security Interest:  Creditors may use a debtor's personal property as collateral for a loan by taking (or perfecting) a security interest in that collateral. To form a security interest, both parties (creditor and debtor) must create a written security agreement that specifically grants a security interest to the creditor. The agreement should describe the collateral being used to secure the debt and must be signed by the debtor. Once the agreement is made, the security interest "attaches," which means that if the debtor defaults on the loan, the creditor may repossess the collateral or foreclose on real property to pay off the debt. 

The creditor who holds a security interest in the real or personal assets of a business should file a State of Idaho Financing Statement, Form UCC-1, with the Idaho Secretary of State's office. This places a lien on the assets and protects them against other creditors and transfers by the original debtor to another party. Only banks, dealers, or individuals who regularly grant loans can file with the Secretary of State. A lien is in effect for five years and may be renewed. More information is available on the Secretary of State's website.

Pollution Prevention (P2): Pollution Prevention is any activity, including the use of materials, processes, or practices, which reduces or eliminates the creation of pollutants or waste at the source. It includes protection of natural resources by conservation and increased efficiency in the use of raw materials, energy, water, or other resources. For more information, visit the Pacific Northwest Pollution Prevention Resource Center's website at http://www.pprc.org.

Professional Liability Insurance: Protects professionals (doctors, lawyers, architects, etc.) against malpractice suits.

Pro-forma Financial Statements: Financial statements created by a business to project the anticipated financial future of a business. The statements are created using current data and include anticipated changes in sales, revenue, and expenses and their affect on future net earnings. Start-up businesses without a current financial history create pro-forma statements using estimates of future sales and expenses.

Property Taxes: Property taxes are paid on both real estate and personal property, such as equipment or machinery, office equipment and software, owned by a business. The tax is collected by your local county assessor. For information, see the Taxes section of this site.

Registered Agent: A person or business physically located in Idaho that acts as the legal point of contact for a foreign corporation or LLC.

Salaried Employee: Usually a supervisor, manager, or another professional who is paid an annual salary pro-rated by pay period; he/she is not paid an hourly rate. Salaried employees are typically exempt from overtime pay (see exempt and non-exempt employees above).

Sales and Use Taxes: Idaho sales and use tax is imposed on retail sales and rentals of tangible personal property. Sales tax is also collected on admission fees, fees for recreation, hotel/motel/campground accommodations, subscriptions, and fabricating and printing labor. Sales tax is prepaid on coin-operated amusement devices (such as video games) by the owner who buys a yearly "amusement device decal" for each device.