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What to Think About When Starting a Business

If you’re thinking of starting a new business, you will need to consider the business type that best suits your needs. Also, you may need to obtain an Individual Tax Identification Number. To be sure, if you own or operate any form of business, you will need to file taxes.

Why Would I Want to Create and Maintain a Business Structure?

For more information, or to register your business, visit the Idaho Secretary of State’s website:

What If I Don’t Have a Social Security Number?

What Business Type Best Suits My Needs?

The major types of businesses include sole proprietor, general partnership, limited liability partnership, corporation, and limited liability company. The table below outlines some of the differences between these types.

Section 30 of the Idaho Statutes provides more detail. See Idaho Code § 30-21-201(1)-(5) and Idaho Code § 30-21-102(11)(A)(i)-(x) for business- structure filing requirements; Idaho Code § 30-29 for corporations; Idaho Code § 30-23 for partnerships and limited liability partnerships; and Idaho Code § 30-25 for limited liability companies.

Authors: Jonathan Meier, Student, College of Law, University of Idaho, Christy Dearien, Research Associate, Grant and Project Development, University of Idaho, John Rumel, Professor, College of Law, University of Idaho, Paul Lewin, Associate Professor and Extension Specialist, Agricultural Economics and Rural Sociology, University of Idaho

PLEASE NOTE: This handout does not offer or substitute for legal or tax advice.

This work was supported by the Agriculture and Food Research Initiative (AFRI) Award No. 2016-69006-24831 from the USDA National Institute of Food and Agriculture.