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DBA/Assumed Business Name 
 Trademarks, Service Marks
 Crowdfunding
 Employee Retirement Plan - Establishing
 Government Contracting/Procurement
Grants
Green Certification
 Harassment
Home Business
 Invention Assistance
 Loans
Non-Profits
 Scams/Schemes/Fraud
 Substance Abuse in the Work Place
 Tax Payer Identification Number
 Venture Capital/Angel Capital
 Women, Minorities, Veterans, Disabled
 Work-at-Home Schemes
 Zoning Compliance

DBA/Assumed Business Name

DBAs (short for "Doing Business As") are used to identify your particular business, such as "Jones Plumbing." Anyone planning to engage in business in Idaho must register the business name with the Secretary of State's office before transacting business. For more information on this topic, visit the Legal Structures/DBAs page on this site.

NOTE – Registering an Assumed Business Name does NOT create a legal form of business (business entity), such as a Partnership or Corporation, nor is it a business license. Business licenses are issued by your city or county, not the state.

IMPORTANT - registering your Assumed Business Name with the Idaho Secretary of State does NOT protect you from someone else using the same name if you or they are a sole proprietorship (corporations and LLCs must have unique names). Therefore, before you register a business name, you may want to make a search at http://www.accessidaho.org/public/sos/corp/search.html?SearchFormstep=crit to find out if another business is using the same name or a similar one, or has recently used it.

It is currently legal for more than one business to use a name the same as, or similar to, that of another business if one or both businesses are sole proprietorships. However, doing so can create confusion between the two businesses and you could be mistakenly associated with the actions of the other business, including negative ones and financial ones, so it is best to choose a unique name.

Trademarks, Service Marks

State Registration: Once you have registered your unique business name, to protect it from use by others, you can register it and/or your unique logo as a trademark or service mark. To register your trademark in Idaho, visit the Secretary of State’s Trademark Division at http://www.sos.idaho.gov/tmarks/tmindex.htm. 

National Registration: To protect your trademark within the entire U.S., you can register it with the U.S. Patent & Trademark Office at http://www.uspto.gov/trademarks/index.jsp.

International Registration: The Madrid System for the International Registration of Marks, established in 1891, allows businesses working in more than one country to register a trademark in multiple countries with the completion of only one application. For information, see http://www.wipo.int/madrid/en/

Two businesses cannot register the same trademark. Therefore, before applying to trademark your name or logo, first do a search to determine whether another business has already trademarked it or something very similar. If they have not and you trademark it, then, if someone attempts to use that name or symbol, you can take legal action for trademark or service mark infringement.

After trademarking your business name or logo in Idaho, you should use the trademark symbol ™ on written materials that include the trademarked name or logo. If you register your trademark with the U.S. Patent and Trademark Office, you should use the Registered ® symbol.

Crowdfunding

Crowdfunding is a current financing trend designed primarily to raise start-up funds or funds to launch a new product. The most common type of crowdfunding involves securing donations from the public. Companies attempt to raise funds by offering a specialty gift in return for donations of varying amounts. For instance, a company raising funds to import gourmet coffee might offer a special mug for a donation of a certain amount or a pound of coffee for a higher donation. Two of the most popular crowdfunding donation websites are Kickstarter and Indie GoGo.

About 30 percent of products meet their funding goal. If they don't, the business receives no money and the funds that were raised are returned to the donors. Crowdfunding is most successful when a business needs to raise a modest amount of money in a short time. The median donation is $25 and the average donation is $70.

The most popular, and therefore easily funded, products are games, art, books, music, food, and fashion and design - anything new and different. Crowdfunding is usually not successful for service businesses, websites, app development and any other business that does not offer a tangible product.

Two other types of crowdfunding involve selling small amounts of equity in a business to a large network of purchasers and financing microloans, also called debt funding, by a crowd. Equity funding is addressed in the JOBS Act signed into law by President Obama in April 2012. It is currently under review by the Securities and Exchange Commission. Crowdfunder is an example of equity crowdfunding. Kiva is an example of debt crowdfunding.

Employee Retirement Plans - Establishing

Establishing a 401(k), SEP, or another retirement plan for your employees will help with employee retention and may help attract new employees. The plan must be established in a manner that complies with Federal and state laws and Internal Revenue requirements.  

The U.S. Department of Labor oversees the Employee Retirement Income Security Act (ERISA), which sets standards for establishing and maintaining retirement plans. For information, visit http://www.dol.gov/dol/topic/retirement/consumerinfpension.htm. Information on the Pension Protection Act is found at http://www.dol.gov/ebsa/pensionreform.html.

IRS tax reporting requirements for small business retirement plans are found in Publication 560 at http://www.irs.gov/pub/irs-pdf/p560.pdf. For information on establishing, operating, and terminating plans, see http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics.

Government Contracting/Procurement

Federal, state and local government agencies purchase everything from computers and vehicles to cookies and coffee from small businesses. They also contract with small businesses to construct or renovate buildings, build or improve infrastructure (roads, bridges), maintain landscaping, clean buildings and much more.

Selling to Federal Agencies: Businesses interested in selling to or contracting with federal government agencies must register with Federal Contractor Registration at https://www.uscontractorregistration.com/online-registration. Information about contracting is found at https://www.uscontractorregistration.com/government-needs. Government agencies search this database to find suppliers for needed goods and services. 

Requests for bids on government contracts are listed in the Federal Business Opportunities database, https://www.fbo.gov/index?cck=1&au=&ck=. Once registered with FCR, you can access the database to find bid opportunities.

Information on Federal construction project bidding procedures and on retail products and services needed by federal agencies, including food, is found at http://www.gsa.gov/portal/content/105221. 

The GSA (Government Services Administration) is the primary purchasing agency for the federal government. Federal "Prime" contractors (major contractors) are required to purchase a percentage of the goods and services they use from small businesses. Prime contractors are listed in the GSA Subcontracting Directory at http://www.gsa.gov/portal/content/101195. You can contact these businesses to find out about selling your goods and services to them.

TechHelp, an Idaho manufacturing assistance organization, helps Idaho businesses qualify for government contracts by helping streamline manufacturing processes and procedures to make businesses more competitive. TechHelp partners with Idaho Procurement Technical Assistance Center and the Department of Defense TechMatch Program. For information on their services, visit http://www.techhelp.org/index.cfm?fuseaction=services.government.

Selling to Idaho Agencies: To sell to Idaho state government agencies, you must first register your business at http://www.sicomm.net/Users/registration.html or at http://ipro.sicomm.net/IPRO/. Then, you can sign up to receive e-mail notification of bid opportunities matching your specific qualifications. Once registered with SiComm, you can access many current bid opportunities posted at http://ipro.sicomm.net/IPRO/.

Not all state agencies list their contracting opportunities with SiComm, choosing instead to post bid opportunities on their own websites. Idaho Transportation Department construction and maintenance projects are posted at http://itd.idaho.gov/AdminServices/NonHwyConstructionProjects/bidding_info.htm. Idaho public works construction projects are posted at http://adm.idaho.gov/pubworks/dpwconstprojects.htm. Idaho Department of Lands contracting opportunities are posted at http://www.idl.idaho.gov/contracts/bids.html.

For information about the State purchasing process, visit http://purchasing.idaho.gov/ or download the Vendor's Guide found at http://purchasing.idaho.gov/pdf/publications/vendor_guide.pdf.

Selling to Local Agencies: Cities and Counties generally list their bid opportunities in the classified section of a local newspaper.

Disadvantaged Businesses: Woman, veteran and minority-owned businesses, collectively known as disadvantaged businesses, may have preference in bidding on certain contracts through the various Federal agencies' Offices of Small and Disadvantaged Business Utilization (OSDBU). To find a list of all Federal OSDBU offices visit http://www.osdbu.gov/members.html

Woman-owned Businesses: For information about the SBA's new Women-Owned Small Business (WOSB) Federal Contract Program, visit  http://www.sba.gov/content/contracting-opportunities-women-owned-small-businesses. 

HUBzones: If your business is located in a federally-designated HUBzone (an economically distressed area within a city or county), you will have preference in bidding on federal contracting opportunities. For information on the HUBzone Empowerment Contracting Program, visit http://www.sba.gov/hubzone/. To find a map of HUBzone areas in Idaho, visit http://www.sba.gov/content/hubzone-maps. Portions of several Idaho cities and counties are designed HUBzones.

Grants

In a nutshell, very few grants are available if you want to start or expand a for-profit business. Despite what you may see or hear, once you sift through the hype, only a few grants (with many restrictions) are available for starting or expanding a for-profit business. Most grants are available to non-profit organizations to expand their work or to fund special projects and activities. Grants are also available to communities for job creation in economically depressed areas, building infrastructure (highways, bridges, etc.) and creating or expanding community development programs. 

Many grants conferences and books are scams. They say there is free money, and there is, but not for a typical for-profit business. For information on a national grant scam that has been around for years, visit this Web page to read an article from the Consumer Fraud Reporting website.  

You do not need to purchase books or pay for help to locate legitimate grant opportunities. The information is available for free on the Internet and from your local Small Business Development Center or SCORE office.

SBIR/STTR Grants: With few exceptions, most of the grants available to for-profit start-up businesses are SBIR and STTR grants (Small Business Innovation Research and Small Business Technology Research). If you have invented an innovative product that will serve the national interest, you may qualify for an SBIR or an STTR grant to help you develop it. Grants are offered by 11 federal agencies through a competitive process. Boise State's TECenter can help with the application process and the service is free. For information, check out SBIR and STTR programs at http://www.idahosbdc.org/index.cfm?fuseaction=content.view&page=22 or visit these websites:

Grants for Innovation: If you own an existing for-profit business (not a start-up) that is engaged in the development of new technologies or processes or your business uses natural resources in an innovative way, you may qualify for a grant to develop your technology. To find grant opportunities, visit the following websites:

Made in America Grants: If your product is made in America and you have problems competing with foreign businesses, you may be eligible for assistance through the Northwest Trade Adjustment Assistance Center, http://www.nwtaac.org/.

Non-profits: If you are a non-profit organization, these sites will be helpful:

Other Programs: Special business assistance programs for women, minorities, veterans, the disabled, and others are available, but these are usually for low interest loans, government contracting opportunities, and other types of assistance. They are rarely for grants.

Tax Incentives: Your business may qualify for tax incentives (tax credits) for certain business activities, such as creating new jobs in an economically depressed area, hiring welfare recipients or the long-term unemployed, or bringing broadband to rural communities. Incentives are offered at both the state and federal levels. Information on State programs can be found on the Idaho Department of Commerce website at http://commerce.idaho.gov/business/incentives-/. To find federal tax incentives, do a search of the Resource Wizard on this site or make a search on the IRS website at http://www.irs.gov.

Idaho Prime Loan Program: The Idaho State Treasurer in cooperation with the Small Business Administration and the banking community offers the Idaho Prime Loan Program. This is a low-interest loan program, not a grant, available to qualified small businesses. For information, visit http://sto.idaho.gov/Programs/IdahoPrime.aspx.

Energy Conservation: Loans and tax incentives for energy conservation programs are offered through the Idaho Office of Energy Resources. For information, visit http://www.energy.idaho.gov/financialassistance/. The site includes information on the federal Rural Energy for America program, which funds grants and guarantees loans to agricultural producers and rural small businesses for assistance with purchasing renewable energy systems and making energy efficiency improvements.

Grants for Women: Zion's Bank offers annual "Smart Women" grants. The competitive grants are for $3,000 or less and are available for special projects in the following areas:

  • Business
  • Community development
  • Continuing education and teacher support
  • Child and elder care
  • Health and human services
  • Arts and culture

The program is accepting applications through June 28. See https://www.zionsbank.com/learning-center/swsm-grant.jsp for details.

To get the truth about grants and loans, talk with a counselor at the Small Business Administration, the Idaho Small Business Development Center, or SCORE. Contact information for each organization is listed in the Business Assistance section of this site. A counselor will help you determine the best funding options for your business. Their services are free.

For more information about grant scams, visit the Scams & Schemes Hot Topic on this site. Also visit the Federal Trade Commission's website at https://www.consumer.ftc.gov/articles/0113-government-grant-scams.  The FTC files fraud charges against companies that conduct misleading grant workshops and those advertising that, for a fee, they can provide grant information.

For information about business loans, see the Loans section below or do a search on the Resource Wizard.

Green Certification

Certifying your business or product as eco-friendly or organic informs potential purchasers that your company cares about the environment and is actively engaged in sustainable practices. Once certified, you can include a logo and/or information from the certifying organization on product labels, in brochures, on your website and in other marketing materials.

To find a list of U.S. and international organizations offering green certification for a wide variety of products, visit http://www.sba.gov/content/green-certification-and-ecolabeling.

If your business produces organic food products or an organic soil amendment (fertilizer), contact the Idaho Department of Agriculture to obtain organic certification. For information, visit www.agri.idaho.gov/Categories/PlantsInsects/Organic/indexOrganicHome.php and Idaho One Plan, www.oneplan.org/Crop/OrganicFarming.asp.

The U. S. Department of Agriculture administers the National Organic Program for production, handling, and labeling of agricultural products, including meat, poultry, seafood, alcoholic beverages, beer and wine. For information, see http://www.ams.usda.gov/.

Harassment

On the job harassment takes many forms, none of which should be tolerated. One employee may harass another; a supervisor may harass an employee or group of employees or another supervisor; or a customer may harass one or more of your employees. The harassment may be related to religion, ethnicity, sex, age, disability or another issue.

Every business with employees should have a written harassment policy that is clearly communicated to employees, both as a deterrent to harassment and to inform them of their rights if they are harassed. It is particularly important to have a written sexual harassment policy because sexual harassment on the job violates federal civil rights laws. In a 1998 decision, the U.S. Supreme Court made employers more liable for the actions of employees even if the employer is unaware that harassment has occurred. Having a written policy your employees know about may offer some protection if you are sued.

To find training videos and additional information about preventing or investigating sexual harassment, see http://complianceandsafety.com/shop/c-sexual-harassment-118-1.html.

For more information about employer responsibilities in preventing harassment, see Employee Handbooks on the Links page of this website and Nondiscrimination Compliance on the Employer Issues page.


Home Business

Home-based businesses must conform with special regulations in addition to the regulations associated with the type of product or service they offer. For example, you may need a Home Occupation Permit or a Conditional Use Permit to comply with city or county zoning regulations. 

To learn about the various requirements, go through the Business Wizard. In Section 2 select the categories that apply to your business and also select Home Business. The resulting Checklist will include a combined list of agencies to contact. Also call your local city clerk's office to find out if you need a city business license or a special license for your business activity. Click here for a list of city clerk's offices.

Be certain your business can comply with your city, county, and/or homeowner's or neighborhood association regulations before you open it in your home. If you rent your home or apartment or live in a condo, check your lease agreement or covenants to be certain a home-based business is allowed, particularly if clients, employees, or delivery trucks will come and go.

Legal Requirements: A home-based business must be operated by a full-time resident of the home, not an employee. The business must be a secondary use for the home; the primary use must remain that of a residence. The character of the home, interior and exterior, cannot be changed from that of a residence. In most communities, a retail store, restaurant, coffee shop or similar business where customers come and go cannot be operated from a home.

The business must comply with local health, safety, and fire codes and with city and county ordinances. (This is particularly important if you plan to care for children, vulnerable adults, animals, or prepare food for sale to the public.) If you live inside city limits, you may be required to conduct all business activities inside the home, not in a yard, garage, or outbuilding.

You must also comply with local regulations concerning signage, traffic, number of employees, parking, noise, and air, wastewater, or soil pollution. You may not be able to store supplies or materials in a yard, garage, or outbuilding or park vehicles or equipment in your yard or on the street.

  • Food Preparation - If you plan to sell food prepared in your home, you will need to install a commercial kitchen in a separate area away from your home kitchen. If the kitchen is attached to the home, the adjoining door must be locked when the commercial kitchen is not in use. The kitchen will be regularly inspected and licensed by your regional health department. You will be required to install special sinks, stainless steel countertops, storage racks, refrigerator and more.

  • Child Care - If you plan to care for four or more children in your home, you will need a license from your city or from Idaho Department of Health and Welfare. Your home will be inspected by your regional health department and by the fire marshal before the license is issued and regularly thereafter. (Note - many city licensing requirements are more stringent than state requirements, so be sure to check.)

  • Product/Service Restrictions - Certain products cannot be legally manufactured or grown in a home business. These include fireworks and other potentially explosive items, drugs and drug paraphernalia, poisons, noxious weeds or insects, sanitary and medical products. Your community may restrict the production of additional items, so check with your city clerk.

    Some services, including those involving adults-only activities, nudity, gambling, loud noise, the sale of alcoholic beverages, tobacco or controlled substances or that may violate a city or county ordinance are prohibited in a home based business. Contact your city clerk's office for information.

  • Animals - Businesses involving animals are subject to numerous additional regulations and licensing requirements, depending on the type and number of animals involved and the service provided. You may need a kennel or breeder's license and/or be subject to special waste handling and noise abatement procedures, as well as other permits. You may also be required to carry additional insurance.

If you don’t contact the agencies governing home businesses, they will contact you and you may have to pay taxes and possibly fines for the months or years you were in business before they located you. If your business does not comply with zoning regulations or is operating without a conditional use permit (if required), you could be forced to close the business on very short notice.   

Employees: Your city or county regulates the number of employees your home business can have and the number of vehicles they can park at your home or on a public street. You will be required to display employment-related posters in your home office or shop. You must also carry workers compensation insurance, pay unemployment taxes, both federal and state, and comply with OSHA safety regulations.

For in-depth information on employee-related issues that may affect your business visit the Employer Issues section of this website.

Signage: Most communities regulate the size and type of signage allowed, if any, in a residential area. For instance, in Boise an unlighted sign no more than 2 square feet (2'x1') may be displayed. Check with your city clerk's office for your local requirements.

Tax Issues: If you are considering taking a tax deduction for your home office or shop, check with an accountant first. Some rules regarding recovery of expenses may not be in your best interest. For instance, if you take a deduction for a home office, you will not be able to use your office area or your office equipment, including computers and printers, for any purpose other than business. When you sell the house, you must pay taxes on the portion of the house you excluded in previous years.

If you are considering writing off hobby expenses as a business activity, check with an accountant first. Special tax regulations cover hobby businesses and you must have income from the activity to deduct expenses. For more information, visit http://www.irs.gov/ and look for "hobby business."

As a small business owner, you must pay taxes on the profit from your business. You will also pay self-employment tax and you may need to pay quarterly estimated taxes. For information on tax issues, visit the Taxes section of this website. 

For information on Social Security and Medicare requirements for the self-employed, including independent contractors, visit http://www.ssa.gov/pubs/10022.html.

Financing: Home-based businesses may have difficulty securing loans, particularly for start-up financing. Banks generally limit start-up funding to 50% of what you need. You might use savings or loans from family and friends to finance the balance. To apply for a loan you will need to have a good personal credit rating and a well-written business plan with financial statements. You will be expected to provide collateral as security for the loan. This may include pledging your home, a vehicle, or other personal assets in addition to business assets. Interest rates and repayment requirements vary by lender.

Insurance: You will need to insure your business regardless of where it is located. Check with your homeowner’s insurance agent or an insurance agent who writes policies for small businesses. Not all types of home-based businesses are covered by homeowner's insurance, particularly if your primary activity, such as house painting, does not occur at your home. If your homeowner's insurance will cover your business, you may need to add additional coverage for business equipment, inventory, or a business-owned vehicle.

You may need to increase your liability coverage if clients regularly visit your home, you have a dog or another animal that might harm a client, or other issues, such as falls, might occur. Check with your insurance agent for information.

For information on other types of insurance you may need, such as workers' compensation or product liability insurance, visit the Insurance section of this website.

Security: Home-based businesses have unique security issues. These include allowing strangers into your home, protecting mail, computer security, and personal safety issues, both in and out of the office.

You can protect your mail, particularly checks and financial information, by using a mailing address other than your home address. If you receive or send a large number of packages, neighbors may complain about delivery trucks coming and going. Using the services of a package shipping center, where you can also rent a mail box, can solve both problems.

The Missouri Small Business & Technology Center offers much information on protecting your home and yourself at http://www.missouribusiness.net/sbtdc/docs/hbb_security_plan.asp, including a recommendation that you create a security plan for your business describing how various emergencies will be handled.

Business Telephone: Using your home phone number as your business number is not a good idea unless you are certain other family members, particularly children, will not answer the phone or will answer all in-coming calls in a professional manner.

If you use a cell phone as your business phone, you may have difficulty listing your business in your local phone directory and in the Yellow Pages. If you change carriers and phone numbers often, that will negatively impact your business when customers can't reach you.

You will also not be listed in the directory or Yellow Pages if you use your home phone number as your business phone number. You must have a separate business phone line.

Zoning: Before opening a business in your home, check with your city or county planning and zoning department to find out if you can legally do so. For instance, you may not be able to operate a construction business from a private home if you park trucks and equipment around the home or employees come and go. Most communities do not allow retail businesses, such as stores or restaurants, to be located in an area zoned for residential use. If you are operating the business in violation of zoning regulations, your business could be closed without notice when planning and zoning learns about it.

Also check with your homeowner's or condo association or your apartment lease to be certain your covenants allow you to operate a business from your home, particularly if employees, clients and/or delivery trucks will come and go.

Client Meetings: If zoning regulations, your homeowner's association or apartment complex do not allow client meetings at your home, if you have young children, an unruly pet or another distraction, or safety is a concern, you may need to meet clients at another location. The best solution is to meet the client at his or her office. If that isn't possible, you may be able to rent temporary meeting space in an office complex, hotel, or another facility. Depending on the nature of your business and the formality of the meeting, you may be able to meet at a coffee shop or another public place.

If you can't meet clients at your home office, or you don't want to deal with interruptions caused by unannounced visitors, don't list your address on your business cards, website, or in advertising materials. Instead, list only your phone number or email address and say "By appointment."

Part-time Business Considerations: If you start your business on the side while working for an outside employer, the product or service you offer should not compete with that offered by your employer's business, nor should you use company time, equipment or materials to pursue your personal interests.

Closing Your Home Business: If you decide to close your home-based business you will need to contact several agencies. For information, visit the Business Assistance section of this website.

CAUTION - If you are starting a home business in response to an ad about earning money at home, BEWARE! Before you pay any money, check the links under Work-at-Home Schemes and Scams & Schemes Hot Topics below. Work-at-home scams are among the most prevalent. Meet with a counselor at the SBA or your nearest Idaho Small Business Development Center and call your nearest Better Business Bureau before you send money. All are listed under Business Assistance, Business Formation and Expansion.

Invention Assistance

To find information on inventing, product development, commercialization and more, visit http://www.idahosbdc.org/index.cfm?fuseaction=content.view&page=16 or visit the Links section of this website by clicking on the tab at the top of the page. Contact the organizations listed that offer unbiased help. There are many and most are free. Also visit the websites offering information on Invention Fraud and contact a patent attorney. You will need one eventually, so do it early in the process. For further assistance, contact the Small Business Development Center office in your area.

CAUTION - Before giving money to anyone to help you with your invention, check with the many government and non-profit organizations offering free, unbiased help. Many scams prey on trusting inventors. They often want money up front to evaluate the patentability of your invention, then more money to help you develop a prototype, evaluate the market, file the patent, etc. You may get little or no real help from these organizations. They may be reluctant to give you qualified references of inventors who used their service with success as well as inventors who used their service with no success (even harder to get). They often provide no strategy for commercializing your product (taking it to market). If they do file for the patent, the application may be weak and not provide the protection you need. If they don’t produce any results for you and you want your money back, you may need to take them to court, and that can be a long and costly process.

Loans

Banks and numerous private organizations offer loans for everything from the purchase of a business to equipment leasing to factoring (a loan against accounts receivables). Family and friends may also be willing to lend money to help start your business. The following loan programs are available to many small businesses, though some are available only to established businesses, not start-ups.

Small Business Administration Loans - If your business meets the criteria, you may qualify for an SBA-guaranteed loan. The SBA does not lend money. Rather, they guaranty loans to qualified individuals and businesses through participating banks. To qualify, an applicant must meet both the bank's and the SBA's requirements. Additionally, the bank must certify that it would not provide this particular loan under the proposed terms and conditions without an SBA guaranty.

To find out if your business qualifies for an SBA loan, talk with the loan officer at your bank or visit www.sba.gov/content/how-apply-sba-loan. 

  • Patriot Express - The SBA created the Patriot Express Pilot Loan Initiative for veterans, active duty members of the military, reservists and their spouses or widows who want to establish or expand a small business. Ask your banker for details or visit www.sba.gov/content/express-programs.

  • SBAExpress -The SBAExpress program offers small business borrowers an accelerated turnaround time for SBA's loan document review. A response to an application is usually received within 36 hours. In addition, lower interest rates may be offered when a loan application is made through an Express program. See http://www.sba.gov/content/express-programs for details.

  • CAPLines - This SBA loan program helps established businesses meet short term and cyclical working capital needs. Talk to your banker or visit www.sba.gov/content/caplines.

  • SBA loans for Sam's Club Members - In July 2010 Sam's Club, in cooperation with Superior Financial Group, announced a pilot program offering SBA loans of up to $25,000 to Sam's Club qualifying members. (You must be a member of Sam's Club to apply.) Priority is given to minority, veteran, and woman-owned businesses and micro enterprises. The program offers a 20% discount on loan origination fees and quick turn-around time to pre-qualify. Applications are made on-line. For information, visit http://www3.samsclub.com/NewsRoom/Press/734?pid=WalmartStores and http://www.samsclub.com/sams/pagedetails/content.jsp?pageName=sbaLoanProgram.

Idaho Prime Loan Program - The Idaho State Treasurer in cooperation with the Small Business Administration and the banking community offers the Idaho Prime Loan Program. This low-interest loan program is available to qualified small businesses and start-ups. For information, visit http://sto.idaho.gov/Programs/IdahoPrime.aspx.

Energy Conservation Loans - Loans for energy conservation programs are offered through the Idaho Office of Energy Resources. Information is available at http://www.energy.idaho.gov/financialassistance/energyloans.htm.

Business Finance.com - This website matches businesses with over 4,000 lending resources. Enter your loan criteria and your fico score and receive a list of potential lenders. See http://www.businessfinance.com for details.

Crowdfunding - This new method of raising funds involves either securing many small donations from a large number of people or offering a small equity share in a business to many small investors. For information, see Crowdfunding above.

Angel Investors - Angel investors are individuals or small groups who invest in start-up or early stage businesses that have the potential to provide a high rate of return in a short time, usually high tech businesses. To find an angel investor, talk with your CPA, banker, or lawyer and ask for a referral. Most angel investors do not like to be approached directly. To find angel investors who invest in your particular type of business, do a search on the Resource Wizard.

Loan Preparation Resources - SCORE publishes the 60 Second Guide to Financing Your Start-up Business found at http://www.score.org/resources/60-seconds/financing-startup-business. The guide will help you determine your financing needs and offers tips on approaching lenders. You may also want to read through the Business Loan Checklist found at http://www.sba.gov/content/business-loan-checklist to be certain you have all the necessary documentation before approaching a lender.

To find banks and other loan providers in your area, do a search of the Resource Wizard on this site.

Non-Profits

Non-profits are regulated in much the same way as for-profit businesses. This site is designed primarily for profit-making businesses; however, non-profits can also find useful information by going through the Business Wizard and answering the questions about their business. The information will be particularly helpful if you have employees or use the services of independent contractors.

To be classified as a non-profit, a business must obtain approval from the Internal Revenue Service. The process can be expensive and time-consuming and many business activities do not qualify. Your attorney can help with the details and file the application for you. For information on applying for non-profit status, visit http://www.irs.gov/charities/article/0,,id=96109,00.html. The application form is found at http://www.irs.gov/pub/irs-pdf/f1023.pdf. You may find the IRS information on The Life Cycle of a Public Charity, found at http://www.irs.gov/Charities-&-Non-Profits/Charitable-Organizations/Life-Cycle-of-a-Public-Charity-Private-Foundation to be helpful.

Once the IRS grants non-profit status, failure to file an annual information tax return for three consecutive years may result in the organization losing its tax-exempt status. For information see http://www.irs.gov/Charities-&-Non-Profits/Automatic-Revocation-of-Exemption.

The Idaho Non-profit Center offers much information on establishing a non-profit in Idaho. The Center can help with creation of a board of directors, volunteer recruiting, fund raising, writing by-laws, creating a website, financial record keeping, and other issues. Their website is http://www.idahononprofits.org/

If you are thinking of starting a non-profit organization, you will find helpful information at http://www.idahononprofits.org/ResourcesResearch/HowtoStartaNonprofit/tabid/73/Default.aspx 

The Idaho Law Center publishes the "Handbook for Idaho Nonprofit Corporations" and "Now That I Am on a Non-profit Board, What Do I Do?" Both explain Idaho laws concerning non-profits and your responsibilities when serving on the board of a non-profit organization. To obtain a copy of either publication, contact the Idaho Law Center at 208-334-4500. There is a cost for each publication.

The Idaho Attorney General's office publishes the booklet, Service on an Idaho Non-profit Board of Directors found at http://www.ag.idaho.gov/publications/consumer/ServiceOnChartableOrganization.pdf. The booklet explains the responsibilities and liability associated with serving on the board of a non-profit organization.

For information about state sales and income taxes that may affect your organization, refer to the Idaho State Tax Commission's "Sales Tax Brochure #50, Nonprofit Groups & Churches," http://www.tax.idaho.gov/pubs/EBR00050_09-29-2006.pdf and page 1 of Idaho Form 41 instructions, "Who Must File a Form 41." 

If your non-profit is engaged in activities involving children, the elderly, or vulnerable adults, your employees and volunteers will need to submit to a background check and be fingerprinted. For information, visit http://www.isp.idaho.gov/BCI/index.html.

Scams/Schemes/Fraud

Small business owners, people wanting to start a small business and small business employers are prime targets for scams, schemes and fraudulent activies. Among the most common issues are:

The following organizations offer assistance in dealing with scams, schemes, and fraud in the business community, including employee-related fraud:

Substance Abuse in the Work Place

According to the U.S. Department of Labor, 75 percent of the nation’s current illegal drug users are employed, and 3.1 percent say they have used illegal drugs before or during work hours. According the the American Insurance Association, abuse of prescription drugs is the fastest growing drug problem in the U.S. In addition, 79 percent of the nation’s heavy alcohol users are employed, and 7.1 percent say they have consumed alcohol during the workday. Fourteen percent of heavy drinkers (those who consume 5 or more drinks each day) are employed full or part-time. Between 10 and 20 percent of workers who die on the job test positive for alcohol or drugs. The greatest percentage of drug users are between 16 and 25 years of age and are employed in construction, mining, manufacturing, food preparation and service, and bartending.

To help combat substance abuse both on and off the job, the Substance Abuse and Mental Heath Services Administration (SAMHSA) maintains a resource center to help employers address these issues and to assist in creating employee policies on substance abuse. The information is found at http://www.workplace.samhsa.gov/. SAMHSA's website is http://www.samhsa.gov.

U.S. Department of Labor elaws, How Does Substance Abuse Impact the Workplace?, is found at www.dol.gov/elaws/asp/drugfree/benefits.htm

Ninety percent of large corporations have a drug-free workplace program but less than 10 percent of small and medium sized businesses have one, making them prime targets for addicted employees.  DrugFree Idaho can help you establish a drug-free workplace program for your business. Visit their website at http://drugfreeidaho.org/

Tax Payer Identification Number

All businesses must have a tax payer identification number for tax reporting and other business purposes. If your business is a sole proprietorship with no employees, you may be able to use your Social Security Number, though most businesses with whom you work will require an EIN (to protect you and them from identity theft). If you have employees or do business with corporations or government agencies, you will need to obtain a Federal Employer Identification Number (EIN or FEIN), which will be your tax payer ID number. Your bank may also require you to have an EIN for account identification purposes.

For information about obtaining an EIN visit the Internal Revenue Service website, www.irs.gov/businesses/small/article/0,,id=98350,00.html. There is no cost to obtain a number and the process is quick and easy. 

If you change the name of your business or the entity type (such as from a partnership to a corporation), you may need to obtain a new EIN. For information click on the IRS link above.

If you have an EIN and then close your business or the business is never actually started, you will need to notify the IRS in writing. See http://www.irs.gov/businesses/small/article/0,,id=177073,00.html for information. Once an EIN is assigned to a business, that number is yours forever. Should you later reactivate the business, you can also reactivate the EIN number.

If your business offers employee health insurance, you will need to use a National Standard Employer Identification number for electronic claims reporting. 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 https://www.cms.gov/EmployerIdentifierStand/Downloads/empIDfinal.pdf

Idaho does not issue a state tax payer ID number; your federal number is acceptable for doing business in Idaho.


Venture Capital/Angel Capital

Venture Capital: Finding venture capital may seem like the answer to many small business funding needs, and it may be if you have a solid business plan, a track record in your industry or a related one, a qualified management team, and you don’t mind giving up a piece of your business and having someone watching over your shoulder. Most venture capital firms invest several million dollars in the companies they fund and in return expect a management position within the company or a seat on the board of directors.

To find a venture capitalist, check with your banker, attorney, or accountant for a recommendation to a company that specializes in your field and then arrange an introduction. (Most VCs don't like cold calls.)  Most venture capitalists prefer companies in rapidly growing industries, such as technology or bio-technology. Even then, only a small percentage of businesses (less than 1%) qualify for funding.

Venture capital funding is a fertile field for scam artists. They may ask for a sizeable up-front fee to review your business plan with no assurance they will fund your business. Before you make a commitment, spend some time researching the VC firm. How long have they been in business? How large is their investment fund? Who are their partners? What is their expertise? Get a list of their past investments. Check their references. What equity percentage of your business do you have to give them? Did you find this VC firm through legitimate sources (attorney, accountant, banker)? Call the chamber of commerce and the Better Business Bureau in the community where the company is located and ask about them. Contact the Attorney General’s office in the state in which the business is located and ask if complaints have been filed against them.

Angel Investors: If your business is in the early start-up phase or you don't need enough money to qualify for venture capital financing, seeking an angel investor may be more appropriate. Angel investors are wealthy individuals or groups that provide smaller amounts of money than venture capital firms. Like venture capitalists, angel investors usually prefer to invest in rapidly growing small businesses that will provide a high rate of investment return in a short time. They will expect a seat on the board and may also take a management position within the business.

Your banker, attorney, or CPA may be able to arrange an introduction to an angel investor. Like venture capitalists, angel investors don't usually like cold calls, and only a small percentage of businesses qualify for funding (less than one in 500).

An online Venture/Angel Capital Resource Directory is found at http://www.vfinance.com. The site matches investors with businesses seeking venture or angel capital. To find venture capital and angel investors interested in investing in Idaho businesses, do a search of the Resource Wizard.

For more information on venture and angel capital funding, visit the Small Business Administration website at http://www.sba.gov/content/venture-capital.

Women, Minorities, Veterans, Disabled 

Special business assistance programs may be available to businesses that employ or are owned by women, minorities, veterans, or the disabled (called "disadvantaged" businesses). For assistance in locating a program, contact your nearest Idaho Small Business Development Center or Small Business Administration office. Most programs give preference in government contracting or provide tax credits. They do not offer grant money, despite what you may have heard.

If you are a veteran or active duty military and you own a business, you may qualify for the Small Business Administration's Patriot Express pilot loan program. For information see Loans above. Also visit the website of the SBA Office of Veterans Business Development at http://www.sba.gov/about-offices-content/1/2985.

Numerous government contracting opportunities are available to qualified disadvantaged businesses. Some can be found in the Links section of this site. Others can be found by doing a search on the Resource Wizard on this site. Also see Government Contracting/Procurement above. You must be registered with either the state or federal government or both to bid on contracting opportunities.

The SBA's new Women-Owned Small Business (WOSB) Federal Contract Program provides opportunities for woman-owned businesses that desire to contract with the federal government. For information, see http://www.sba.gov/content/contracting-opportunities-women-owned-small-businesses.


Work-at-Home Schemes

We have all seen the ads for work-at-home opportunities on telephone poles, in the newspaper classified section, and on late-night TV. They sound so promising, so easy. In reality, many are scams. Among them are envelope stuffing, jewelry assembly, rebate processing, and medical billing or claims processing. Before you invest money, check it out. Visit the Federal Trade Commission's (FTC) websites at http://www.consumer.ftc.gov/articles/0175-work-home-businesses and http://www.ftc.gov/opa/2005/02/bizoppflop.shtm. For information in Spanish, visit http://www.consumidor.ftc.gov/articulos/s0175-negocios-de-trabajo-en-casa.

Also check Work at Home Truth, www.workathometruth.com/ to find legitimate opportunities as well as updates on current scams.

The U.S. Postal Service files postal fraud charges against those who use the mail to perpetrate fraudulent work-at-home schemes. For information, visit https://postalinspectors.uspis.gov/forms/MailFraudComplaint.aspx.

Before accepting a work-at-home "opportunity," talk to a counselor at the Small Business Administration or the Idaho Small Business Development Center; their services are free. They are listed under Business Assistance, Consulting and Counseling on this website. Check out the opportunity with your local Better Business Bureau or the BBB in the city where the business is located. Also visit the Scams & Schemes topic above.

Zoning and Conditional Use Permit Compliance

Every city or county in Idaho has zoning regulations with which your business must comply. Before signing a lease or a purchase agreement, first check with your city or county planning and zoning commission to be certain you can legally operate your type of business in the area you have chosen. Zoning laws prevent certain types of businesses from operating in certain areas. For instance, you would not be able to build a convenience store in an area zoned for agricultural use, nor can you establish a construction business in an area zoned as residential. 

If you open your business in violation of zoning regulations, it can be immediately shut down when a zoning inspector finds you or when a neighbor complains and it may be difficult to terminate your lease or purchase agreement.  

Home-based businesses must also conform to zoning regulations, as well as regulations established by their homeowner's association.  More information on this topic is found under Home Business above.

Some businesses, such as churches and day care centers, may be able to secure a conditional use permit to operate in an area not specifically zoned for their business type. Be sure to find out if your business qualifies for a conditional use permit and can meet all the requirements before you open it. If you attempt to operate your business without a permit, it will be closed when the city or county finds you.

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