Idaho raises a good amount of its revenue through sales and use tax. When a business wants to sell products or services in Idaho, it first needs to register to get an Idaho sales tax permit. The business then collects taxes from its customers and send these Idaho sales taxes to the Idaho State Tax Commission.
See if you need to file your business with the Idaho Secretary of State. The following Idaho business entities must register with the Secretary of State: corporations, general partnerships, limited partnerships, limited liability partnerships, limited liability companies and unincorporated nonprofit associations. You can get articles of incorporation and other Idaho business forms at sos.idaho.gov/corp/corindex.htm. By doing this step first, you will then have an official Idaho business name to sue when registering for Idaho sales tax and other business taxes or withholding.
You may also need a federal employer identification number (usually called an “EIN”) for your organization. This includes companies with at least one employee and even nonprofits with no employees. The IRS, which provides these EIN numbers, can give you more information on its website at IRS.gov.
Use the Idaho Business Registration System to register for sales and use taxes and other things like unemployment, withholding and business income tax. Start at https://labor.idaho.gov/applications/ibrs/ibr.aspx?sAction=t to see what kind of information you need to register. You can then just follow the online system to get an Idaho tax ID number and sales tax permit.
Learn how much to charge your Idaho customers. The basic Idaho sales tax rate is 6 percent, as of 2010. However, depending on where your business is located, you may have to pay additional local Idaho sales tax to cities or counties. Open tax.idaho.gov/s-results-quest.cfm?faq=146 to get the contact information for local governments that impose a sales tax. You may need to fill out a local form for a sales tax permit or license. In addition, you would need to get local sales tax returns in this case.
Get Idaho sales tax forms so you can collect and remit the tax from your sales. The Idaho State Tax Commission has a database of forms with a search engine. Access it at tax.idaho.gov/searchentry.cfm?stype=form and search for the sales tax forms.
Fill out the forms (Idaho sales tax returns) and send them in in time for the deadline. While looking through the forms, you can also find various Idaho sales tax exemptions.
Idaho Tax Rates and Overview