Ketchum, Sun Valley and Hailey Business Licenses: Resort Local Option Taxes and Blaine County Rules
Ketchum, Sun Valley and Hailey Business Licenses: Resort Local Option Taxes and Blaine County Rules
Ketchum, Sun Valley and Hailey sit in the Wood River Valley of Blaine County, and a business operating in any of them answers to three layers of government: the state, the county and the city. Idaho does not issue a general business license at the state level, and counties issue no general business license either. What a city requires depends on the city. Some cities require a general license or permit, and others license only specific activities. This guide walks through the steps for a ketchum idaho business license search, the resort local option taxes in Ketchum and Sun Valley, and the Blaine County rules that can affect a home-based or rental business.
This is informational content, not legal or tax advice. Entity choice, tax treatment and lodging operations carry real consequences. Talk with a qualified attorney or CPA before you commit to a business structure or a pricing plan.
What You Need Before You Start
- A business name that is distinguishable from names already on file with the Idaho Secretary of State. Search the SOSBiz business search before you file.
- An Idaho street address for your registered agent. P.O. boxes are not accepted, and an assumed business name cannot serve as your registered agent.
- Your business address and parcel information. Confirm zoning with the city or county planning office if you are unsure which jurisdiction applies.
- A written list of every activity you plan to perform, such as lodging, food or drink service, retail, construction work or a home office. Each activity can trigger a different agency.
- A budget for state fees: $100 online or $120 on paper for an LLC Certificate of Organization, $25 online or $45 on paper for an assumed business name, and $20 for a name reservation that holds the name for 120 days. The annual report has no fee.
- Contact details for the Ketchum City Clerk, Hailey City Hall, the Sun Valley city offices, Blaine County Planning and Zoning, and South Central Public Health District.
Step 1: Register Your Entity With the Idaho Secretary of State
State registration is not a license. It creates your entity on the state's records. An LLC files a Certificate of Organization, and a corporation files Articles of Incorporation. The LLC certificate costs $100 when filed online through SOSBiz and $120 on paper. Confirm the corporation's paper fee on the Secretary of State site, since this guide lists only the $100 online filing fee for corporations.
Business filings are generally processed in about 7 to 10 days. For faster service, Idaho Code 30-21-214 sets a $40 surcharge for evidence of filing within 8 working hours and a $100 surcharge for same day service on filings submitted before 1:00 p.m. Mountain time. Current estimates appear on the SOSBiz Processed Through Date page.
Step 2: Name the Business and File a DBA if Needed
An LLC name must include "limited liability company," "limited company," "LLC," "L.L.C.," "LC" or "L.C." under Idaho Code 30-21-302(d). "Ltd." and "Co." are acceptable abbreviations. The name cannot falsely state or imply government affiliation.
If you will operate under a name other than your legal entity name, such as a vacation rental brand or a storefront name, file a Certificate of Assumed Business Name. The Idaho DBA is filed with the Secretary of State, not the county. It costs $25 online or $45 on paper, which includes a $20 manual data entry surcharge. An assumed business name stays active until you cancel it and does not require renewal.
Step 3: Check Each City Before You Open
This is where the Wood River cities differ, so do not assume one city's answer applies to the next town over.
- Ketchum: The city offers an online business license and renewal. The fee is not confirmed, so ask the Ketchum City Clerk for the current amount in writing before you pay.
- Hailey: Hailey issues a license for each premises, and it is renewed annually. A 2022 form listed $125, but treat that as an old figure only. Confirm the current fee schedule with Hailey City Hall.
- Sun Valley: Confirm with the city whether a general business license or an activity-specific permit applies to your business. The city's option tax page at sunvalleyidaho.gov covers the resort taxes, not the licensing question.
Step 4: Understand Short-Term Rental Rules
Short-term rental rules changed on July 1, 2026. Under HB 583, codified at Idaho Code 67-6539, no city or county may require a license, fee, permit or registration for a short-term rental. Ketchum also repealed its short-term rental permitting through Ordinance 1277.
The change does not remove your tax obligations. State and local lodging taxes still apply. If a local government asks you for an STR permit fee now, ask for the legal basis in writing. Zoning rules and general business registration may still apply to your property and your entity, so check those separately.
Step 5: Plan for Blaine County Rules if You Work From Home
City limits follow city zoning, and outside city limits Blaine County governs land use. A home occupation in unincorporated Blaine County may require a conditional use permit. Contact Blaine County Planning and Zoning before you advertise, receive customers or hire staff at a home office. Also ask whether your activity needs approval from a state board or the health district.
Step 6: Register for State Taxes
Idaho's flat income tax rate is 5.3%, so confirm the current year's rate with the Idaho State Tax Commission at tax.idaho.gov. A default LLC is a pass-through entity, so members report Idaho income on their personal returns. An LLC that files a partnership or S corporation return owes a $10 permanent building fund tax per owner for whom the entity pays Idaho tax. An LLC taxed as a C corporation pays the 5.3% business income tax plus the $10 tax.
The state sales tax rate is 6%. If you sell taxable goods or services, register through the Idaho Business Registration at tax.idaho.gov/ibr before your first sale. Idaho has no local sales tax except in voter-approved resort cities.
Step 7: Price for the Resort Local Option Taxes
Ketchum and Sun Valley levy resort local option taxes in addition to the state sales tax. Resort city taxes need a 60% voter majority under Idaho Code 50-1046. The current rates are below.
| City | Category | Rate |
|---|---|---|
| Ketchum | Lodging and short-term rentals | 2% |
| Ketchum | Liquor by the drink | 2% |
| Ketchum | Retail | 1% |
| Ketchum | Building materials | 1% |
| Sun Valley | Lodging, food and beverage, alcohol by the drink, recreation memberships, rentals and admissions | 4% |
| Sun Valley | Other retail | 3% |
| Sun Valley | Construction materials and ski lift tickets | 2% |
The Ketchum tax expires on December 31, 2027. The city has placed a renewal on the November 3, 2026 ballot. It would run 15 years and propose 4% on lodging and 1.5% on retail and building materials. The outcome is not known as of October 14, 2026. Build your pricing for both results, and ask the City of Ketchum whether the renewal changes the liquor by the drink rate, since the proposal as summarized does not address it.
This guide does not cover Hailey's local tax status. Confirm with Hailey City Hall whether any resort local option tax applies there.
Step 8: Check Health, Food and Contractor Rules
If you prepare or serve food, contact South Central Public Health District, which serves Blaine County. Ask about permit requirements and fees before you buy equipment or sign a lease.
Idaho has no statewide general contractor license. Contractors register with the Idaho Contractors Board at the Division of Occupational and Professional Licenses (DOPL). Some cities and counties add their own requirements, so confirm local rules before you bid.
Step 9: Calendar the Annual Report
An LLC or corporation must file an annual report every year. The fee is $0. The report is due before the end of the month in which your Certificate of Organization or Articles of Incorporation became effective, beginning one year after formation. If you formed in March 2027, your first report is due before the end of March 2028. Set a recurring calendar reminder on the day you file, not on the due date.
Common Mistakes to Avoid
- Treating state registration as a license. Idaho registration creates your entity. It does not authorize your activity.
- Filing a DBA with the county. The Idaho assumed business name is filed with the Secretary of State.
- Paying an STR permit fee without asking why. Since July 1, 2026, cities may not require one under HB 583.
- Using a P.O. box for the registered agent. The agent needs a physical Idaho street address.
- Relying on an old fee. The Hailey figure of $125 comes from a 2022 form. Get current fees in writing.
- Ignoring the November 3, 2026 ballot. A failed or passed renewal changes your Ketchum rates for the coming years.
- Forgetting the annual report. It is required every year, even though it costs nothing.
Expected Results
Completing these steps may help you open on a predictable schedule and avoid paying for permits a city cannot require. Processing estimates are not guarantees, so build in extra time for state filings and city approvals. Your pricing may need to change after the November 3, 2026 vote, so review your rates once the result is certified.
Next Steps
Start with the Secretary of State search, then call the City Clerk in each city where you plan to operate. Get the license fee, the activity rules and the resort tax treatment in writing. If your business involves lodging, a home office, food service or construction, schedule time with a qualified attorney or CPA before you sign a lease or a contract.