Setting Up a Sole Proprietorship in Idaho

Hi friends, if you're just joining us on this adventure of starting your own business, I'd recommend reading my previous blogs, "Fundamentals of Starting an Online Business", "How to Create a Website", and "Tips and Tricks for Good Website Design". There are many types of legal structures to choose from when you're deciding on starting your own business, but the one I'll focus on today is a sole proprietorship. Simply put, a sole proprietorship is a one man or woman show. You and your business are considered one and the same. You are the only employee (a spouse could be included, but not considered a separate employee) for your business, and everything you make or lose will be included on your personal taxes. Setting up a sole proprietorship is one of the easiest and cheapest businesses to set up. However, one of the downsides is that you will be personally liable, and your business assets are at risk since the business is not considered separate from you. The first step to setting up a sole proprietorship is to register your business with the Secretary of State. Typically, this is done by registering an assumed business name (ABN) or doing business as (DBA). All that means is that your registering your businesses name as something other than your personal name. Next, depending on what you're selling (service or product) you may have to apply for an Idaho Sales Tax Permit. To do this you simply apply online using form IBR-1. For most businesses the registration and permit are all you need to start, but depending on what you're selling and the type of legal structure, there may be more you need to do. If that is not the case then congratulations, you now know how to start your own business.