Idaho is the 13th largest state in USA and it is known for a solid and differentiated economy, with developed industries like agriculture, tourism, IT and retail. The business climate allows entrepreneurs to set up easily their companies and benefit from varied advantages and programs offered by the government. Planning your business in Idaho may start with complete support offered by our team of company formation agents in USA, regardless of the chosen state. Additionally, we have prepared a general guide to company incorporation in Idaho, in order to show you how you can start your business there.

LLCs in Idaho

In agreement with the rules imposed by Idaho Secretary of State, the Business Entities Division, one can register a limited liability company in a fast and reliable manner. This kind of entity is an appreciated form of business by investors in Idaho. The registration starts with choosing the right name which must comprise LLC, L.L.C., or L.C. at the end of it. Just like in any other states, starting a business in USA is subject to an appointed agent who can be whether a resident or a company with establishments in the state of Idaho. Also, please keep in mind that an operating agreement is suggested when incorporating an LLC in Idaho.

Apply for EIN in Idaho

Each business, regardless of the chosen form, must register for tax purposes with the IRS (Internal Revenue Service) and apply for the Employer Identification Number or the EIN. The rules in this matter also concern that your LLC must obtain the EIN even if at the beginning there is no employee.

Sales tax in Idaho

The sales tax in Idaho is set at rates between 6% and 9%, concerning different cities, businesses, and the type of items and services sold. Please consider that there are cities which can collect a tax rate of 3%. If you want to open a company in USA, it is recommended to ask for information about the tax rates in the chosen state for business, including Idaho. Our USA company formation specialists can provide complete support and information. The good news is that there are also tax exemptions in Idaho, meaning that there is no sales tax for medicines for sale. As for the corporate income tax in Idaho, this is set at 7.4% which is applicable to the profits of S corporations and limited liability companies registered in Idaho.

Licenses and permits for companies in Idaho

Federal, local and state licenses and permits are needed for most companies in Idaho, depending on the activities developed on the market:

The US Small Business Administration or SBA issues the federal licenses for companies activating in agriculture, aviation, fishery, alcoholic beverages etc.;
SBA issues the licenses and permits for the maritime transportation;
The Bureau of Occupational Licenses issues licenses for real estate appraisers, specific doctors, therapists, and residential care administration, as some examples;
State licenses are needed for companies activating in construction, farming, retail, plumbing, and food industry.

The requirements for obtaining licenses and permits in Idaho can be explained by our team of consultants who can also provide assistance in matters of documents and formalities with the authorities in charge. Let us help you start your business fast and obtain the needed licenses in a short time.

Limited partnerships in Idaho

An LP in Idaho is the type of business which can be formed by both limited and general partners. It is good to know that a limited partnership respects the same requirements as a limited liability company, where a registered agent is mandatory when incorporating with the authorities in charge. We mention that in an LP in Idaho, the limited partner is not responsible for the business debts or other types of obligations. Even though the registration process is easy, you are suggested to ask for professional advice, in order to manage your business as fast as possible.

Franchising system in Idaho

Entrepreneurs from overseas have a multitude of business choices in Idaho, and one of them may refer to the franchising system. The franchise fee, the agreement, the length of the contract, the rights and the obligations are only a few of the concerns related to a franchise business in Idaho. The Federal Trade Commission in Idaho requires complete attention to certain terms and conditions of which we mention the Uniform Franchise Offering Circular which involves complete details about the business, including the financial terms.

Do I need insurance for my business?

Yes, it is recommended to pay attention to the conditions for obtaining a general liability insurance and protect your business from the start. Such an insurance is needed for any type of business in order to skip any damages that might affect the entire business at a certain point. Here are some details about why you should sign a general liability insurance for your business in Idaho:

1. Medical payments and property damage are covered by a general liability insurance;
2. Copyright infringement or advertising liability losses are also covered by such an insurance;
3. A workers’ compensation policy is needed for businesses having employees;
4. Malpractice claims can be protected by a general liability insurance.

Opening a business in Idaho is subject to different conditions and requirements, so it is recommended to have the support of our team of company formation representatives in USA.

Hiring employees in Idaho

Complying with the requirement for hiring staff for your company in Idaho is not complicated, however, it is recommended to pay attention to several conditions like verifying if the new employees can legally work in USA, reporting the new employees and register for social contributions with the entitled authorities, and pay attention to the workers’ compensation. As a general rule, the positions in the firm need to be announced, whether on the internet or in local newspapers. In terms of payment, the minimum wage is approximately $1,160/ month for employees in Idaho.

Accounting for LLCs in Idaho – What you need to know

All the bills and expenses need to be registered in the firm with the help of an accounting firm or department. It is often recommended to hire the services of an accountant in Idaho instead of opening an entire department. Bookkeeping, payroll, invoice transactions and annual financial statements are among the accounting matters mandatory for any kind of company in Idaho.

The Certificate of Good Standing for companies in Idaho

The Certificate of Good Standing is also known as the Certificate of Existence and it shows that the business is legally incorporated and is properly managed. Such a certificate is issued for all companies in Idaho and it is necessary before running the activities on the market. It is good to know that the Certificate of Good Standing can be solicited online from the official website of Idaho Secretary of State. All the requirements linked to the Certificate of Good Standing for companies in Idaho can be explained by our company formation representatives in USA who can offer support for documents preparation and related formalities.

Promoting the business in Idaho

Besides the social media channels which can be easily used for your business, one can benefit from the services offered by a marketing and advertising company in Idaho. It is also suggested to create a website and promote the activities of your firm established in the state.

Economy overview in Idaho

The amazing wildlife and the multitude of recreational opportunities have made Idaho a very appreciated touristic destination. Besides tourism, Idaho relies on developed agriculture, the energy sector, IT and manufacturing. As a foreign investor, one can take advantage of the favorable taxation system which is set to encourage the business environment as much as possible. We presented you a few statistics about companies and businesses in Idaho:

There are more than 494,000 companies registered in Idaho;
Around 90,000 represent the number of entrepreneurs activating as sole traders in Idaho;
Approximately 53,000 non-profit companies are registered in Idaho;
There are more than 150,000 small companies incorporated in Idaho by local and foreign investors.

Running a business in Idaho means taking advantage of a generous business climate and a stable economy, plus support for small and medium entrepreneurs. If you have decided on opening a company in Idaho, it is suggested to have a clear idea about the taxation structure which applies for each business form. Our company incorporation agents in USA can handle the registration procedure of your business and can offer essential information about the taxes you have to pay for your firm.

What is the corporate income tax in Idaho?

The corporate tax rate in Idaho is set at 7.4% and is applicable to limited liability companies and S corporations. In the case of LLCs in Idaho, the corporate income tax is payable as federal and state taxes on the income distributed for each LLC member.

What is the sales tax in Idaho?

The general sales tax in Idaho is set at 6% rate and it is imposed for products and services placed on the market for sale purposes. Here are a few details about the sales tax in Idaho:

• several cities in Idaho can impose their own sales tax besides the standard one;
• properties for rent or lease are subject to the sales tax of 6%;
• if the sales tax is not paid for the purchase of goods, a use tax of 6% is imposed;
• several products are not subject to a sales tax – prescription drugs, for example.

Knowing the tax regime in Idaho will help entrepreneurs decide on the business entity suitable for their activities. You may talk to our company formation specialists in USA for extra details in this sense. Also, a general guide to company incorporation in Idaho is at your disposal if you are interested in opening a firm in this state.

Taxes for partnerships in Idaho

Partnerships in Idaho must pay the federal and state taxes on the incomes distributed on each individual. We mention that the tax rate for each member of the partnership will depend on the overall taxable income in the taxable year. If you are interested in establishing a partnership in USA or if you want to open a company in USA, including in Idaho, you may talk to our advisors and ask for support.

Other tax facts for Idaho

The property tax in Idaho is imposed for farms, warehouses, offices, homes, property rentals for business purposes, office furniture, and equipment. It is good to know that there is no inheritance tax in Idaho. Domestic and foreign entrepreneurs have the possibility of paying the taxes on the official website of the Idaho Tax Commission.