You must submit an application to the Idaho State Tax Commission in order to register for sales tax in the state of Idaho. You can submit a paper application by mail or online via the Taxpayer Access Point (TAP) system. Your company’s legal name, address, and federal employment identification number (FEIN) must be provided, among other details.
Once you have signed up to collect sales tax in Idaho, you must do it on a regular basis. This usually entails adding the tax to your sales price and sending the extra money to the state every month or every three months. For auditing purposes, you must also maintain thorough records of your sales and tax receipts.
A type of business structure known as a limited liability partnership (LLP) combines the liability protection of a corporation with the tax advantages of a partnership. You might have to send 1099 forms to specific vendors or contractors you pay if you operate as an LLP. Included in this is anyone or any organization to whom you have paid a yearly rent or service bill of at least $600.
An organization structure known as a limited partnership (LP) consists of both general partners and limited partners. While limited partners are investors who have limited liability, general partners run the company and are individually liable for its debts and responsibilities. An organization form known as a limited liability company (LLC) provides liability protection to all of its owners, sometimes referred to as members. LLCs are taxed similarly to partnerships or sole proprietorships rather than as a separate organization.
A corporate structure called a professional limited liability corporation (PLLC) is created specifically for licensed professionals including doctors, lawyers, and accountants. Unlike an LLC, a PLLC affords its owners liability protection, but it is only applicable to the professional services the company offers.
If you have workers or if your limited liability business (LLC) has more than one member, you must receive a federal employment identification number (EIN) from the Internal Revenue Service (IRS). A nine-digit number, known as an EIN, is used to uniquely identify your firm for taxation purposes. On the IRS website, you can submit an online application for an EIN.