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Limited Liability Companies

Limited Liability Company

LLC Summary

Idaho Limited Liability Company General Summary

An Idaho Limited Liability Company, or LLC, offers many of the same advantages of a corporation. The Idaho LLC provides the limited liability of a corporation while allowing more flexibility in managing the business and organization. This allows the member to avoid the more rigid rules of a C-corporations.

Like shareholders of a corporation, all LLC owners are protected from personal liability for business debts and claims. This means that if the business itself can’t pay a creditor, they cannot legally come after any LLC member’s house, car, or other personal possessions as long as the LLC’s renewal is filed annually and you maintain an updated operating agreement.

An LLC does not pay any income tax itself. It’s described as a pass-through entity that allows profits and losses to flow through to the tax returns of the individual members. All profits, wages or draws will be subject to both income taxes and self-employment taxes annually.

Limited Liability Company

LLC Ownership Facts

Facts of a Limited Liability Company

LLC Facts:

  • Excellent for holding assets like vehicles and real estate.
  • Like a corporation, the LLC’s owners have limited personal liability for the debts and actions of the LLC.
  • An LLC is a Pass-through Entity for federal tax purposes.
  • Owners of an LLC are called members. Since most states do not restrict ownership, members may include individuals, corporations, other LLCs and foreign entities.
  • There is no maximum number of members.
  • Idaho permits “single member” LLCs, i.e., those having only one owner.

PLLC

Professional Limited Liability Company Facts

Professional Limited Liability Company Facts

The purpose for states creating PLLCs is for regulation and safety. Both a PLLC and an LLC offer the same liability protection to their members. The only difference is that some states require licensed professionals to form PLLCs and they’re not allowed to form LLCs. In most cases, a PLLC will have stricter requirements and are governed more closely.

Professions Include:

  • Architecture
  • Chiropractic
  • Dentistry
  • Engineering
  • Landscape Architecture
  • Public Accountancy
  • Law
  • Medicine
  • Nursing
  • Occupational Therapy
  • Optometry
  • Physical Therapy
  • Podiatry
  • Professional Geology
  • Psychology
  • Social work
  • Surveying
  • Veterinary Medicine
  • And No Others.

Limited Liability Company

LLC Tax Election Options

Flexible Tax Reporting

The IRS does not have a separate taxation category for LLCs. This allows the LLC members to elect at their own discretion a form of taxation that makes the most sense for their business.

While your taxes will change, the facts, ownership, and management structure will not.

For example, if you elect to have your LLC taxed as an S or C-Corporation, you will not have shares of stock to sell or be qualified for an IPO. To receive the full benefits of a Corporation, you must formally convert your entire LLC.

 

Taxation choices include:

  • Sole Proprietorship (single-member)
  • Partnerships (two or more members)
  • S-Corporation (single or multi-member)
  • C-Corporation (single or multi-member)

Limited Liability Company

LLC Election Conversion

LLC Tax Election Changes

If you are an LLC being taxed as a Sole Proprietor, or a Partnership, then yes you can opt to elect an S-Corporation or C-Corporation later down the road as you grow.

However, if your LLC has already selected to be taxed as a Corporation, then a switch to a Sole Proprietor, or a Partnership would trigger a taxable event. This could also be a red flag to the IRS who may believe that you are making the conversion for tax related reasons.

 

 

LLC Packages

 

 

LLC Basic

LLC or PLLC

Articles Of Organization

Federal Tax ID Number (EIN)

Self-Customizable Operating Agreement & Forms

Electronic Documents by Email

All Filing Fees Included

Shipping Fees of Documents Included

LLC Deluxe

LLC or PLLC

Articles Of Organization

Federal Tax ID Number (EIN)

Self-Customizable Operating Agreement & Forms

Certificate of Existence

One Assumed Business Name "DBA"

199A 20% Business Income Tax Deduction Book

Expedited Electronic Documents by Email

All Filing Fees Included

Expedited Filing Services

High Quality Linen/Cotton Documents

Shipping Fees of Documents Included

Comparison Chart

Compare Business Entity Facts

Professional Idaho Business Formations by Tax Law Accountants

Idaho LLC

Limited Liability Companies & Professional Limited Liability Companies

Idaho Partnership

General Partnerships, Limited Partnerships, LLP's & LLLP's

Reviews

Customer Reviews and Testimonials