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How do you File an Idaho C-Corporation?

An Idaho C-Corporation can have considerable advantages to pass-through entities as to greater fringe benefits. As employees, owner-employees of an Idaho C-Corporation qualify for certain employee fringe benefits. 

Example:

Health insurance can be wholly tax-free to Idaho C-Corporation owner-employees (through full deduction by the C-Corporation and full tax exemption for the owner-employee). 

Another advantage of the Idaho C-Corporation is that they are less likely to be subject to passive loss deduction limitations. These limit the opportunity to deduct losses from activities the taxpayer doesn’t “materially participate” in, against income from investments or other Idaho businesses. 

Another tax disadvantage of an Idaho C-Corporation status is its limited ability to report for tax purposes on the cash method of accounting, which generally defers tax as compared to the accrual method.

Does an Idaho C Corporation Have a Perpetual Existence?

Yes.

An Idaho C-Corporation has a perpetual existence that can outlive its original owners/shareholders. This makes an Idaho C Corporation an excellent choice for those who would like to pass down their business to future generations and secure the financial well-being of their families. 

Does the Idaho C Corporation Have Pass-through Taxation?

No. 

an Idaho C-Corporations pay corporate taxes on profits before paying out the rest in dividends to shareholders. 

When the shareholder receives a qualified dividend, they pay dividend tax rates, which are much less than ordinary income tax rates. In addition, qualified dividends do not increase your ordinary income tax rates, moving you, and other income into higher income tax brackets.