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Idaho · How-To Guide

How do I get a business license?

Idaho Secretary of State (entity formation) / Idaho State Tax Commission (sales tax permit) / City/County for local business licenses
Step by Step

How to do it

  1. Determine your business structure: sole proprietor, LLC, corporation, partnership
  2. Register your business entity with the Idaho Secretary of State (for LLCs and corporations) at sos.idaho.gov/business-entities - file online (Idaho Business Registration System - iFile)
  3. Obtain an EIN (Employer Identification Number) from the IRS at irs.gov if forming an entity, hiring employees, or operating as a partnership
  4. Register with the Idaho State Tax Commission for a Seller's Permit / Sales Tax Permit if you sell taxable goods or services in Idaho - register online at tax.idaho.gov; free to register; required to collect and remit Idaho sales tax
  5. Register with the Idaho Department of Labor for unemployment insurance if you have employees; also notify Idaho Industrial Commission for workers' compensation
  6. Check with your city or county for local business licenses - most Idaho cities require a local business license; county requirements vary; unincorporated areas may not require a separate county license
  7. Check for industry-specific state licenses: contractors (Idaho Contractors Board - dopl.idaho.gov), health professionals, real estate agents, cosmetologists, and many others require licenses through the Idaho Division of Occupational and Professional Licenses (DOPL) - dopl.idaho.gov
  8. Renew entity annual report with Secretary of State; renew local license per city schedule
Details

What you need to know

Required Docs
  • Business name and type of activity
  • Idaho business address (physical location)
  • Entity formation documents if LLC or corporation
  • EIN or Social Security number
  • Industry-specific certifications if applicable
Fee
LLC formation: $100; corporation: $100; annual report: $0 (Idaho does not charge an annual report fee - one of very few states); Seller's Permit: free; local business license: varies by city ($25-$200+) RENEWAL: Entity annual report: due annually (no fee); local license: annual per city schedule ONLINE OPTION: Yes - sos.idaho.gov/business-entities (iFile system); tax.idaho.gov (Seller's Permit); dopl.idaho.gov (professional licenses) WHERE TO GO: Idaho Secretary of State (entity formation); Idaho State Tax Commission (sales tax); DOPL (professional licenses); City Clerk or Finance office (local business license)
Online Option
Yes - sos.idaho.gov/business-entities (iFile system); tax.idaho.gov (Seller's Permit); dopl.idaho.gov (professional licenses)
Where to Go
Idaho Secretary of State (entity formation); Idaho State Tax Commission (sales tax); DOPL (professional licenses); City Clerk or Finance office (local business license)
County-specific variations apply

Idaho cities administer their own business licenses - Boise, Nampa, Meridian, Idaho Falls, Pocatello, Coeur d'Alene each have their own licensing requirements. County-level business licenses are not commonly required in unincorporated areas, but some counties may have specific permit requirements. Verify local requirements with your specific city or county.

Idaho Notes

Important state-specific details

  • Idaho entity annual report: NO FEE - one of only a handful of states that does not charge for annual report filings; this significantly reduces ongoing costs for Idaho businesses.
  • Idaho sales tax: state rate 6%; some cities add local option taxes; Idaho has no county sales tax.
  • Idaho DOPL (Division of Occupational and Professional Licenses): oversees 70+ professions - dopl.idaho.gov | (208) 334-3233; covers contractors, engineers, real estate, cosmetology, medical professionals, and many others.
  • Idaho Contractors Board: all public works contractors and private building contractors must be licensed - dopl.idaho.gov/boards/contractors.
  • Idaho has a state income tax (graduated rates 1-5.8%); businesses pay Idaho corporate income tax or pass-through to individual returns.
  • DBA (Assumed Business Name): file with the county where the business operates (County Recorder's office); $25 fee in most counties.
Official Source

State office contact

State Office
Idaho Secretary of State, Business Entities - sos.idaho.gov/business-entities | (208) 334-2300; Idaho State Tax Commission - tax.idaho.gov | (208) 334-7660; Idaho DOPL - dopl.idaho.gov | (208) 334-3233