Facts about Idaho Secretary of State, Idaho Secretary of State Compliance, Idaho Business and Idaho Business Entity Search
Starting or maintaining an Idaho business revolves around the Idaho Secretary of State. This is the branch of Idaho government that regulates Idaho businesses. The Idaho Secretary of State is sometimes referred to as: Idaho SOS for short. The Idaho Secretary of State keeps track of businesses in the state. This is your way of reserving your name, obtaining the right to do business in the state of Idaho, and having proof that you have established an Idaho business. The forms you file with the Idaho Secretary of State are what you can use to obtain a bank account, start a business, form contracts, get loans, and all other necessities of running an Idaho business.
Running a business in Idaho is fairly simple compared to other states. You do have to collect sales tax on items sold, but service providers do not have to charge tax on a service you provide, or the labor part of a job you do. You do have to pay a business income tax on the net income, but it is lower than most states. You do have to file articles with the Idaho Secretary of State. You do have to file an annual report, but it is free. You do have to maintain a physical address in the State of Idaho or have a Registered Agent.
There are different licenses needed for running different types of businesses. Most of them are fairly inexpensive. Unfortunately the different counties usually impose a “use tax” on some of your business property owned. If you pay personal property tax, business property tax, or use tax in your state you should not have to pay this. “Use tax and personal property tax” sure feels like a double taxation and hopefully someday will be illegal, but for now, almost every state charges it. Idaho has enacted legislation to eliminate the use tax, but it only will happen if other State revenues reach a certain point… which it doesn’t look like that will happen any time soon.
The following are some links to help find some of these Idaho State agencies:
Idaho business entity search:
Idaho taxation and registering your Idaho business: