People wishing to cut their tax bills frequently travel to Idaho because of its reputation for having low tax rates. The amount of income required to submit taxes in Idaho must be known, nevertheless, if you reside there. Depending on your filing status, age, and income level, different filing requirements apply.
If your gross income is $12,000 or more and you are a single filer under 65, you must file taxes in Idaho. If your gross income is $24,000 or more and you are married filing jointly and both of your spouses are under 65, you must file taxes. You must file taxes in Idaho if you are married and filing separately and have a gross income of at least $4,000.
The salary limits are higher if you are 65 or older, though. If your gross income is $13,600 or more and you are 65 years of age or older, you must file taxes. If both spouses are 65 years of age or older and you are married filing jointly, you must file taxes if your gross income is $25,300 or higher. If both partners are over 65, the upper income limit rises to $26,600.
Idaho also has a sales tax and a property tax in addition to its income tax. Idaho does not, however, impose a Business and Occupation (B&O) tax. In contrast to several other states, Idaho does not charge a business a fee for the right to conduct business there.
For their business, many people opt to create a Limited Liability Company (LLC). Even though an LLC can shield business owners from responsibility, it might not always be the best choice. For instance, creating an LLC might not be essential if you run a very small firm as a sole proprietor because it can result in more costs and paperwork.
However, an LLC can provide liability protection and the flexibility to decide how the business is taxed for larger businesses with several owners. Depending on the needs of the firm, an LLC may be taxed as a sole proprietorship, partnership, S corporation, or C corporation.
In conclusion, it’s critical to understand the income requirements for filing taxes in Idaho based on your filing status and age. Additionally, there is no B&O tax in Idaho, and depending on the size and structure of your company, creating an LLC may not necessarily be necessary.
In Idaho, the person or entity in charge of an LLC is commonly referred to as the “manager,” and they can be any person or organization that is specified in the operating agreement of the LLC as such.