Prospective business owners register their businesses in at least two, and possibly three ways. Both a legal structure (business entity form) and a name must be registered. You may want to consult with an attorney before choosing a legal structure, particularly if more than one person will own the business. (The information on this site does not replace legal advice provided by an attorney.) The legal entity form affects the taxes paid and when and how they are reported, so the assistance of an accountant may also be needed.
Business names and entity types are registered with the Idaho Secretary of State’s office before engaging in business activities. If the business will be an LLC or corporation, the name is registered when the entity registration form is filed. Sole proprietorships and partnerships file an Assumed Business Name, also called a DBA (doing business as).
Business registrations are public records. Any information included on the registration form, including your name and address, will be available for public view. The Secretary of State’s website includes a tutorial on how to register your business online. You must be 18 or older to register a business.
If the business will have employees, make retail sales, or provides lodging, it must also register with the Idaho State Tax Commission and possibly the Idaho Industrial Commission and Idaho Department of Labor (employers only) by filing IBRS. You do this after registering the business name and legal structure.
Effective January 1, 2024 many U.S. companies are required to report information about their beneficial owners, the individuals who ultimately own or control the company and benefit financially from ownership. The information is reported to the Financial Crimes Enforcement Network (FinCEN), a branch of the U.S. Department of the Treasury. Beneficial ownership reporting is a requirement of the Corporate Transparency Act of 2021.
Who should report? When in doubt, report. Corporations, s-corps, LLCs and DBAs need to report. There is no penalty to report if you may be exempt, but there is a hefty penalty, assessed daily, for failure to report if you are not exempt. Existing businesses have until January 1, 2025 to report. New businesses must report within 90 days of registering their business with the Secretary of State.