Idaho LLC Tax Filing Requirements James Fish, May 25, 2023June 8, 2023 If you’re looking to form a limited liability company (LLC) in Idaho, it’s important to understand the tax filing requirements. Table of Contents Toggle Idaho LLC Tax Filing RequirementsCreate your LLC Corporation with just 3 easy stepsIdaho LLC Taxation OptionsIdaho State Employer and Industry Taxes Idaho LLC Tax Filing Requirements Idaho LLCs must file an annual tax report with the Idaho State Tax Commission (STC). The purpose of the report is to provide information about the business’s income taxes and report any taxes owed. LLC members can file their taxes on their personal income tax returns by completing Schedule C. However, if the LLC has multiple members or has elected to be taxed as a corporation, it must file a separate corporation income tax return. Business owners should seek guidance from a tax professional to ensure they are meeting all state tax filing requirements. Inaccuracies on tax documents can result in penalties, so it’s important to answer all questions accurately. If an LLC fails to file its tax documents, it may receive a reminder notice from the STC. Create your LLC Corporation with just 3 easy steps Idaho LLC Taxation Options Taxation Option Description Disregarded Entity The LLC is not recognized as a separate entity for tax purposes. All income and expenses are reported on the owner’s personal tax return. Partnership The LLC files a partnership tax return (Form 1065) and the income and expenses are passed through to the owners’ personal tax returns. S Corporation The LLC elects to be taxed as an S Corporation and files Form 1120S. The income and expenses are passed through to the owners’ personal tax returns, but the LLC is able to save on self-employment taxes. C Corporation The LLC elects to be taxed as a C Corporation and files Form 1120. The corporation pays taxes on its income and the owners pay taxes on any dividends they receive. Idaho State Employer and Industry Taxes Idaho LLCs are subject to state tax filing requirements. As a business owner, it’s important to understand Idaho’s State Employer and Industry Taxes. The Idaho State Tax Commission website offers guidance and information on tax laws, filing requirements, and reporting income taxes. In case of errors or inaccuracies, the Lane V. Erickson Business Law team can answer any questions and provide assistance. LLC members are required to file a Schedule C tax document with the IRS, and obtain an Employer Identification Number (EIN). Business owners must also keep their LLC operating agreement template up to date and be aware of any changes in state tax laws. Congratulations on starting your journey as a limited liability company or sole proprietorship. James FishWas this article helpful?YesNo LLC Taxation And Franchise Tax