• The corporation is the original structure for providing personal liability protection to the owners of a business. Although a corporation is now easier to organize, it may not be the best choice of entity for starting up a business. A corporation must have a board of directors that may be one person. A corporation must also maintain certain books and records and hold annual meetings of shareholders. In small, closely held corporations, the documentation of these activities may be more onerous than is warranted.
  
• Unless qualified as an "S" Corporation pursuant to extensive IRS rules, a corporation is subject to double taxation, i.e.; income is taxed at the corporate level and when it is distributed to shareholders as a dividend.
• In addition to taxation and personal liability, other factors may enter into the decision on type of entity.
  
• These include:
  
• The perceived needs for a given management structure.
• The need for ease in transferring all or part of the ownership.
• The need for withdrawing the investment in the future.
• The need to conduct the business in more than one state either initially or in the future.

• The Idaho Legislature in 1993 authorized the organization of Limited Liability Companies (LLC). The LLC has some of the characteristics of a sole proprietorship, some of a partnership, and some of a corporation. An LLC may, for tax purposes, be disregarded, be taxed like a partnership or taxed like a corporation.
  
• The LLC has members rather than shareholders. Managers or members may exercise day to day management. The LLC is a business organization that operates under a contract (called an operating agreement) between the owners, much like a general partnership.
  
• In order to have a legal existence, the LLC must file Articles of Organization with the Secretary of State. The members are protected from personal liability for the acts of the LLC in much the same manner as corporate shareholders. Unlike limited partnerships, personal liability is not imposed on members for participating in management of the LLC.
  

• 3% Investment Tax Credit reimbursement is available for qualifying reimbursement for each new new investments.
• 5% Research and Development credit is available for basic research and costs of qualified research.
• 3% Broadband Telecom Credit on Idaho State Income Tax for qualified broadband equipment. Credit is transferable.
• Net Operating Loss Deductions may be carried back two years.
• 100% Idaho Property Tax Exemption for business inventory and for registered motor vehicles, vessels and aircraft.
• 100% Goods-in-Transit Exemption plus an additional exemption from sales and use taxes for goods purchased by a carrier in its business and delivered outside of Idaho, in accordance with Idaho Freeport laws.
• Exemption from sales and use tax for equipment required by state or federal regulation.
• 100% Production Equipment Exemption from Idaho Sales & Use Tax for equipment used directly in manufacturing, processing, mining, fabrication or logging operations; and for clean rooms used in semiconductor and semiconductor equipment manufacturing.
• Training Reimbursement for Each New Employee.
• New Job Credit for businesses that produce, assemble, fabricate, manufacture or process natural resource products.
• Prime Rate Loan by commercial banks with 85% Small Business Administration Guarantee.
• Industrial Revenue Bonding capacity to finance manufacturing, processing, production and assembly projects.
• Community Block Grants through local cities and counties to finance public infrastructure improvements and support business development.
• Rural Business Development Grants to communities in rural Idaho to facilitate new business infrastructure.
• Tax Increment Financing for cities and counties to fund new infrastructure needed to support business development.
• 100% Sales Tax Exemption for Industrial Fuels and Raw Materials.

Incorporate in Idaho

Form an LLC in Idaho