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Registering a new business in Idaho is one thing and making it operational is another. Some business entities are required to apply for a business license in Idaho in order to operate in the state. In some cases, a business entity requires just a permit to operate. The required license or permit in some cases may fall into a regulatory category and these are normally issued by different Idaho state agencies.

Idaho Business License Requirements

What are the requirements for obtaining a business license in Idaho? Which business entities require a license and which requires permits? How do you know what is required for your business entity? Who is the issuing authority for these licenses? These are some of the important questions that you might be confronted with and hence, we have created a guide that will help answer some of these questions.

The most important step towards acquiring a business license in the state of Idaho is identifying the type of business.

The Industry or Business Type

Which industry is your business entity a part of? In the state of Idaho, the requirement for a permit or business license is dependent on the type of industry. The industry or business type can be classified under:

• Manufacturing, processing, mining, and/or fabricating
• Agriculture/Animals/Water/Logging/Land Use
• Contractor improving real property
• Sales: Retail, wholesale, on-line sales
• Service businesses, including professional services and transportation

Let’s look at an example to understand this well.

EXAMPLE

If the business type is Services and can be classified as a restaurant establishment then you don’t require an Idaho company license. Instead you will require an “Eating & Drinking Establishment Permit”. The permit will be issued by the City Clerk’s Office of the specific county or city your restaurant is situated in.

If you are serving alcohol along with food and beverage business under services as type of business then you will require a business license to serve alcohol. The cost and type of business licenses will vary according to the city or county your establishment is operating from. Let’s look at the various licenses and permits for alcoholic beverages in Idaho Falls vs. City of Boise.

Idaho Falls

A business license in Idaho is mandatory for a restaurant or food establishment that is planning to serve alcohol in the premises. The license expires on December 31 and has to be renewed subsequently.

Alcohol in restaurant

• The license fee is $562.50
• The application has to be filed with the office of the City Clerk.
• The Alcohol business license will be issued by the Director of the Department of Law Enforcement of the State

On Premise Beer

• The license fee is $200

Alcohol catering

• If you are serving alcohol as a part of catering service then you won’t require a business license in Idaho.
• You will have to apply for an “Alcohol Beverage Catering Permit” though the catering permit is issued for a maximum period of three consecutive days and the fee is $20.00 per day.

City of Boise

A restaurant or food establishment serving alcohol must obtain a business license from the City of Boise. The license has to be renewed annually. It expires on December 31.

Alcohol in restaurant

• The license fee is $562.50
• The application has to be filed with the office of the City Clerk.
• The business license in Idaho will be issued by the Director of the Department of Law Enforcement of the State

On Premise Beer

• The license fee is $200

Alcohol catering

• If you are planning to sell alcoholic beverage at an offsite venue or during an event as a caterer then you won’t require a business license in Idaho.
• You will be required to apply for a permit. The permit application has to be filed with the Office of the City Clerk.

Essentially, the type of business license, the issuing authority, and licensing fee will depend on the city or county where your business is registered or based.

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As a state that has experienced a GDP growth of 4.8 percent, Idaho is ranked 7th highest in the country thanks to the annual growth rate of 2.7 percent. Whether you want to set up company in Idaho or transfer your business from another state, the state offers some of the best business incentives including tax credits and grants. The Gross State Product was recorded at $65 billion in 2017 and Forbes has ranked Idaho 14th best in terms of economic climate and 11th best in terms of growth prospects in the nation.

Why Choose Idaho for Incorporation?

Is company incorporation in Idaho the best business opportunity? Definitely! Idaho is one of the few states with a surprising economic turnaround story driven by streamlining of regulations, lowering of taxes, and bringing down government spending. The state government has implemented several beneficial programs for small businesses leading to an increase in the number of businesses getting incorporated in the state.

Now let’s take a look at some of the salient benefits that are responsible for fueling growth of small businesses:

• The Opportunity Zones program is aimed at small and medium sized enterprises. Incorporation in Idaho opportunity zones can provide businesses with the benefit of enjoying tax relief on the capital gains. List of opportunity zones
• Tax Reimbursement Incentive program is another beneficial program for businesses formed in the state. The salient aspect of this program includes a tax credit of a maximum of 30% on payroll, income, as well as sales taxes for a period of 15 years.
• Idaho’s State Trade Expansion Program (STEP) Grant provides financial support to those businesses that want to export to international markets. The grant reward can vary from a minimum of $3,000 to $15,000.

How do you incorporate in Idaho?

Is there a process through which you can set up company in Idaho? What type of documentation is required? Is the process tough? If you are confronted with these questions then the following steps will help you understand how incorporation works in Idaho:

Type of Business

You can form different types of businesses in Idaho and this includes Limited Liability Company (LLC), Domestic and Foreign Profit and Non-Profit Corporation, Professional Service Corporation, Limited Liability Partnership (LLP), Limited Partnership (LP), and General Partnership (GP). The first step towards company incorporation in Idaho is choosing the type of business you want to form. Know more

Business Entity Name

What is the next step in company incorporation in Idaho? The next step is to identify and reserve a name and this is done as follows:

• Naming Requirements: According to Section 30-21-301, Idaho Code, a corporate name should contain the words “incorporated,” “corporation,” or abbreviations like “inc.,” “corp.,” etc. Similarly, an LLC should contain “limited liability company,” “LLC” or “L.L.C.”
• Business name search: You need to search for a business name that is not in use currently. You can conduct name search here.
• Name Reservation: Once you have identified business entity name, you can reserve the name with the Secretary of State pursuant to Section 30-21-303, Idaho Code. Name reservations are valid for a period of 120 days.
• Name Registration: If you are foreign entity planning to set up company in Idaho then you will be required to register a business name with the Secretary of State pursuant to Section 30-21-301, Idaho Code.

Choose a Registered Agent

According to Section 30-21-401, Idaho Code, a domestic or foreign corporation or LLC in the state of Idaho will be required to maintain a registered agent. We are one of the respected registered agents in Idaho and will be responsible for initiating incorporation in Idaho through processing of all your documents including “Articles of Incorporation” for domestic corporations and “Foreign Registration Statement” for foreign corporations.

Articles of Incorporation and Foreign Registration Statement

You will be required to file “Articles of Incorporation” pursuant to Section 30-29-201, Idaho Code, if your business is a domestic corporation. You will have to file a “Certificate of Authority” pursuant to Section 30-21-501, Idaho Code, if it is a foreign business entity. In order to streamline the process of incorporation in Idaho, we can file documents on your behalf through the online process or through an expedited process.

Date Stamped Copies

As a part of the process of company incorporation in Idaho, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your corporation.

Costs and Fees associated with Idaho Incorporation

What would it cost to set up company in Idaho? Check Fees here!

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What could be the best news for any business? A competitive market, opportunity for exports, high demand, and tax incentives! This is exactly what you will benefit from when you register a new company in Idaho.

The economy of Idaho is one of the strongest and extremely growth oriented due to the following factors:

• Low taxes
• Balanced state budget
• Common sense regulatory environment

The Bureau of Labor Statistics has ranked the state as 3rd when it comes to projected job growth rate “The Tax Foundation” has also ranked Idaho 2nd lowest in property tax in the nation.

Advantages of setting up an LLC or Corporation

As one of the top registered agents in the state, we can help you register a new business in Idaho as this will ensure you are able to leverage all types of business gains and state provided incentives and grants. Let’s take a quick look at why Idaho is considered one of the best places for establishing a business:

Advantage#1: Salient benefits of Corporation or LLC formation

Corporation

• Independent Life: One of the salient advantages of an S Corporation in Idaho is that it enjoys an independent life. The business entity will continue operation undisturbed even if it experienced incapacity of one or more stockholders or faced the death of one of its stockholders.
• Investment Tax Credit: If you register a new company in Idaho then you can take advantage of this credit. The investment tax credit can offset almost 50% of your state income tax liability. It can also be carried forward for a period of 14 years.
• Change in Ownership: If you have formed an S Corporation in Idaho then sale, purchase, as well as gifting of stock can facilitate changes in ownership. The changes can take place without disturbing the ability of the corporation to conduct its business.

LLC

• Limited Liability: An owner of an Idaho LLC will be able to enjoy limited liability protection, which means claimants can sue the LLC and not the owner or investors.
• Flow through Entity: When you register a new company in Idaho as an LLC, it is considered to be a flow through entity, which means the LLC will not be subjected to corporate income tax.
• Flexible Profit Distribution: An LLC has the benefit of being able to select different ways of distribution of profits.
• No Minutes of meetings: Unlike a corporation, an LLC startup company Idaho will not be required to maintain any minutes of the meetings or resolutions.

Advantage#2: Business Tax Credits

Are there any other benefits for small and medium sized enterprises? When you register a new company in Idaho, your business entity will be able to benefit from several state based incentives that not only enable growth but make your business sustainable as well. One of the most beneficial is the business tax credits.

There are several types of business tax credits that your entity can qualify for after you register a new business in Idaho. Some of the top tax credits available to small and medium enterprises include:

• Small Employer New Jobs Credit: This credit targeted at a startup company in Idaho can provide businesses with an income tax credit from $1,500 to $3,000, every time a new job is created.
• Small Employer Capital Investment Credit: This is a type of credit for small businesses and it provides an income tax credit of 3.75 percent on any new equipment that is purchased in Idaho.
• Investment tax credit: This is another credit targeted at small businesses or startup companies in Idaho and provides an investment tax credit of 3 percent for qualifying businesses.

Apart from the above mentioned programs, there are several other business incentive programs in Idaho including Idaho Opportunity Fund, Work Force Development Training Fund, Personal Property Tax Exemption, TIF (Tax Increment Financing), 100% Production Sales Tax Exemptions, and Idaho Prime Rate Loan Program among others.

Are there any Disadvantages of Incorporating in Idaho?

When you register a new business in Idaho, you can be rest assured that there is a wide variety of business incentives to leverage but are there any disadvantages? There are limited numbers of disadvantages that are dependent on the type of business you register for example: the disadvantage of an LLC is that it will get dissolved when a member dies or if it undergoes bankruptcy. Similarly, incorporation may lead to higher overall taxes. These disadvantages are far outweighed by the benefits and advantages of forming a business in Idaho.

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If you form an Idaho business, will it experience business growth? Idaho is one of the few states that have witnessed high levels of economic growth in the last five years. The state also offers new businesses a strong infrastructure and a positive business environment, which is essential for the growth and success of every business.

The Idaho economy grew in by almost 9.96% in real terms during the period between 2012 and 2016 while the compound annual growth rate has been hovering around 1.92% per year. The real GDP of the state was recorded at $59.694 billion in 2016, which is a record of sorts.

We are one of the top Idaho registered agents and are familiar with all processes pertaining to the Idaho State and can provide information and assistance for successful set up of your business!

Let’s take a look at how you can form an Idaho business LLC or Corporation.

Idaho LLC Registration and Formation

LLC company formation in Idaho is governed by Section 30-25-201 of the Idaho Code. The procedure for registration and formation of LLC is as follows:

Step#1: Hire a registered agent

According to Section 30-21-402, Idaho Code, an LLC will be required to continuously maintain a registered agent in the state. Whether you are a domestic LLC or a foreign business entity, a registered agent is necessary to ensure the process of LLC formation is smooth. We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Idaho.

We are in compliance with all regulations in the State of Idaho.

Step#2: Name Reservation/Registration

In the state of Idaho, a domestic entity or a foreign business can operate or file documents for formation only after the process of reservation or registration of name is complete. A business entity name can be reserved under Section 30-21-303, Idaho Code for a period of 120 days. Foreign business entities will be required to register their name under section 30-21-304, Idaho Code. LLC company formation in Idaho naming requirements, highlight the fact that the chosen business name should be distinguishable from the name of any other entity on the records of the secretary of state.

Step#3: Certificate of Organization and Foreign Registration Statement

If you are planning to form an Idaho business LLC then the most important step is to prepare and file the right registration or business formation documents. In the state of Idaho, a domestic LLC can be formed and operated pursuant to Section 30-25-201, Idaho code. A domestic business entity will be required to file a “certificate of organization” with the secretary of state. On the other hand, a foreign limited liability company can be formed and operated pursuant to Section 30-21-502, Idaho code. A foreign business entity will be required to file a “foreign registration statement” with the secretary of state.

We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the LLC registration.

Should you have any questions regarding how to form an Idaho business, feel free to call us on 702-871-8678.

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Idaho Corporation Registration and Formation

How do you form a corporation in Idaho? There is a process through which you will be able to incorporate your business in the state. The process is as follows:

Step#1: Maintain a Registered Agent

According to Section 30-21-402, Idaho Code, a Corporation will be required to continuously maintain a registered agent in the state. Whether you are a domestic Corporation or a foreign business entity, a registered agent is necessary to ensure the process of registration of a Corporation is faster and easier.

We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Idaho. We are in compliance with all regulations in the State of Idaho and will assist you to form a corporation in Idaho.

Step#2: Name Reservation/Registration

In the state of Idaho, a domestic entity or a foreign business can operate or file documents for formation only after the process of reservation or registration of name is complete. A business entity name can be reserved under Section 30-21-303, Idaho Code for a period of 120 days. Foreign business entities will be required to register their name under section 30-21-304, Idaho Code. Company formation in Idaho naming requirements; highlight the fact that the chosen business name should be distinguishable from the name of any other entity on the records of the secretary of state.

Step#3: Articles of Incorporation and Foreign Registration Statement

If you are planning to form a corporation in Idaho then the most important step is to prepare and file the right registration or business formation documents. In the state of Idaho, a domestic corporation can be formed and operated pursuant to Section 30-29-202 of the Idaho code. A domestic business entity will be required to file “Articles of Incorporation” with the secretary of state. On the other hand, a foreign business entity can be formed and operated pursuant to Section 30-21-502 of the Idaho code. A foreign business entity will be required to file a “foreign registration statement” with the secretary of state.

We can help in streamlining the process of company formation in Idaho by filing documents on your behalf through the online process or through an expedited process.

If you have any questions regarding Idaho incorporation or LLC formation, you can simply visit the Idaho Business formation page.

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