Complete Legal Idaho Organizing Personal Assets Forms For Free

As a certain type of small business corporation, an S corp offers many advantages in the form of tax benefits, liability protection, increased prestige, and generous retirement contribution limits. The main disadvantages are a fairly involved setup process and requirements that must be carefully followed.

S corporations may have preferable self-employment taxes compared to the LLC because the owner can be treated as an employee and paid a reasonable salary. FICA taxes are withheld and paid on that amount.

Single member LLCs are treated the same as sole proprietorships. Profits are reported on Schedule C as part of your individual 1040 tax return. Self-employment taxes on Idaho LLC net income must be paid just as you would with any self-employment business.

If there will be multiple people involved in running the company, an S-Corp would be better than an LLC since there would be oversight via the board of directors. Also, members can be employees, and an S-Corp allows the members to receive cash dividends from company profits, which can be a great employee perk.

Idaho LLCs taxed as S-corp Like a regular LLC, the S-corp is taxed as pass-through entity, which means S-corps don't have to pay the usual corporate income tax. However, unlike regular LLCs, S-corps reduce amount of self-employment tax (15.3%) owed by making distributions (payments) to their members.

This power of attorney authorizes another person (your agent) to make decisions concerning your property for you (the principal). Your agent can make decisions and act with respect to your property (including your money) whether or not you are able to act for yourself.