With a very healthy business climate, Idaho is considered one of the best states in America to start a small business. The state is famous for its own natural heritage of woods and chemicals but has grown multifold in the last decade. The economy has needed a major boost while there has been huge growth in terms of workforce, science, and technology
There’s a growing potential for new businesses with huge scope for exports and trade within the state. Moreover, companies from different parts of the country are investing in the state to help Idaho grow economically. So, if you have been planning to register a business of your own in Idaho, here’s a simple guide.
10 Steps to Start a Business in Idaho
We have explained below the steps to follow to start and register a small business in Idaho.
1. Select a Business Idea
There are different businesses that are relevant to a specific location. Climate, demographics, and geographical diversity play a major role in different areas. Idaho is known for its chemical production, potato farming, papers, and gems. Do your research and see if you fulfill the requirements to start the business in Idaho.
2. Create a Business Plan
After you decide what kind of business you want to start, it’s time to plan up the business. The business idea should suit your interests and the goals you set. Planning the business will help you to stay motivated. A properly planned business attributes to strategizing the odds and targets.
Some of the topics that your business plan must address are the following:
- Initial and recurring costs
- Target customers
- Pricing plan
- How do you plan to promote your business?
3. Arrange Funds
If you have saved enough money for a business, that’s great, but if you haven’t, you will have to finance your business. If you plan to take a loan for your business, go through all possible plans from different banks. Plan your estimated sales and what you will need in order to break even. A proper financial plan will help you to see the right amount of money is getting in there and everything is evenly maintained.
4. Registering Your Business In Idaho
For any small business, it’s better to register as an LLC. Registering as an LLC will help you to stay protected against personal liability with increased credibility. LLCs are easy to set up in Idaho if you can register your business for under $100. LLC also allows you to manage easily with proper tax treatment.
If you are not interested in registering as a business entity, you will have to file a Trade Name called “DBA”. It is advised to visit the official business site of the government of Idaho and learn more about registering a business.
5. Taxes & Federal EIN In Idaho
To complete the legalization process of your business, you will require a Federal EIN. This will act as a Tax ID Number for your business against which you will be able to file your returns. To break up, the Federal EIN is used to identify a specific business in its federal tax filings. Getting a Federal EIN will allow you to hire employees or open a business bank account.
Important Idaho taxes are the following:
- Physical products need to be registered under the Idaho Sales Tax.
- Unemployment Insurance Tax if you hire employees.
- Employee Withholding Tax on behalf of your employees.
6. Open a Business Bank Account
You should have a dedicated business bank account to help you out with your transactions. Separate business accounts will help you to maintain your balances making monetary transactions simplified. This will help you to easily update your business accounts and tax files.
7. Setup Accounting
Maintaining a proper accounting system is important to track the performance of your business. Have separate accounts for different transactions and this will help you to simplify your annual tax filings. There is multiple accounting software available on the internet, but make sure your software is fulfilling your purpose.
8. Licenses & Permits For Idaho
You will need a number of licenses and permits in order to operate legally. In Idaho, your business should be legally compatible it should comply with federal, state, and local government regulations. You will have to obtain a number of business permits which include building permits, signage permits, fire permits, and more.
9. Buy a Business Insurance
Getting insured will help you minimize your risks and you can completely focus on your business. The recommended business insurance you should get in Idaho are:
- Liability Insurance
- Workers Insurance
- Professional Liability Insurance
Idaho mandatories small businesses to have worker’s compensation insurance by law.
10. Promoting Your Business In Idaho
Idaho is one of the least densely populated states in the United States. You have to be very precise about how you will market your business. For starters you need to have a web presence, so make sure you have a website and you are on popular social media handles.
Up next you need to work on your brand. Building a brand out of business will help you drive more business backed by your quality products and services.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.