How to Get an Idaho Business License

Do you need a business license in Idaho?

Unlike some states, Idaho does not have a state business license requirement. But certain counties and cities in the state may require a general business license for the businesses that operate there. You can contact your local city clerk’s office to determine whether it requires a general business license.

But even if you do not need a general business license in your city, you will likely need to apply for different business permits or occupational licenses, depending on the type of business you own and the specific licensing laws in your city. Here are a few types of licenses and permits you may need to get.

Industry permits and licenses

Depending on what industry your business is operating in, there may be special licensing or permits required at the federal, state, or local level. 

For example, most states require alcoholic beverage licensing for businesses serving or selling alcohol, in addition to a federal liquor permit. And you could also be required to obtain federal licenses if you operate in the agriculture, aviation, firearms, pharmaceutical, and transportation industries as well.

Seller’s permit

Any business planning to sell goods and services and collect sales tax is required to obtain an Idaho seller’s permit, also known as a sales tax permit, from the Idaho State Tax Commission. If you plan to open multiple locations for your business, you’ll need a seller’s permit for each location and the permit must be prominently displayed in the business.

Home occupation permit

If you’re a small business owner operating out of your home, you may need a special license called a home occupation permit. In Idaho, each city sets its own rules regarding which businesses need a home occupation permit and which do not. If you’re planning to open a home-based business, check with your city clerk’s office to determine whether you’ll need to apply for this type of license.

Occupational licenses

Professional licenses and permits are required for many types of businesses, and these licenses often need to be renewed at regular intervals, often annually. Medical professionals, doctors, attorneys, accountants, financial advisors, plumbers, electricians, and realtors are just a few examples of professionals who may need to obtain a business license or certificate relative to their line of work.

The Idaho Division of Occupational and Professional Licenses can provide assistance around applying for or renewing an occupational license.

Other licenses

Idaho, like many other states, may require you to obtain a license if you're building a structure to house your business or making improvements to an existing structure. Building permits, construction permits, zoning permits, and signage permits are just a few examples of the other licenses you may need to register for, depending on local laws.

Getting an Idaho business license: A step-by-step guide

Idaho business license regulations can vary wildly across cities, counties, and industries. The Idaho Secretary of State's office can guide you to resources specific to your situation. But in general, you can expect to follow some version of the steps below in order to obtain a license.

Step 1: Register your business

Before you can apply for licenses and permits, you’ll need to select an entity type for your business and register your business name with the Idaho Secretary of State’s office.

In Idaho, all business types, including sole proprietor ships, LLCs, and home-based businesses, must register their name with one exception: if you use your full name, including a middle initial, as your sole proprietorship name, you do not need to register your business name.

Step 2: Use the Idaho Business Wizard to search for special licenses and permits

One of the easiest ways to determine which licenses and permits your business requires is to use the Idaho Business Wizard tool, which is maintained by the Idaho Small Business Development Center. This helpful online tool can help determine which licenses you may need through a series of questions about your business type, industry, and operations.

To use the Idaho Business Wizard, follow these steps:

1. Use the checkboxes to select your business type. If none of the checkboxes accurately reflect your business type, contact your city clerk’s office for guidance.
2. Select your business category and then use the checkboxes on the right to select the business activities you’ll be engaged in within that category. For example, if you intend to open a bar, select “alcohol” as your business category and “bar - tavern or cocktail lounge” as your business activity. You can check as many business activity boxes as are relevant to your business.
3. Indicate whether your business will have employees, independent contractors, both, or neither.
4. Select your business entity (i.e. LLC, sole proprietorship, etc.)
5. Confirm your selections and hit “continue”.
6. Receive your list of permits and contact information.

Step 3: Register paperwork with the appropriate agency

Once you receive your list of licenses and permits, click on the links provided to be taken to the appropriate form and/or office where you can apply for your license.

It’s important to note that the Idaho Business Wizard will provide links to relevant forms and websites for licenses required by the state and federal government. However, since it does not take location into consideration in its results list, it will only provide guidance on what licenses might be required at the local level. In those instances, the Business Wizard will direct you to contact your local city or county office to determine whether those specific types of licenses are required.

Getting an Idaho business license the easy way

While the Idaho Business Wizard is a helpful starting point, it is intended as an informational tool only and does not guarantee that its results will be complete for every unique business situation. LegalZoom’s business license experts can provide you with a personalized list of every license and permit you’ll need on the federal, state, and local level so you can feel confident that your business is in full compliance with Idaho laws. Plus, we’ll remind you when your licenses are due for renewal. Let us take care of the logistics so you can focus on your business.

FAQs

What should I do before getting a business license in Idaho?

Before applying for licenses for your business, you need to register your business name in Idaho. But before you can do that, you’ll need to make sure your intended business name is available by conducting an Idaho business entity search.

A business entity search is important as it ensures your business name isn’t already being used by another entity. If you register a business name that’s too close to another name, you run the risk of legal troubles, including potential trademark infringement. It’s also likely that the Idaho Secretary of State won’t approve your business name registration if your name doesn’t comply with state naming regulations.

You can perform a business entity name search on the Idaho Secretary of State’s website.

How much do business licenses cost in Idaho?

Fees to obtain business licenses in Idaho will vary widely depending on the types of license you’re applying for and where you’re applying for it.

For example, there is no fee to obtain a seller’s permit in Idaho. Many cities in Idaho don’t require a general business license, but in the ones that do, the cost can vary considerably. A general business license in the city of Eagle, for example, costs $25, while the city of Bonner’s Ferry charges $50. The city of Lewison, ID, meanwhile, has a business permit fee as low as $1 for certain types of commercial and home occupational businesses.

How long does it take to get a business license in Idaho?

Just as the fee for a business license can vary according to the type of license and the issuing agency, so can the time frame for receiving it. As a reference, getting a general business license in the city of Lewison can take up to 15 business days, while business licenses that require fingerprinting or criminal background checks can take up to 6 weeks.

Many cities in Idaho allow business owners to register for a license online, which may expedite the process in some cases. It can be a good idea to talk to your city clerk or issuing agency to determine how long it will take to obtain your license.

Why do you need a business license?

Business licenses ensure that your business is compliant with federal, state, and local regulations and show the general public that you’ve followed all the necessary laws required to operate your business safely and lawfully in the state of Idaho. It’s important to obtain and renew the specific types of licenses you need to keep your business in good standing and avoid fees and other penalties.