Starting a small business in Idaho is easier than most people think. However, along with forming your company, you may need to obtain a few business licenses and permits before you can legally begin operations.
The exact licenses and permits you will need depend on a couple of factors; namely, where your business is located and the type of activities it is engaged in. To help you get the licenses and permits your business needs to operate legally in the state of Idaho, we’ll go over everything you need to know about determining which licenses you need and how to get them.
So why are Idaho businesses required to get licenses and permits before they can open up shop? The main purpose of business licenses and permits is to ensure that your company complies with local, state, and federal regulations. What this looks like exactly will depend on the license/permit you’re trying to obtain, but proving compliance with required regulations is generally a key part of the process. And, to continue renewing your licenses and permits, you’ll have to maintain compliance as well.
As for the difference between business licenses and business permits, licenses typically grant businesses the authority to operate in a specific area, while permits regulate more specific activities. For example, a restaurant that serves food and beverages will need to acquire a health permit. In many cases, businesses in Idaho are required to have numerous licenses and permits before they can begin operations, so it’s important to do your research ahead of time to pinpoint exactly what your business will need.
Your business’s location and the activities that it engages in are the two primary factors that will determine which licenses and permits you have to acquire. That said, there are a range of licenses and permits issued by local, state, and federal authorities that Idaho businesses are often required to have. Here are some of the types that are commonly required:
In addition to a local business license, your business may also need specialized permits. Some common permits that Idaho businesses often require include:
To see a comprehensive list of federal permits and licenses, you can check out the Small Business Administration (SBA) federal licenses and permits page.
The exact process for obtaining business licenses and permits in Idaho ultimately depends on which ones you are trying to acquire. Generally speaking, though, here is what the process looks like for both local and federal licenses:
The first step is to figure out which licenses and permits you need, at both the local and federal level:
You can find more information and application forms for Idaho’s business licenses on the Idaho Secretary of State’s website. For federal licenses, check out the SBA’s federal licensing page.
Once you know which licenses and permits you need, the next step is to submit all the documents required to apply for them. In many cases, you may need to pay an application fee as well. What documents are required (as well as the fee required) will depend on the license you’re applying for.
Since Idaho does not have a state-level business license, general business licenses are instead issued at the local level. To determine if your local government requires a business license and for instructions on how to apply if they do, you can contact your city or county clerk’s office. They’ll be able to provide more information on licensing requirements, fees, and the application process.
For federal licenses, each agency has its own requirements and application process, so you should consult the agency that issues the license your business needs to determine how to apply.
Approval times for business licenses and permits will vary. Federal licenses, for example, tend to take several weeks or more to process. General business licenses in Idaho, meanwhile, can have a lot of variation in how long they take to process since they are issued at the local level. Depending on the license/permit you’re applying for, you may be able to track its application status on the issuing agency’s website. If not, you can always contact the agency directly to check its status.
Most business licenses will have to be periodically renewed. For general business licenses in Idaho, renewal requirements vary from one location to another, but annual renewal is the most common frequency. Keep in mind that most federal permits will have to be renewed as well.
Making sure you have the right licenses and permits is a vital part of starting a new business in Idaho. Since Idaho doesn’t issue a state business license (and some cities and counties don’t require them either, you may not even need any licenses or permits for your business. However, it’s important to check ahead of time with your local government to be sure. Likewise, be sure to consider which (if any) federal licenses and permits your business might need based on its activities.
You never want to begin operating your business until you are sure that you’ve obtained all required licenses and permits. Failing to do so can lead to consequences like fines, penalties, or even business closure. Be sure to always renew your licenses and permits on time as well since missing your renewal date can likewise lead to penalties.
Sole proprietors in Idaho are treated the same as any other business when it comes to business licenses and permits. In other words, if your city or county requires a general business license for LLCs and corporations, you’ll be required to obtain one as a sole proprietor as well. The same is also true for federal licenses and permits.
Yes, you will be required to renew your general business license periodically in most cases. Renewal frequencies will vary from one city/county to another, but annual renewal is the most common frequency.
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness. It also does not indicate any affiliation between Tailor Brands and any other brands, services or logos.
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