Business licenses, also called sales tax permits, are a legal requirement for doing business in the state of Idaho. All businesses require a sales tax permit to do business in Idaho by law.
How much is a business license in Idaho? Business license applications in Idaho cost $25 to process, though each Idaho city or town could different individual rates. Business licenses are a necessary requirement to do business in the state of Idaho, and all businesses must register for a permit with their city or town office.
Business licenses or sales tax permits allow a business to buy, sell and pay tax to the state of Idaho. Without a business license, a business could be forced to close by the authorities until the right licensing has been obtained. Idaho has no state-wide tax license like other states.
How To Get A Business License In Idaho
If you’re thinking of starting a business in Idaho, you’ll need to obtain a business license from the state. The process is not overly complicated, but there are a few steps you’ll need to follow.
Here’s what you need to know about getting a business license in Idaho:
The first step is to register your business with the Secretary of State’s office. You can do this online or by mail. Once your business is registered, you’ll receive a confirmation letter that includes your business registration number.
Next, you’ll need to obtain a federal employer identification number (FEIN) from the Internal Revenue Service (IRS). You can apply for an FEIN online, by mail, or by fax.
All businesses that want to operate a branch or main office in the state of Idaho will require a business license. Business licenses are specific types of sales tax permits that allow companies to buy, sell, trade and pay legal tax to the state which they are in.
There is no general sales tax permit for the whole state in Idaho, like some other states. Instead, an applicant has to apply for a permit or license with the city or town in which the business intends to operate.
Sales and tax permit applications cost approximately $25, but charges might be different depending on which town or city the application is made in. A sales permit application is immediate, but can take up to 30 days to process according to state resources.
Successful applicants will receive a mail copy of their certificate within 30 days. Successful applications will also provide a temporary license that can be downloaded online.
Application fees are non-refundable, even in the case of an unsuccessful application.
Renewals work differently in Idaho than they do in some of the other states. Idaho business licenses do not expire, and only have to be applied for once if the terms of the business stay the same.
All businesses need a town or city-wide license to operate in Idaho. Specific extra licenses could be necessary for specific businesses, such as food, beverages, alcohol or entertainment – but the basic business license is always a first requirement before these licenses.
Where can I apply for a business license in Idaho?
Business licenses can be applied for online, or through your local town or city representative. Visit the official Idaho web portal at business.idaho.gov to download forms or find more specific licenses.
How long does a business license in Idaho take?
A business license application in Idaho takes approximately 30 days to process from its application date, though it can depend on your individual city or town.
When does a business license in Idaho expire?
Since there is no general business license for the state of Idaho, town or city tax licenses are how businesses conduct legal operations in this state. Business licenses in Idaho do not expire, though individual cities or towns could have terms that differ from this rule.
Types of Business Licenses in Idaho
| A Sales Tax License | A sales tax license is another name for the general business license that most businesses will need to trade with in Idaho. |
| A Food License | A food license is only required for any businesses who work with the handling, processing or direct sale of food and beverage items. A sales tax license is still needed in Idaho. |
| A Nonprofit | A nonprofit license allows Idaho charities and nonprofit organizations to conduct legal business in the state. |
How do I register for a nonprofit license in Idaho?
Nonprofit licenses are a specific type of business license that allows a charitable company or charity to trade within the state. Registrations for special license types (like entertainment, liquor permits or nonprofit licenses) are done through the same city or town portal sites as licenses and renewals.
What if my business license is delayed?
Business licenses can take 5 days from some city and town offices, but might also take as long as 30. If a business license takes longer, Idaho state resources recommend following up with the application portal.
Idaho Business License Facts
• The state of Idaho lists as much as 160, 000 registered small businesses in the state, with more added each year.
• Small business accounts for 99% of all business types registered in Idaho.
• Idaho has repeatedly been ranked as one of the top US states for a business.
Getting a Business License in Idaho State
Idaho is ranked as one of the best states in the United States for new business, and there are a few differences that set registration in this state apart from others.
All businesses in Idaho require a town or city-level license for tax compliance. Sometimes, this type of license is also called a basic business license or a sales tax license. Sales tax is compulsory for all businesses in Idaho, even ones that do most of their business online.
Business licenses cost a minimum of $25 to apply for in the state of Idaho, but there is no general business license for the whole state. Instead, applicants have to approach their individual city or town office either online or in person to make an application.
Licenses might have to be renewed after one year, but general sales tax licenses for most Idaho cities don’t expire unless the terms or details of the business changes.
Here are the business license costs in other states: