How To Get A Business License In Idaho (2024 Guide)

In Idaho, there is no all-encompassing state business license. Instead, business licenses are issued by state agencies and local city and county clerks’ offices. Not every business that operates in Idaho needs a business license either. This means that the business licensing requirements in the state are dependent on where your business is located and what your business does. For example, cities such as Boise and Idaho Falls have their own business licensing requirements.

Depending on the type of business you’re operating, you may need to get multiple business licenses or permits at the local, state and/or federal levels. One permit that you’re likely to need is a seller’s permit: all businesses in Idaho that sell taxable goods or services will need to obtain a seller’s permit (also called a sales tax license).

Fortunately, the state of Idaho has a State & Federal Resources for Business website that can help make this process easy for you. This website has a Business Wizard to help you determine which licenses and permits your business needs to operate in Idaho, as well as any taxes that may apply to your business.

In Idaho, some licenses are issued by state agencies and others are issued locally. Figuring out what business licenses are necessary for your business is dependent on the type of activity your business will be doing and its location. It’s also important to note that some business activities are regulated by the U.S. government, meaning you will also need to register for different licenses and permits with the relevant federal agencies.

Idaho’s state government provides several helpful online resources to help you determine what business licenses you need for your business to be compliant with state and local requirements. If you’re still not sure whether or not your business will need a license, or if you have any additional questions about getting a business license in Idaho, reach out to the local city clerk’s office in the town or city where your business will be operating.

State-Level Licenses and Permits

If your business does an activity that is regulated by a state agency, you will need to obtain the appropriate license or permit from the appropriate state agency. For example, businesses involved with agriculture, fish and wildlife, the sale of alcoholic beverages, or transportation and logistics will need to obtain licenses and permits from the state of Idaho to conduct business.

Since state agencies only issue licenses and permits for specific activities that fall under their jurisdiction, you may have to file applications with one or more state agencies depending on your business’s activity. The aforementioned Business Wizard on the Idaho State & Federal Resources for Business website is a great tool to use to make sure your business has the proper business licenses necessary for you to operate in Idaho.

Local Business Licenses and Permits

Different cities and counties in Idaho vary in their business license requirements. For example, if you’re doing business in Idaho Falls, you’ll need to obtain a business license from the city to sell alcohol, operate a taxi company, operate a food truck, or run a child care facility. Nampa and Boise also require local business licenses for various types of business activity, but there’s no general rule since the local requirements for a business license vary from city to city.

No matter what type of business you have, call or check the websites of the city and county your business will be operating out of to make sure you have the correct business licenses.

Idaho Seller’s Permit

In Idaho, businesses making retail sales are required to have a seller’s permit. This allows your business to collect sales tax and ultimately forward the tax to the state via your regular sales tax returns.

To get the Idaho seller’s permit you’ll need to complete the Idaho Business Registration application, also known as the IBR-1. There is no cost to fill out this document, and if you submit your application online, you’ll receive the permit in about ten days. For mailed applications, the permit can take up to four weeks to arrive.

If your business has several locations throughout Idaho that all operate under the same business name, you only need to fill out the IBR-1 once and you will get separate sales tax permits for each location. However, if each location has a unique name then you will need to register them separately.

Professional and Occupational Licenses

Although not every business in Idaho is required to get a business license, there is a wide range of professions and occupations that are required to obtain an Idaho Professional License before they can sell their services to the public. For example, appraisers, therapists, HVAC engineers, and driving instructors will need to apply for a state license from the appropriate regulatory board to operate in Idaho.

The list of professions and occupations that require licensing is extensive but, generally, you’ll need to be licensed by the state of Idaho if you’re in any of the health professions or if your business is involved in construction or real estate in addition to a host of other occupations.

Idaho’s Division of Occupational and Professional Licenses has a handy website with a list of many of the occupations and professions in the state that require an Idaho Professional License. You can also find links to the state regulatory boards of these occupations and professions directly from that state website. These websites contain information on license requirements, the appropriate application forms, and links to renew your license online.

Before you apply for a business license in Idaho, you’ll want to have your business name and legal structure established. That way you won’t have to go through the trouble of revising your business license in the future.

Register Your Business in Idaho

All businesses in Idaho must register their business name and legal structure with the Idaho Secretary of State’s office before doing business in the state. Sole proprietorships, general partnerships, corporations, and limited liability companies (LLCs) are all required to register with the state.

If you’re registering a sole proprietorship, you only need to file your assumed business name with the Secretary of State’s office. This form costs $25 to file online. General partnerships will need to file the same form, as well as a Statement of Partnership Authority, which costs $100 to file online.

If you’re registering an LLC or a corporation, you don’t need to file for an assumed business name. The business name used on the Certificate of Organization articles of incorporation will be registered. The Idaho Secretary of State charges $100 to file the Certificate of Organization online and $120 to file by mail.

You should search for available (not in use by another business) business names in Idaho to make sure you can use your desired business name. It’s worth taking the time to ensure that your desired business name is different from and not trademarked by any other businesses operating in Idaho. You can also file the Application for Reservation of Legal Entity Name with the Idaho Secretary of State for just $20 ($40 if you file a paper form) and reserve your name for four months.

Fill Out the IBR-1

If your business will have employees or make retail sales, you’ll also need to fill out the IBR-1—the Idaho Business Registration application. There is no cost to fill out this document, and if you submit your application online, you’ll receive the permit in about ten days. Mailed applications can take up to four weeks to arrive. To fill this out correctly, you will need the following:

• Business entity classification (type of business)
• Federal Employer Identification Number (EIN)
• All officers’ and owners’ Social Security numbers
• Legal business name
• Officer/owner titles and percentages of ownership
• All officers’ and owners’ home addresses and phone numbers
• Date and state of incorporation
• All previous withholding, sales, use, workers’ compensation insurance, or unemployment insurance account/permit numbers in Idaho
• Workers’ compensation insurance agent’s name and telephone number
• Workers’ compensation insurance policy information (if available)
• Date employees/corporate officers started working in Idaho
• Amount of wages paid or expected to be paid every quarter

Information about the application can also be found online on the Idaho State Government’s business website.

Contact the City Clerk’s Office and Other Relevant Agencies

Once you’ve filed the appropriate paperwork to register your business in Idaho and obtained the Idaho seller’s permit, you should get to work on getting your business license.

Depending on the location of your business and the industry you’re in, you may need to get business licenses at the local, state, and federal levels. The best way to figure out which licenses you’ll need is through the Business Wizard and by reaching out to your city clerk’s office. You should also know enough about Idaho’s regulations in your industry before you start your business.

Massage therapists, barbers, CPAs, doctors, electricians, contractors, therapists, businesses selling alcohol, chiropractors, radio station operators, dentists, physical therapists—and many more occupations—will need to obtain some combination of an occupational license, a local business license, a state business license, and a federal business license.

Professional licenses, such as the one needed for dentistry, have strict requirements that can include education, experience and the passage of a state certification exam. Local, state, and federal business licenses and permits are not as strict in their requirements but they can require you to complete a background check, inspections, and federal fingerprinting.

In Idaho, you can apply for business and occupational licenses online, although you may have to complete some requirements in person. The same rule applies to business licenses and permits at the federal level. If you have all the proper documentation you need for your application, you can usually get your license in 30 days.

You can find the application materials on the relevant Idaho regulatory board’s website, your local city or county clerk’s website and the websites of other state and federal agencies and licensing boards that oversee your industry.

The Idaho Sales Tax permit is free. Beyond that, the fees for obtaining a business license in Idaho vary depending on the type of license you’re getting and where you’re operating your business. Not including administrative fees, business licenses in Idaho can cost anywhere from $20 to more than $500.

For example, the application fee for a Pharmacist License is $140, plus a background check fee of $28.25. Aspiring geologists must pay a $100 application fee, a $20 original license fee, and a $250 exam fee.

Another comparison that illustrates this point: A child care worker’s license in Boise costs $37 and $20 in Idaho Falls. The cost for a child care facility license application also varies by location. Child care centers (13 or more children) require a $225 payment for the license application in Idaho Falls and just $135 in Boise.

The Idaho sales tax Permit does not need to be renewed. Once you obtain it, you can pretty much consider it taken care of. However, occupational licenses require regular renewal, and some state and local business licenses will also need to be renewed after a period of time. You can renew your licenses online in most cases, and you may also need to pay a renewal fee depending on the kind of license or permit your business has.

Even if you think you’re going to get a renewal notice, you should check with the relevant state or city office to make sure you understand all the renewal requirements for your business. It would be a costly and time-consuming process to obtain all the business licenses and permits for your business a second time.