Registering as a S Corp can provide considerable tax advantages if you’re wanting to form a corporation in Idaho. S Corporations are legal organizations that are taxed similarly to partnerships but offer the corporate liability protection. We’ll walk you through the procedures needed to register a S Corp in Idaho in this article.
Step 1: Select a Name You must select a distinctive name for your S Corp that is not already being used by another company in Idaho before registering it with the state. On the Idaho Secretary of State’s website, you can see if the name you want is available.
File Articles of Incorporation in Step 2 You must submit Articles of Incorporation to the Secretary of State in order to register your S Corp in Idaho. The names of your directors and officers, the purpose of your company, the amount of shares of stock your corporation will issue, and your chosen name will all be listed in this document.
Obtain an EIN in Step 3 Your company is identified for tax purposes by an EIN (Employer Identification Number), a special nine-digit number provided by the IRS. An EIN for your S Corp can be obtained by visiting the IRS website.
Step 4: Register for State Taxes
Following the filing of your S Corp with the Secretary of State and the acquisition of an EIN, you must register with the Idaho State Tax Commission for state taxes. Obtaining a sales tax permit is part of this if your company will be transacting business in Idaho.
Is Legalzoom a Good Way to Form an LLC? Popular online service Legalzoom offers legal documents and services to both people and companies. Even while using Legalzoom to form an LLC can be practical, it’s vital to remember that they are not an attorney-client relationship and cannot give legal counsel. It’s best to speak with a lawyer if you have specific legal issues or concerns. Does an LLC have to be profitable? Although it’s common for LLCs to be founded with the hope of turning a profit, it’s not necessary from a legal standpoint for an LLC to do so. However, the IRS may classify your LLC as a hobby rather than a business and restrict some tax deductions if it habitually operates at a loss. As a sole proprietor, how much should I set up for taxes? The employer and employee portions of Social Security and Medicare taxes, sometimes referred to as self-employment taxes, must be paid by a lone owner. Generally speaking, it’s advised that sole proprietors set aside at least 25–30% of their revenue for taxes, however your particular scenario may dictate a different amount.
Can a Single Person Own an LLC? The answer is yes; such an LLC is referred to as a single-member LLC. Single-member LLCs still offer the liability protection of a corporation while being classified as sole proprietorships for tax purposes.