When you are starting a business in Idaho and intend to sell goods or food or offer services, you will need to register your business with the Idaho State Tax Commission. There are specific licenses and registrations you need to obtain to legally operate your business, including an Idaho sales tax permit.
After registering your business name and obtaining your Employer Identification Number (EIN) from the IRS, you can apply for your business permits and licenses. Idaho does not require business licenses, but specific cities may require one.
The primary permit that businesses do require is a sales tax permit. This enables your business to operate legally and requires you to collect sales tax from your customers on taxable sales. Some businesses may also benefit from obtaining a resale permit that makes them tax-exempt on inventory goods they sell to their customers.
Some of the other commonly used names for an Idaho sales tax permit are:
Even though people call it different names, it is still the same permit you will need to open your business.
Most types of businesses in Idaho, from grocery stores and restaurants to retail stores and quick-change oil change shops, will need a seller’s permit. Furthermore, if your business falls into one of these categories, you will need a seller’s permit:
It is worth noting sales tax is not charged on labor and most services in the state. However, sales tax must be charged on any goods or products used to perform the labor or service.
For example, you take your car in for an oil change. While you will not be charged sales tax for the labor to change your oil, you will be charged sales tax on the oil and oil filter.
No, your Idaho seller’s permit does not expire. It is a one-time registration process. However, there are certain situations where you may need to update the permit with the Idaho State Tax Commission, such as:
No, a business license in Idaho refers to a specific type of license required for certain businesses. Not all businesses in Idaho require a business license. For example, if you sell alcohol, operate a childcare facility, or operate a restaurant, you will need a business license.
Furthermore, you should not confuse your Idaho business registration with a business license. Your business registration is what establishes your business with the state.
It is easy to get a seller’s permit online using FastFilings. We have simplified the application process and file electronically with the state. To get started, follow these steps:
We can help you obtain your resale certificate if you need tax-exempt status for your inventory purchases as well. Submit your application for your Idaho sales seller’s permit or resale certificate today.
