Idaho has long been an agricultural state. The state produces a third of all potatoes grown in the US in addition to all three common types of wheat, the hard red, the soft white and the dark northern spring.
Today, however, the science and technology sector has grown to be one of the largest in the state. It accounts for over 70% of the state’s exports. Several blue-chip corporations like Hewlett Packard, Micron Technologies, Sun Microsystems and Clearwater Analytics have set up shop in the state.
Idaho has a very friendly, business climate. In fact, based on a 2014 study that drew data from more than 12,000 small business (SMB) owners, the state emerged as the smallest business-friendly state behind Utah.
The state administration has managed to keep living costs and taxes low. This in turn has helped boost small business profits and is now a crucial part of the state economy.
Here are some interesting statistics on small businesses from the state of Idaho:
- There are 169,151 small firms that represent 99.2% of all businesses in the state.
- Idaho SMBs pay the checks for more than 325,000 employees. That’s 56.3% of all Idaho employees.
- In 2019, businesses with less than 20 employees generated 11,561 jobs while firms employing 100-499 people created 1,484 jobs.
- The average median income for self-employed individuals running their own incorporated businesses is $49,000. Those who run unincorporated businesses have a median income of $22,000.
- There are 1,404 small firms in the export business that account for 22.7% of the state’s $3.7 billion worth of export revenue.
- Idaho has a flat corporate income tax of 7.4%, a minimum corporation tax of $20 and a $10 excise is charged when filing a return.
- When income from your business passes through to you personally, this income will be subject to a personal income tax which ranges from 1.6% to 7.4% depending on income.
- State law requires that every new Idaho LLC designates an Idaho registered agent that will be available during regular business hours at a physical address within the state.
- Idaho’s SMBs are not required to pay corporate income tax. They are, however, required to pay a $20 minimum tax and a possible additional tax of at least $10 under certain circumstances.
- The top 3 industries represented by small businesses are construction (21,367), professional and technical services (20,863) and real estate, and rental and leasing (19,661).
- 1,399 small farms exited the market in the fourth quarter of 2018 resulting in 3,697 lost jobs. During the same time, 2,142 businesses started up generating 5,737 jobs.
- In 2018, Idaho lending institutions, reporting under the Community Reinvestment Act, issued 32,187 loans under $100,000, a total value of $528.7 million.
- To form a corporation in Idaho, you need to file your Articles of Incorporation with the Secretary of State’s office at a fee of $100 for online registration or $120 via hard copy delivery (mail of in-person).
- The three industries with the largest number of small business employees are health care and social assistance (54,624), accommodation and food services (44,481) and construction (39,277).
- The utility industry has the smallest number of SMBs compared with other sectors with only 220 firms working in them.