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STARTING AND OPERATING A BUSINESS IN IDAHO Copyright © 2000, Michael D. Jenkins
CONTENTS OF THIS CHAPTER:
I. INTRODUCTION I. INTRODUCTION Idaho has a fairly typical tax and legal structure under which businesses must operate, but one that has proved to be a fertile environment for business growth, as evidenced by highly successful Idaho companies like Micron Technology and Albertson's. The state's hospitable business regulatory climate, very high literacy rate, low crime rate, and general prosperity (more millionaires per capita than any other state) make it a good place do start or relocate a business. Like most states, Idaho imposes an income tax, a franchise tax on corporations, a sales and use tax, various excise taxes, with property taxes imposed at the local level. There is no state franchise tax on corporations, no tax on intangible property, and no tax on business inventories. The state has also adopted a limited liability company (LLC) law and a limited liability partnership (LLP) law, so that businesses operating in Idaho in LLC or LLP form may now obtain the advantages of limited liability, without incorporating or becoming subject to corporate taxation, generally. At present, the state's economy is fairly healthy, in terms of the level of unemployment, which is close to the national averages, and other economic measures. For example, in February, 2000, the state's unemployment rate was 4.4%, just slightly higher than the national average of 4.1%. To view the latest federal Bureau of Labor Statistics unemployment rate data for Idaho or any other state, visit the BLS website. Idaho is noted for having the largest number of millionaires, per capita, of any state. II. LEGAL ENTITIES -- FILING FEES AND REPORTING REQUIREMENTS. (a) In General. A business that operates in Idaho can operate as a sole proprietorship, a general or limited partnership, a corporation, or a limited liability company. In addition, like the federal tax law, the state income tax law also recognizes S corporations, for income tax purposes, and generally allows the income or losses of an S corporation to "flow through" and be taxed or deducted at the shareholder level, rather than taxing the corporation itself as an entity. Idaho also provides for limited liability partnerships, in which no partner is liable for debts of the partnership, in general, as in the case of a corporation or LLC, but with fewer legal formalities than are required for either a corporation or an LLC. Each of the above entities is discussed below, along with the basic requirements for forming such an entity and any general ongoing (non-tax) reporting requirements that are applicable to it. The tax treatment of each form of legal entity is discussed in Section IV below. (b) Sole Proprietorships. In general, sole proprietorships in Idaho can be formed with no formalities. However, as discussed in Section IV(b), it will generally be necessary to obtain one or more local business licenses from cities or counties in which you operate and, in some cases, state licenses, as well. You will also have to register an assumed or fictitious business name, if your business operates under such an assumed name. No separate tax form filing is required, generally, for a sole proprietorship, under the Idaho income tax law. Instead, as with the Schedule C on your federal Form 1040, you simply report the net income or loss from your sole proprietorship on your state personal income tax return. See Section IV(c) for information on the Idaho income tax and filing requirements for individuals. As a sole proprietor, if you have no employees, you are not required to pay any unemployment taxes, withhold any federal or state income tax from wages, nor obtain workers' compensation coverage for yourself. (c) Partnerships. As a rule, general partnerships in Idaho can be formed with no formalities, although it is highly advisable to have a written partnership agreement. However, as discussed in Section IV(b), it will generally be necessary to obtain one or more local business licenses from cities or counties in which you operate and, in some cases, state licenses, for any type of partnership, including general or limited partnerships, or limited liability partnerships. A limited partnership, in which there is at least one general partner (who is liable for partnership debts) and at least one limited partner (who is not liable for partnership debts), may also be formed under Idaho law. Unlike a general partnership, a limited partnership must generally have a written partnership agreement, and must file a certificate of limited partnership with the Idaho Secretary of State. There is a filing fee of $100 to file the certificate of limited partnership, and foreign limited partnerships must also register and pay a $100 fee. For information on limited partnership filing requirements, see the contact information for the offices of the secretary of state, listed in Section VI(a). Limited liability partnerships (LLPs) are a new form of partnership permitted under the laws of Idaho. Like an LLC, an LLP provides limited liability for its owners, while retaining the tax advantages of a partnership for federal and Idaho state income tax purposes. However, unlike an LLC, an LLP typically operates like a regular partnership, and is not required to file articles of organization. To form an LLP in Idaho, you must register with and pay a filing fee of $100 to the Idaho Secretary of State. Foreign LLPs, those created under the laws of another state, must also register with the secretary of state and pay a fee of $100. For more information on LLP registration and reporting requirements, see the contact information for the offices of the secretary of state, listed in Section VI(a). Note that one potential drawback of LLPs, if you will do business in other states besides Idaho, is that some states, like California and New York, only recognize certain types of professional partnerships as LLPs. If yours is not a professional partnership, such other states may simply treat your LLP like an ordinary general partnership, with no limitation of liability. Idaho has enacted a new partnership law, repealing the current Uniform Partnership Act, effective January 1, 2001. Under the new act, an LLP will be able to file a single statement that will serve both as a statement of partnership authority and a statement of qualification as an LLP. Partnerships in existence before July 1, 2001, if they so choose, may elect to be governed by the new law's provisions after the law becomes effective. A partnership agreement, for any type of partnership, should spell out in considerable detail such matters as the following:
Partnerships, as entities, are not subject to state income tax in Idaho. Instead, the income or losses of the partnership, as allocated among the partners, must be reported on the personal income tax returns of the individual partners (or on the corporate tax returns of any corporate partners). Partnerships are required to file an annual tax information return with the state. For details on Idaho partnership tax return filing requirements, see Section IV(c). (d) Corporations. To form a corporation in Idaho, you must file articles of incorporation with the Idaho Secretary of State and pay a fee of $100. A foreign corporation (one formed under the laws of another state or a foreign country), must obtain a certificate of authority before it may legally conduct business in Idaho, by filing an application for a certificate of authority and paying a filing fee of $100. For more information on filing articles of incorporation or applying for a certificate of authority to do business in Idaho, see the contact information for the offices of the secretary of state, listed in Section VI(a). In addition, once your corporation is formed, it will be required to file annual reports between July 1 and November 30 of each year. Failure to file this report on a timely basis could result in suspension or revocation of your corporation's charter. No fee is charged for filing annual reports. In addition to paying federal income taxes on its income, a corporation that does business in Idaho must also file corporate income tax returns with the state. See Section IV(c) for a discussion of state corporate income tax rates and tax return filing requirements. There is no corporate franchise tax in Idaho. For tax forms and more information on corporate income taxes in Idaho, see the contact information for the offices of the Idaho State Tax Commission, listed in Section VI(a). (e) S Corporations. An S corporation is simply a regular corporation that has elected, for federal or state income tax purposes, or for both, to be taxed somewhat like a partnership, with its income, losses and tax credits flowing through to its owners, who report such income, losses, or credits on their individual tax returns. Idaho recognizes S corporations for income tax purposes, and treats them in a manner similar to the federal tax treatment. (f) Limited Liability Companies. Idaho, like every other state, has now adopted a limited liability company (LLC) law. Thus, in addition to the traditional choices of a sole proprietorship, partnership, or corporation, a business that operates in Idaho may also choose to operate in the form of an LLC. In most states, LLCs are very attractive entities for many small businesses, in that they offer the same protection as a corporation from creditors for debts of the business, while offering much of the flexibility plus the flow-through tax treatment of a partnership for federal tax purposes. See Section IV(c) for a discussion of the income tax treatment of LLCs under Idaho tax laws. To form an LLC under the laws of Idaho, one or more persons, who need not be members of the LLC, must file articles of organization with the secretary of state, which must be accompanied by filing fees of $100. The law is silent as to whether an LLC may have only one member, or if it must have two or more members. However, the secretary of state's office has indicated that one-member LLCs are permitted in Idaho, now that the law provision that formerly required at least two members has been repealed. Foreign LLCs, those formed under the laws of another state, must obtain a certificate of authority to do business in Idaho, by filing an application for a certificate of authority with the secretary of state and paying a filing fee of $100. In addition to initial filing fees, an LLC formed in Idaho or a foreign LLC must subsequently file annual reports each year between July 1 and November 30. For more information on filing articles of organization for an LLC, see the contact information for the offices of the Idaho Secretary of State, listed in Section VI(a). III. BUSINESS ACQUISITIONS (a) In General. When acquiring an existing business, there are a number of state legal and tax issues you or, preferably, your business attorney, should attend to before closing the purchase. These include matters such as doing a title search for any real property that is being acquired, checking for any recorded security interests on personal property items, and thoroughly researching county, state, and federal records for any judgment liens, tax liens, or other liens, before property is acquired. You will also benefit from consulting a tax advisor before the agreement of sale is negotiated, in order to seek a structuring of the agreement so that the purchase price is allocated among the assets in a way that favors you. You may be able to obtain considerable tax savings if the purchase price is allocated in a way that gives you the best possible tax results under federal and state income tax laws, and other state tax laws, such as sales/use tax or property tax laws. Depending upon the state (or states) in which the seller's assets are located, you may also have to comply with state bulk sale or bulk transfer laws. You should also obtain tax releases from various state taxing agencies, as discussed below. (b) Bulk Sale Laws. Typical bulk sale laws require either publication of legal notices to all creditors in advance of the sale and recording of such notices in some cases, or maintenance of detailed lists of the property to be transferred, for inspection by the public. Idaho is one of the states that has repealed its bulk sale laws, so you no longer have to be concerned with this requirement when buying a business in Idaho. (c) Tax Releases. When you acquire an existing business, you will want to make sure that you do not unwittingly become liable for any unpaid taxes owed by the seller. Typically, to protect yourself, you will need to receive a tax release or releases from various state taxing agencies, for such taxes as sales and use tax, income tax withholding, and state unemployment taxes, in each state in which the seller does business. If you fail to obtain such a release or written statement from the tax agency that the seller is not delinquent on any tax payments, you will be held responsible for such tax if it is not withheld from the purchase price proceeds and paid to the state at the time the sale of the business transpires. In Idaho, you should require that the seller obtain an unemployment tax release from the Employer Accounts Bureau of the Idaho Department of Labor. You should also request a tax releases from the Idaho State Tax Commission. Your request should identify the seller and either enclose a written authorization from the seller to release the tax information, or a signed copy of the purchase agreement. The Tax Commission will issue a tax clearance letter or summary of any taxes owed by the seller. (d) Unemployment Tax Rating of Seller. In addition to obtaining tax releases, you may find it advantageous to succeed to the seller's unemployment tax experience rating, if the seller has a tax rate lower than you would otherwise obtain as a new business. To obtain the seller's favorable experience rating as a successor employer, you will need to apply on a timely basis to the Employer Accounts Bureau of the Department of Labor, requesting that you be treated as a successor employer. IV. IDAHO TAXES AND OTHER GENERAL REQUIREMENTS. (b) State and Local Licensing. Nearly any business, operated anywhere in the United States, will have to have at least one government license of some kind. In most cases, this will be a local license, issued by your city or county. Before you open your business, contact your local city or county hall and find out if your particular business needs one or more local licenses. Most kinds of local business licenses are granted upon payment of a fee, with no further requirements, except possibly for annual or other periodic renewal fees. However, if you are engaging in any kind of food business, you will usually need to also obtain a health department permit and show that you are in compliance with health department food-handling requirements. In addition, be sure to check with an attorney or local government zoning or planning department officials to determine if your business will be in compliance with all local zoning and planning restrictions. If you own or rent any type of facility, you will generally need fire department permits, showing that you meet fire safety codes and any construction or improvements to an existing structure will usually require a building permit. If you intend to simply operate your business from your home, you may be in violation of local zoning requirements, but this is less likely to be a concern if you don't have clients, customers, suppliers, or employees coming to your house on business, on a regular basis. State governments have also traditionally required special licenses for many kinds of professionals, such as physicians, dentists, lawyers, and accountants. To further protect consumers, Idaho has expanded the list of occupations that must be licensed by the state to include many other occupations. Most state licenses not only require payment of fees, but are only issued for a given profession or occupation upon showing that you have completed certain educational or experience requirements, or passed certain tests, or some combination of the foregoing. You can simultaneously register in Idaho with the Idaho Department of Labor, State Tax Commission, and the Idaho Industrial Commission, for unemployment tax, state income tax withholding, and workers' compensation, on a single registration form, Form IBR-1, Idaho Business Registration Form. Registering for special taxes, such as for amusement devices, cigarette and tobacco taxes, fuel distributor taxes, and other taxes will require registration on other forms, any of which can be downloaded from the website of the State Tax Commission. For information on state licensing and business registration requirements in Idaho, see the contact information for the offices of the Idaho Department of Commerce, listed in Section VI(a). Also contact the Idaho Bureau of Occupational Licenses to find out if your particular kind of business requires a special state license. (c) Income and Franchise Taxes. Idaho has both an individual income tax and a corporate income tax, but no longer has a franchise tax on corporations. The Idaho individual income tax is imposed at a maximum tax rate of 7.8%, since 2001. Individual taxpayers generally pay state income tax on their business earnings from a sole proprietorship, or on their share of the earnings of a pass-through entity, such as a partnership, S corporation or LLC. The Idaho personal income tax return is Form 40, which must be filed with the Idaho State Tax Commission. Partnerships, or entities taxable as partnerships, such as LLCs, are not subject to state income taxation in Idaho, but must file an information return with the Idaho State Tax Commission each year, showing each partner's share of taxable income, losses, and credits, on Form 65. Individual taxpayers doing business as sole proprietors, or who are partners in partnerships, or members of LLCs, are not required to make advance payments of estimated Idaho individual income taxes, but may do so voluntarily. Idaho is the only state, other than Utah, that does not require estimated income tax payments by individuals who are subject to the state income tax. The Idaho corporate income tax rate, on corporations other than S corporations, is a flat rate of 7.6%, since 2001. There is a minimum tax of $20. The state corporation income tax return is Form 41, which must be filed with the State Tax Commission. Corporations are required to make estimated tax payments of their state corporate income tax in advance, if their tax liability for the year equals or exceeds $500. Estimated tax payments are due in advance, in four equal installments, on the 15th day of the 4th, 6th, 9th, and 12th months of the taxable year, on Form 41ES. In Idaho, a limited liability company (LLC), if taxed as a partnership for federal income tax purposes, will be taxed in the same manner for Idaho purposes, thus avoiding the possible double taxation of income that can occur with a corporation. Idaho has adopted the federal "check-the-box" regulations, which treat a one-person LLC as the equivalent of a sole proprietorship. Note that it is not always entirely clear whether an LLC is a "single-member LLC" LLC or not, in a community property state like Idaho, where the "single owner" is a married person and the LLC is owned as community property. Fortunately, the federal Internal Revenue Service (IRS) has taken a very lenient position in Rev. Proc. 2002-69, stating that the IRS will accept whatever choice the couple make, either to disregard the LLC as an entity (treating it as a "single-member LLC") or to treat it as a partnership between the husband and wife. Presumably, the couple's choice of federal tax treatment will also apply for state tax purposes, since Idaho follows the federal tax treatment of LLCs, generally. However, where the LLC is owned by a husband and wife as joint tenants, or tenants in common, or as tenants by the entirety, it is unclear whether the IRS treatment would be as lenient as for community property owners, since the IRS has not issued any published rulings on whether an LLC can be a disregarded entity if held in one of the various forms of tenancy by a married couple, rather than being held as community property. (d) Sales and Use Tax. Idaho imposes a general sales tax on retail sales of tangible personal property and certain other sales, such as admissions, at the statewide rate of 5% (temporarily 6% from May 1, 2003 until June 30, 2005). There are generally no local sales taxes, except that certain resort cities have limited authority to enact local sales taxes to develop local tourism. General local sales taxes of 1% or 2% have been enacted only in Ketchum, Lava Hot Springs, and Sun Valley. Stanley has a 5% local tax on lodgings and liquor by the drink. There is a statewide additional 2% sales tax for hotels, motels, and campgrounds and a local auditorium tax in Boise. Sellers are required to obtain a seller's permit and to collect and pay over the sales and use taxes to the Idaho State Tax Commission. Any business that makes two or more sales at retail in a twelve-month period is considered a retailer and is required to register. You can register on Form IBR-1, Idaho Business Registration, which can also serve as your registration as an employer for state income tax withholding. If you need only a sales tax permit and not a employer withholding permit, you can register instead on Form IBR-2, Idaho Business Registration. There is no fee for sales tax permits, but you may be required to post a surety bond of up to $10,000. There are numerous exemptions from the sales tax, the most important of which is the resale exemption. If you are a wholesaler or retailer who purchases goods that you will resell, your purchase of such goods may qualify as an exempt sale for resale. Similarly, if you sell goods to wholesalers or retailers for resale by them, your sale may also qualify as an exempt sale for resale. In any such transaction, the exemption is ordinarily available only if the purchaser gives the seller a valid resale certificate, certifying that the items are being purchased for resale, and not for use or consumption by the buyer. A shadow tax, the use tax, is also imposed at the same rate as the sales tax. It is primarily intended to tax property that is acquired from sources outside of the state, in transactions not subject to sales tax, when such property is used or consumed within Idaho. Use tax may also apply to items purchased on an exempt basis, such as for resale, if such items end up being used or consumed, instead of being resold. For more information on Idaho sales and use tax registration and compliance, see contact information for the offices of the Idaho State Tax Commission in Section VI(a). (e) Real and Personal Property Taxes. In Idaho, as in every other state, any business real estate you own will be subject to real property taxes. In general, there is little that you must do, unless you wish to challenge your assessed valuation, since the assessor will bill you for each year's property taxes as they come due. Idaho also imposes personal property taxes on tangible personal property. However, certain types of business personal property, such as business inventories, are exempt from personal property tax in Idaho. While Idaho generally taxes tangible personal property, it does not impose a property tax on intangible personal property, such as stocks, bonds, promissory notes, and other such paper assets. (f) Other Business Taxes. Idaho imposes a number of other taxes on businesses, including:
(g) Trade Names. A trade name, also known as a fictitious or assumed name, is any name used in the course of business that does not include the actual legal names of all the owners of the business. Thus, if your business goes by any name other than your own real name, it is operating under a trade name. The same is true of a corporation, if it operates under a name other than its legal name. A trade name might also be one that suggests the existence of additional owners, by using such words as "company," "associates," or "group." In most states where you do business, it will be necessary to register a trade, fictitious, or assumed name, so that people who do business with you can find out who the actual owners of your business are. You may also want to register any such trade name, as a means of protecting against other companies usurping that particular trade name. Idaho enacted "The Assumed Business Names Act of 1997." Under this law, any individual or entity that proposes to do business in Idaho under an assumed name must, before beginning to transact business, file with the secretary of state a Certificate of Assumed Business Name in a form prescribed by the secretary of state, listing:
Once filed, a certificate of assumed business name continues in effect for five years. It must be amended if the owners of the business change. The filing fee for the original certificate is $20, with $10 fees for amendments, or for a continuation certificate after five years. Consequences for not filing a certificate of assumed business name include not being able to maintain a legal action in the state courts and liability for damages plus attorney fees to any person who suffers a loss because of another person's failure to file a certificate when required to do so. V. EMPLOYER REQUIREMENTS IF YOU HAVE EMPLOYEES (a) Employer Registration and Withholding. If you have any employees, you will already be withholding federal income tax and FICA taxes from their wages. In addition, since Idaho imposes a state income tax on the income of individuals, you will need to also withhold Idaho income tax from the wages of your employees. Before you begin to pay wages, you must register as an employer with the Idaho State Tax Commission by filing Form IBR-1, Idaho Business REgistration, which can also be used to register for a sales tax permit. For more information on Idaho income tax withholding and registration requirements for employers, see the contact information for the offices of the State Tax Commission, listed in Section VI(a). (b) Unemployment and Other State Payroll Taxes. If your business employs one or more individuals in each of 20 weeks during any calendar year, you, as an employer will be required to pay state unemployment tax based on the amount of such wages paid. Employers subject to the Idaho unemployment tax must register with the Employer Accounts Bureau of the Idaho Department of Labor to obtain a registration number. New employers are required to pay tax at a rate of 1.5% in 2004 on the first $27,600 of wages paid to each employee After you have had employees for a while, you will develop an unemployment tax experience rating. This rating is based on the number of employees you terminate who then claim unemployment benefits and the amount of such benefits paid to those former employees, under complex formulas. The state will inform you when they have assigned you an individual tax rate based on your firm's experience rating. That rate may be higher or, if you have had relatively few benefit claims charged to your account, lower than the standard new employer tax rate you initially were paying. All state unemployment taxes are imposed upon you as the employer, and, under Idaho law, cannot be charged to your employees or withheld from their wages. For more information on your Idaho unemployment tax obligations as an employer, see the contact information for the offices of the Employer Accounts Bureau of the Idaho Department of Labor, listed in Section VI(a). (c) Workers' Compensation. Workers' compensation insurance is a state-mandated insurance requirement for most employers, in almost every state. In Idaho, virtually all businesses with one or more employees are required by law to have workers' compensation insurance, except those able to self-insure. Note, however, that a sole proprietor or a partner in a partnership is generally not considered an employee. Workers' compensation provides wage loss and medical benefits to employees injured on the job and it protects you, as an employer, from legal action for damages for injuries or job-related illnesses suffered by your employees. In effect, it is a "no-fault" insurance system for work-related injuries or illnesses. Thus, if you fail to obtain required workers' compensation insurance, and an employee is injured on the job, you will have opened yourself to unlimited liability and severe legal consequences, so it is very important to obtain workers' compensation insurance for your employees. Be aware that neither general liability nor health and accident insurance can properly substitute for workers' compensation insurance. As an employer, you must notify injured employees of their benefits and post a notice in the workplace informing your employees of their workers' compensation coverage. For more detailed information regarding your obligations as an employer under the Idaho workers' compensation laws, contact your insurance carrier or see the contact information for the offices of the Idaho Industrial Commission and the Idaho State Insurance Fund, which are listed in Section VI(a). (d) State Wage and Hour Laws. Some employees of certain small firms not engaged in interstate commerce are not covered by the federal minimum wage and overtime laws. However, even if few or none of your employees are covered by the federal wage-hour laws, because your firm does less than $500,000 a year in gross sales and the employees in question are not deemed to "...engage in (interstate) commerce...," they will still generally be subject to the Idaho wage-hour laws, which provide for a state minimum hourly wage that is currently $5.15 an hour. As with federal law, Idaho requires payment of time and a half for overtime hours worked, in excess of 40 hours a week. Note that, as under federal wage-hour laws, certain classes of executive, administrative, and professional employees are exempted from the Idaho wage-hour rules. Besides the federal wage-hour posters that you must display in the workplace, you must also display a state wage-hour poster, which you can obtain from the Idaho Department of Labor. In addition to wage-hour laws, most businesses are subject to federal child labor laws, which put numerous restrictions on the working hours and kinds of work in which minors under the age of 18 may engage. Your business must also be cognizant of similar state child labor laws, in Idaho, which limit the hours children under 16 may work, and prohibit children under 16 to work during hours when public schools are in session unless able to demonstrate mastery of the English language and certain other basic subjects. Employment of children under the age of 14 is even more strictly regulated by the state. (e) State Occupational Safety and Health Laws. Approximately half of the states have their own OSHA-like agency, charged with administering the state's own occupational safety and health laws. The remaining states have no such enforcement agency, and thus rely instead on the federal Occupational Safety and Health Administration (OSHA) to administer the federal job safety rules within such states. Idaho is one of the states that does not have its own local equivalent of OSHA. Note that while you may obtain a free safety consultation from federal OSHA experts, they must and will cite you for any violations they discover at your workplace. This is not the case in states with their own OSHA programs, where, if you request a safety consultation from the state agency and they detect violations, they will not cite you if you promptly correct the unsafe conditions. However, the Idaho Department of Labor sets safety standards and conducts safety inspections in Idaho. For information on your job safety and health obligations as an employer, required posters, and possible on-site safety consultations, see the contact information for the Boise offices of the Idaho Department of Labor, listed in Section VI(a). (f) Other Miscellaneous State Labor Laws. Other Idaho labor laws you need to be aware of, as an employer, include the following: (1) Wage payments to terminated employees. Idaho law requires you to pay an employee who quits or is terminated no later than the next regular payday or within 10 days, whichever is earlier. But if the employee requests earlier payment in writing, you must make payment within 48 hours of the request, not counting weekends and holidays. (2) Right-to-work laws. About half the states have enacted "right-to-work" laws, which guarantee that no person may be denied employment for refusing to join a union or for not paying union dues, thus banning either "union shop" or "agency shop" agreements, or both. In a union shop, an employee not belonging to a union may be hired but then must join the union, usually within 30 days. In an agency shop, an employee need not join the union but, to remain employed, must pay union dues. Idaho has a right-to-work law. (3) State anti-discrimination laws. In addition to complying with federal anti-discrimination laws, employers must also be aware of and comply with state civil rights laws in Idaho, and display a poster informing employees of their rights. You can obtain this poster and more information on Idaho anti-discrimination rules from the Boise office of the Idaho Human Rights Commission, at the address listed in Section VI(a). (4) Reporting new hires. Under federal welfare reform laws, employers in every state are now required to to report newly-hired (or rehired) employees to a designated state agency (the Idaho Department of Labor for Idaho employers) within 20 days after the date of hire. VI. STATE SOURCES OF HELP AND INFORMATION (a) Key State Agencies Contact Information. Unlike most other states, Idaho does not have a single agency to whom you can go to handle all your licensing and permitting requirements for your business under the laws of Idaho. Accordingly, you will need to contact the various Idaho government agencies that are mentioned in this book or listed below on an individual basis, to obtain needed forms, official posters, information and other assistance from each such agency. A list of addresses and other contact information for such key agencies is set forth below for your convenience. BUSINESS STARTUP INFORMATION. A key agency that can provide helpful information on getting your business up and running in Idaho is the state's Department of Commerce. Request their booklet, Starting a Business in Idaho.
EMPLOYER WITHHOLDING. Contact the Idaho State Tax Commission, at the address listed above, in order to register as an employer, for purposes of Idaho income tax withholding. STATE UNEMPLOYMENT TAX. Contact the following state agency to determine whether you are an employer subject to payment of state unemployment taxes, for registration as an employer, or about succeeding to a seller's unemployment experience rating.
STATE OSHA PROGRAM. There is no state OSHA program in Idaho. The federal government provides federal OSHA enforcement instead. For required posters and information on federal occupational safety and health laws that affect you as an employer in Idaho, contact:
(b) Small Business Development Centers. A number of Idaho Small Business Development Centers (ISBDCs) are located throughout Idaho to assist you. These centers, usually located on college campuses, provide a wealth of start-up information and sponsor frequent business-oriented seminars. Contact the office below for information, or for the location of other ISBDCs nearer to you.
(c) Internet Sites. If you have access to the Internet, there is a wealth of state and even local business information provided by state and local governments. All states now have a state government Web page, and most major state agencies also have sites on the Internet where you can obtain useful small business information on matters such as state taxes, financing sources, or the addresses and phone numbers (or e-mail addresses) of various state and federal agencies' offices in Idaho. Since new sites are appearing constantly, you might also want to search for other Idaho government Web sites by using one of the popular Internet search engines, such as Excite! or Yahoo. To start your Internet search for Idaho government information, you may want to begin with the following Internet sites: State of Idaho Home Page (Access Idaho): Idaho State Agencies Index (list of state government agencies): State Tax Commission (download Idaho tax forms): Idaho Department of Commerce and Labor (wage-hour, unemployment tax, business startup information, new hire reporting): Idaho Industrial Commission (Workers' compensation): (d) Financing Sources. For information on financing your small business in Idaho, contact the Boise office of the U.S. Small Business Administration at:
Or, contact the Idaho Department of Commerce, at the address listed in Section VI(a) for that agency. |
Copyright © 2000 Michael D. Jenkins
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