Starting a service business in Idaho comes down to four things: picking a structure, registering with the state, getting licensed for your trade, and setting up a way to bill customers. Filing an LLC in ID costs $100, ongoing reporting is no annual report, sales tax is 6%, and personal income tax runs 5.695% flat. Below is the full sequence, the fees you should budget for, the licenses most trades need, and the deadlines that catch new Idaho owners off guard.
Most new registrations come out of Boise, Nampa, Meridian — local business licenses are issued at the city or county level, so check yours after the state filing clears.
| Item | ID cost |
|---|---|
| LLC / entity filing (one-time) | $100 |
| Annual / periodic report | No annual report |
| Federal EIN (IRS) | Free |
| Sales tax registration | Typically free |
| Trade / professional license | Varies by trade |
| Local business license | Set by city / county |
Fees change — confirm current amounts with the ID Secretary of State and the Idaho State Tax Commission.
Choose your structure and file with the ID Secretary of State ($100). Get your free EIN from the IRS the same day.
Register for Idaho sales tax with the Idaho State Tax Commission, then open a business bank account under the registered name.
Apply for your trade license and local business license. This is usually the longest step: Sales tax permit; Professional license.
Get general liability insurance (and workers' comp before your first hire), then set up estimates and invoicing so you can bill the day you're cleared to work.
LLC Filing Fee
$100
Annual Report
No annual report
Sales Tax
6%
Income Tax
5.695% flat
Choose business structure
File with ID Secretary of State
Get EIN
Register for state taxes
Get local permits
Open business bank account
No annual report required for Idaho LLCs
Simple and affordable state to start a business
No — Idaho is one of the few states with no annual report requirement for LLCs.
Online LLC filings with the ID Secretary of State are typically processed in a few business days, and an EIN from the IRS is issued immediately online. Trade licensing and local permits usually take longest — plan on two to six weeks before you're fully cleared to work, depending on your trade.
No — you can operate as a sole proprietor in Idaho and still invoice customers legally. An LLC ($100 to file, no annual report) separates your personal assets from business liability, which matters most once you're on customer property, hiring help, or signing contracts.
Idaho sales tax is 6%. Materials and goods are commonly taxable, while labor treatment depends on the type of work, so bill parts and labor as separate lines and register with the Idaho State Tax Commission before you start collecting.
Open a business bank account under the registered name, then invoice from a tool that applies ID tax per line item and accepts cards. Glo Invoice sends invoices by text with a one-tap pay link, and Tap to Pay lets you charge on site before you leave the job.