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How to Start a Business in Idaho

Rated by U.S. News & World Report as the most entrepreneurial state in the nation, Idaho is a great place to launch your business. Start your business today with our simple step-by-step guide and get on the fast track to financial and personal independence. If you get stuck along the way, connect with a business resources in your local area for help.

Steps to Starting Your Idaho Business

Step 1: Choose the Right Business Idea

The first step toward business ownership is deciding what kind of business to start. Look for an idea that suits your interests, your personal goals, and your natural abilities. This will help you stay motivated when the going gets tough and will greatly improve your odds of success. Need inspiration? Here were the most popular ideas among our Idaho visitors in 2017:

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Find the Right Business Idea for You

Our free Business Ideas Tool will help you identify great businesses that match your interests and lifestyle.

Business Ideas
Tool

Step 2: Plan Your Business

Successful businesses are built through careful planning. Before committing a significant amount of money and other resources toward your business, critically analyze your idea and create a game plan. At a minimum, you should have good answers to the following questions.

Product Development
What problem does your business solve? What will set your product or service apart from the competition?

Sales & Marketing
Who are your potential customers? How will you get their attention and convert them into buyers?

People and Partnerships
What roles will you need to hire and what professional relationships will you need to form in order to succeed?

Financial Planning
How many clients or sales will you need in order to break even? How much money will it take to get there, and where will you get the funding?

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Start Planning

Our Business Planning Guide helps you analyze your business idea and gets you access to free planning tools.

Need Help? Find organizations in your local area that can assist you with planning.

Step 3: Form your Business

Registering your company as an Idaho business entity, such as an LLC or a Corporation, has two major advantages:

  • Increased credibility
  • Protection from personal liability in the event your business is sued

For most small businesses, registering an LLC is a great option. In comparison to other business entities, LLCs are easier to set up and manage and they have favorable tax treatment. You can set up an LLC in Idaho for as little as $100.

If you choose not to register your company as a business entity, you will be held personally responsible for the debts and liabilities of your business. In addition, unregistered business owners may need to file a Trade Name, also known as a "DBA." Find out if your business is required to file a DBA.

Step 4: Register for Taxes


With limited exceptions, most businesses require a Federal EIN, also known as a Tax ID Number. An EIN is used to identify a business in its federal tax filings. Without an EIN, you can't hire employees or open a business bank account.

Obtain an EIN

You should also be aware of important idaho taxes that may apply to you business:

  • If you are selling a physical product, you’ll typically need to register for Idaho Sales Tax.
  • If you hire employees, you will have to register for Unemployment Insurance Tax, and Employee Withholding Tax on behalf of your employees.
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Register for Idaho State Taxes

Sales Tax | Unemployment Insurance Tax | Withholding Tax

Step 5: Create Business Banking and Credit Accounts

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

You can protect your business with these two steps:

1. Opening a business bank account:

  • Separates your personal assets from your company's assets, which is necessary for personal asset protection.
  • Makes accounting and tax filing easier.
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Recommended: Get $200 when you open a business checking account with Chase. Learn more.

2. Getting a business credit card:

  • Helps you separate personal and business expenses.
  • Builds your company's credit history, which can be useful to raise capital later on.

Step 6: Set Up Accounting

An accounting system helps you track the performance of your business and simplifies annual tax filings. Quality accounting software lets you download your bank and credit card transactions, making accounting fast and easy. Learn more about the importance of accounting and how to get started with accounting today.

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Recommended: FinancePal is a one stop shop to meet all your accounting and tax filing needs.

Step 7: Obtain Permits and Licenses

To operate your new business legally, you will need to comply with federal, state, and local government regulations. In many cases, this involves obtaining one or more business permits and/or licenses. For example, a restaurant will likely need health permits, building permits, signage permits, etc.

Step 8: Get Insured

Business insurance helps you manage risks and focus on growing your business. The most common types of business insurance you should consider are:

We recommend that all small businesses, including home based businesses, purchase a general liability policy. Businesses selling professional advice or services, such as consulting and accounting firms, should also consider a professional liability policy. In Idaho, businesses with one or more employees, including LLC members and corporate officers, are required by law to have workers compensation insurance.

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Our recommended insurance provider can set you up with an insurance policy that is right for your business

Get a Quote

Step 9: Define Your Brand

The strongest and most memorable businesses are built on a solid brand.

When developing your brand, think about what your business stands for. What are the core values that drive your business? Customers and clients are looking for companies that have a compelling brand, as much as they are shopping for high quality products and services.

Learn more about branding and how to build a brand for your business.

Step 10: Establish a Web Presence

A professional website is critical to the long-term success of your business, regardless of what industry you are in. A website allows potential customers to find your business online and discover the products or services you offer, and it also enhances your business’ credibility.

In addition to a website, you should also consider other avenues for promoting your business online:

  • Setting up social media profiles (Facebook, Twitter, etc)
  • Creating accounts on review sites (Yelp, Google Reviews, etc)
  • Registering for a local Google profile
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More than ever, people are looking for reviews before doing business. Yelp is an important aspect of social validation for your business, claim your page today and get $300 in Yelp advertising credit.

Sign up for our Business Center

Sign up for a free Business Center account for access to tools, legal documents, and discounts that will help you start and grow your business

Signup Now

Get Help From Local Resources

To help you start your business, we have identified the best resources across the state of Idaho that can support you in your entrepreneurial endeavors.

Select your Region

Boise Local Resources

Idaho Zions Business Resource Center

Here are the Principle Service Areas:

  • Mentoring
  • Business Planning
  • Fundraising
  • Research

Offers Free Service

Description

The Idaho Zions Business Resource Center offers free service for entrepreneurs who are in the beginning stages of developing their ideas; they offer free class packages on basic business skills, as well as scheduling counseling appointment with their staff members for one-on-one interaction.

CONTACT INFORMATION:

800 W. Main Street, 6th Floor
Boise, ID 83702
208-501-7449
karen.appelgren@zionsbank.com

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See more business resources in Boise

Boise Resources

Coeur d'Alene Local Resources

Innovative Collective

Here are the Principle Service Areas:

  • Mentoring
  • Networking

Offers Free Service

Description

Innovative Collective hosts various weekly events that promote community and network opportunities for entrepreneurs in the area. In addition to some free to public events, there are also member-exclusive resources, such as mentorship and capital.

CONTACT INFORMATION:

418 East Lakeside Avenue, #7
Coeur D’Alene, ID 83814
208-269-5545
INFO@INNOVATIONCOLLECTIVE.CO

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See more business resources in Coeur d'Alene

Coeur d'Alene Resources

Idaho Falls Local Resources

Idaho Innovation Center

Here are the Principle Service Areas:

  • Mentoring
  • Coworking
  • Networking

Description

Idaho Innovation Center operates as both an incubator and an accelerator through providing a wide variety of coworking spaces and other amenities.  Their facility range from spaces that that can accommodate teams of a few to spaces with several thousand square feet.  Other resources such as conference space and office supplies are on board as well, and the center also provides opportunities for one-on-one mentoring and various entrepreneur-oriented events.

CONTACT INFORMATION:

2300 North Yellowstone
Idaho Falls, ID 83401
208-523-1026

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See more business resources in Idaho Falls

Idaho Falls Resources

Pocatello Local Resources

Region V SBDC

Here are the Principle Service Areas:

  • Mentoring
  • Business Planning
  • Financial

Offers Free Service

Description

The greatest strength of the SBDC is their free, confidential, 1-on-1 business mentoring for anyone who seeks it. Sometimes in order to be considered for mentoring from one of their professional business advisors, you may have to attend a class/workshop or at least present your business plan. SBDC's are located all throughout the state and you should use the SBDC closest to your location if possible, but you can often transfer to a different location if they do not fit your needs.

CONTACT INFORMATION:

921 8th Avenue, College of Business
Pocatello, ID 83209

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Pocatello Resources

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