Starting a Business in Idaho
Idaho's the cheapest PNW state to start in — $100 LLC, low taxes, light paperwork.
Informational only. This guide is general information for Pacific Northwest business owners and customers — not individualized legal, tax, or financial advice. Rules, fees, and rates change. Confirm details with the official sources listed below or with a licensed professional before acting.
Why Idaho is friendly to launch in
Flat 5.8% income tax, $100 LLC, no franchise tax, and a state government that genuinely tries to make filings simple.
Step 1: File the LLC ($100)
Use sosbiz.idaho.gov — online filing is usually approved in 1 business day.
Step 2: EIN from the IRS
Free, instant.
Step 3: Idaho State Tax Commission
Register at tax.idaho.gov for sales tax (6%) and withholding if you'll hire.
Step 4: Local licensing
Boise, Meridian, Coeur d'Alene, and Idaho Falls require basic business licenses — usually $25–75.
Step 5: Contractor registration
ICB registration is required for most construction trades ($45/yr), plus L&I-equivalent workers' comp through Idaho Industrial Commission.
→ Next: Pricing your services in the PNW.
Common questions
How do I register a business in Idaho?+
File your entity with the Idaho Secretary of State, then register with the State Tax Commission for a seller's permit if you sell taxable goods. Construction contractors register with the Idaho Division of Occupational and Professional Licenses.
Does Idaho require a general business license?+
Idaho has no single statewide general business license. Requirements come from your industry and your city or county — check both before opening.
Idaho pros in our directory
Browse verified Pacific Northwest businesses in these categories.