There are many reasons to operate your business as a C Corporation.
I am sure you have heard about the terrible double taxation on Idaho C-Corporations. However, while not being entirely wrong, it is mostly an uninformed way of thinking. Despite the potential double tax hit, this business structure can help Idaho business owners lower their overall tax burden. his traditional structure can serve as an incredibly useful tool for shifting income for tax purposes, on top of numerous tax write-offs and advantages. Many companies use the Idaho C corporation structure, regardless of size.
8 Reason to Form an Idaho C-Corporation
Minimizing your overall tax burden.
Depending on the amount of profit your Idaho company makes and your tax bracket, an Idaho C-Corporation could help you minimize taxes. As shown in the corporate rate schedule on page 17 of Form 1120, the IRS taxes different levels of profit at different rates, sometimes much lower than individual rates
Carrying profits and losses forward and backward.
Whereas the fiscal year must coincide with the calendar year for LLCs and S-Corporations, an Idaho C-Corporation enjoy more flexibility in determining their fiscal year. Thus, shareholders can shift income, deciding what year to pay taxes on bonuses and when to take losses.
Accumulating funds for future expansion at a lower tax cost.
The Idaho C-Corporation allows shareholders to transition income easily and retain earnings within the company for future growth, usually at a discounted rate. Since profits from an Idaho S-Corporations appear on shareholders’ tax returns, whether they have taken a distribution or not, owners can get bumped into higher tax brackets even though they did not receive the money.
Writing off salaries and bonuses.
Shareholders of Idaho C-Corporation can serve as salaried employees. While these salaries and bonuses fall subject to payroll taxes and Idaho Social Security and Medicare contributions, the corporation can fully deduct its share of payroll taxes. Moreover, the company can pay employees enough so that no taxable profits remain at the end of the fiscal year. Shareholders frequently use this option rather than receive dividends, which would indeed be taxed twice.
Deducting 100% of Idaho medical premiums and other fringe benefits.
If the Idaho company makes fringe benefits equally available to all employees, not just shareholders, there are many hefty tax write-offs possible for an Idaho C-Corporation that individual employees also receive tax-free: medical reimbursement plans and premiums for health, long-term care and disability insurance.
Writing off charitable contributions.
An Idaho C-Corporation is the only kind of corporate entity that can deduct contributions to eligible charities as a business expense. You can carry over charitable donations above the limit to the next five tax years, too.
Carrying losses over multiple years.
This Idaho business structure can take significant capital and operating losses, and the IRS does not tend to scrutinize businesses, especially new ones, if they show losses several years running. This is especially important for start-ups that may take substantial losses in the first year but wish to carry them forward to future years.
Enjoying fewer ownership restrictions than S corps.
Idaho S-Corporations have numerous rules limiting ownership: no more than 100 shareholders, no non-resident alien owners, and no non-individual owners. They also may not issue more than one class of stock. When entrepreneurs are seeking equity investors, these limitations will not work.
Coeur d’Alene Idaho draws thousands of people from across the US each year. bestCDA.com reveals 28 reasons why you should move to CDA.
Coeur d’Alene Lake is known as one of the five most beautiful lakes in the world, according to National Geographic. The city itself is no stranger to success, with Coeur d’Alene Resort and Spa winning the coveted Condé Nast Traveler Readers’ Choice Award in 2018, and the whole city earning the Cleanest City in America in the same year. Every month, the bustling gem of Idaho collects yet another prize and accolade. But just what exactly makes CDA so great? Are you asking why to move to Coeur d’Alene Idaho? Here are 28 reasons why you should move your family and your business to the heart of ID.
Marina and buildings along Lake Coeur d’Alene, in Coeur d’Alene, Idaho.
#1. Coeur d’Alene Has a Booming And Engaged Community
Coeur d’Alene is one of the fastest growing cities in America, with a 2019 population of over 50,000, projected to reach 81,000 in 2035. The city has already grown by almost 25% since the 2010 census. People are drawn to the vibrant community. Yet the average age in Coeur d’Alene is below 40, which might explain why CDA is also a hub for music, nightlife, and entertainment. Whether you’re looking to start a business, relocate and grow an existing company, or put down some family roots, Coeur d’Alene has success and development on the horizon for years to come.
#2. CDA Is Home To The Friendliest People In The World
CDA is one of the friendliest places in the world, with the Chicago Tribune calling it ‘a friendly pocket of joy in the Northwest.’ You could be visiting a burger joint or a local realtor, and people will ask you how you are – and actually mean it. People don’t just move to Coeur d’Alene Idaho, as droves of tourists also live out their happy summers in CDA every year. Idaho itself was ranked the seventh happiest state in the US in 2021.
#3. There Is Good Funding For New Business Owners
Coeur d’Alene is a hub for business development, and truly entices people to the area with the huge array of local funding opportunities, including:
These are either grant programs, non-profits, government development programs or tax-relief schemes that directly benefit the new business owner. There are numerous organizations in place to ensure that if you’re starting a business in Coeur d’Alene Idaho, you’re able to thrive.
#4. Those With Existing Businesses Also Get Relocation Advice
CDA also offers support to those with existing businesses looking to relocate. The Coeur d’Alene Regional Chamber of Commerce is directly focused on business growth in the area and supports businesses moving to the local area. Their members include organizations like IgniteCDA, which is focused on urban redevelopment and business growth. You will receive advice on everything from finding an office to how to market your business locally. Coeur d’Alene Accounting is the highest rated accounting firm in CDA, so be sure to make this your first stop when starting or relocating an existing business.
#5. A Productive Workforce For Hire
One of the greatest benefits of starting a business in Coeur d’Alene is that you have a ready-made workforce in the area. They are young, productive and smart, with over two-fifths of the workforce having a degree. If you’re looking to grow your staff, you’ll have a wide range of individuals on hand to choose from. A productive and educated workforce is exactly what you need to boost the success of your startup in CDA.
#6. There’s A Booming And Well Paid Tech-Sector
The Innovation Collective in Coeur d’Alene is focused on bringing increased job opportunities in AI development and robotics to CDA. The founder Nick Smoot was born in Coeur d’Alene and has already developed and sold three successful tech companies of his own. The collective is composed of a number of member businesses focused on developing the tech field in CDA.
#7. Job And Career Opportunities For Those That Move
The fast development of the local area and economy has carried with it increased job opportunities and the opportunity for career progression. CDA has become famous for having a positive start-up ecosystem that supports new businesses. It has the highest density of start-ups in the whole of Idaho, meaning you have the opportunity to join a business that develops over time for better career progression. There is also a high proportion of medium to large businesses, showing that start-ups don’t just survive but thrive in Coeur d’Alene.
#8. Higher Education Opportunities in the Local Area
Whether you want to develop yourself or send your child to a good college, there are huge opportunities for higher education and further development locally. The North Idaho College Venture Center offers an eight-week course in launching a business, focusing on technical skills, intellectual copyright and venture development. You’re also round the corner from Franklin University and Spokane Community College. Higher education in CDA is catered to both adults and younger learners, so anyone can develop their skills.
#9. Exceptional Local Schools For Budding Learners
Local schools in Coeur d’Alene are among the top 20% in Idaho. Among the best local schools are the Coeur d’Alene Charter Academy, and Dalton Elementary School. The schools in CDA rank above the state average for maths and reading by an average of 10%. If you’re relocating your family to Coeur d’Alene, you’ll find that from elementary school through to college, you and your family will be fully supported in your education and development.
#10. Quality Local Agencies To Help With Your Business Branding
Not only is CDA a great place to start a business, but it’s also a great place to grow one. There is a thriving community of local agencies ready to help expand the reach of your business. BestCDA.com is a popular local online platform that helps grow businesses by reaching thousands of residents and tourist in the Coeur d’Alene are. Businesses place a permanent full-page listing on the site and highlight upcoming events, deals, news, press releases and more.
#11. Preferable Property Tax Rates
The local area wants you to come here, which is why the property tax rates are better than the national US average. The property tax rate is only $6.16, over $5 below the US average, while property taxes paid annually are over $400 cheaper. Homes are also on average 10 years newer than the rest of the US, meaning that those settling in Coeur d’Alene can enjoy properties that last longer. Over 20% of homes in Coeur d’Alene were built in 2000 – 2009, which is 6% greater than the rest of the US for that decade.
#12. Coeur d’Alene is Beautiful
Coeur d’Alene is home to its number one beauty spot, the Coeur d’Alene Lake. The lake supports a thriving leisure hub, including water sports and cruises. As well as this, you have thousands of local walks and nature spots like Tubbs Hill, which has 165 acres of trails, local wildlife like eagles, and photo opportunities. McEuen Park is also right by the beach and offers the perfect place to dog walk and explore the beautiful sun spots nearby.
#13. Thriving Local Festivals And Events
McEuen Park is also home to festivals and events for all ages, from the summer Live After 5 events to its yearly BrewFest celebrations. Events cover everything from classical music to an annual beer festival, so there’s truly something for everyone to enjoy. There’s also events for cars and yachts, Holiday Lights and much more. Essentially every event on the calendar is a cause for celebration at Coeur d’Alene.
#14. You Can Have Holiday Adventures At Home
Coeur d’Alene has a huge range of adventure sports and thrilling activities. Every aspect of extreme sports is covered, from off-road dirt biking to water sports and even horseback riding. Highlights include visiting the Rider Ranch, CDA Parasail and Brooks Seaplane Service Tours. CDA is also home to the local Silverwood Theme Park, which is home to over 70 attractions, its 191ft ride Aftershock, and many more. There’s no shortage of fun things to do in CDA.
#15. You Can Slow Down And Enjoy A Leisurely Pace
Coeur d’Alene is such a versatile place that it can accommodate thrill seekers and leisure-seekers alike. CDA is home to many river cruises, with packages that take you down to Chatcolet Lake with a glass of your favorite merlot as the sun sets. Once you’ve enjoyed your river cruise you can also settle down for a massage at Coeur d’Alene Spa. If you’re making a move to Coeur d’Alene Idaho from a busier location, you can relax, slow down and enjoy a pace of life that suits you.
#16. Become Part Of The Local Arts Scene
Coeur d’Alene is home to a local arts scene which is steeped in heritage: The Arts on the Green festival is in its 54th year of celebration, with 3 days of free entertainment including local musicians, artists and performers. Many of the local artists have exhibits at the local Art Spirit Gallery. If you’re looking to become an artist yourself, there are hundreds of local art classes to consider, like Emerge, a local group funded by the University of Idaho and Coeur d’Alene Tribe.
#17. The Proud Heritage Of The Coeur d’Alene Tribe
The Coeur d’Alene Tribe is the name given to the Schitsu’umsh tribe by the French traders that would trade with them. It translates to ‘Heart of the Awl’. The awl is a sharp tool and the name was a testament to the tribe’s superior craftsmanship and dexterity. The tribe’s true name, Schitsu’umsh, means those who were found here, and the tribe itself has been in the local area for thousands of years. Now the tribe presides over 340,000 acres of land across Palouse country in the Northwest. The tribe is a proud investor in local businesses and sponsors many creative and entrepreneurial partnerships in CDA.
#18. Have Fun In Downtown Coeur d’Alene
Downtown Coeur d’Alene was founded in 1888 and has been the city’s vibrant center ever since. There’s 125+ shops, restaurants, bars, beaches, parks – everything you’d ever need for entertainment and leisure. Nestled around the lake, you can sip a cocktail by the shore at Whispers, or visit the premier hotel in the whole of CDA, the Coeur d’Alene Resort Hotel. The hotel today is more than simply accommodation but a hub for many local events and activities.
#19. Become A Skier Without Traveling Far
Coeur d’Alene has multiple ski resorts within a 30 minute drive of your home. There’s the Schweitzer Ski Area, Silver Mountain and Lookout Pass, all extremely close by the city. There’s an option for summer and winter skiers, beginners through to experts. Schweitzer is just like a little Alpine town, meaning you can sit there and sup a warm beverage while your friends ski, or learn the ropes in one of the best resorts in the US.
#20. Experience The Local Wildlife
Coeur d’Alene is surrounded by woodland, sea and mountain regions, which makes it home to a hugely diverse range of flora and fauna. Wildlife includes caribou, bears and wolves in the woodlands, through to hummingbirds and red-tailed hawks in the mountain areas. You can snorkel in the waters of the lake and see the local sea life. Every area is home to a new and unique aspect of the local ecosystems.
#21. You Can’t Beat The Local Cuisine
Coeur d’Alene’s thriving tourist sector means the local cuisine is influenced by a huge range of communities. For traditional American at its best visit the Collective Kitchen Public House on Sherman Avenue, while Cafe Carambola is home to Latino fusion food further down the Spokane River on Hubbard Avenue. There’s Italian, English, Mexican, and many more cultures to be sampled in Coeur d’Alene and the surrounding areas.
#22. The Music Scene Is Fantastic
The music ranges from slow jazz to heavy metal – there’s something for everyone in CDA. Coeur d’Alene Cellars Winery offers both the finest wines and the most relaxed live music in Idaho, while the Moose Lounge is home to a variety of local bands catering to all kinds of music lovers. Many of the local lounges – like Mulligan’s Bar & Grille – are also home to homegrown American cuisine alongside a relaxing music scene.
#23. Beautiful Beaches of Coeur d’Alene
There are many beaches in Coeur d’Alene – in fact even the local City Park has a beach! Sanders Beach offers a glorious view of the shores by the Resort Hotel and Spa, while Coeur d’Alene Lake has its own silky sandy beach. To top off the beautiful beaches, Coeur d’Alene typically enjoys less than the national average of rainfall and has almost 180 days of glorious sunshine each year for you to spend down by the coastline.
#24. It’s An Excellent Place To Raise A Family
Niche.com voted Coeur d’Alene the third best town to raise a family in Idaho, and the fifth best suburb. It scores highly for local schools, outdoor activities, health and fitness and local job opportunities. You’ll have all the tools you need for your family to succeed in Coeur d’Alene. You can raise your children in the great outdoors, in a healthy environment. Your kids can go from elementary school all the way through to college or uni in a supported and happy city.
#25. Lower Living Costs
Compared to other US cities like New York or Seattle, CDA enjoys far better living costs for the same local amenities. Expect to spend 50% less on everything from books to food and living costs, so you can enjoy a larger disposable income than you’d see anywhere else in the US. You’ll have more money to spend on your family, your leisure time and your future.
#26. You Save Money On Commuting
The average commute time in Coeur d’Alene is 20 minutes. That’s because everything you need is round the corner – shops, ski resorts, schools. The most common form of transportation is the car and most things are a 30 minute drive or less away. The average commute time in the US is almost 30 minutes – leaving you 10 precious extra minutes of your life each day to spend with your family in CDA.
#27. Coeur d’Alene Is A Great Place To Retire
Coeur d’Alene isn’t just for the young, graduates and families, but those looking to enjoy their leisure years in a beautiful setting. The combination of better value for living costs, stunning surroundings and the short distance between local shops and restaurants make it a great place for those looking for a slower pace of living.
#28. Experience A Better Quality Of Life In Coeur d’Alene
Coeur d’Alene is a beautiful area, with a bustling community, numerous job and business opportunities, and a robust education sector. People relocate to Coeur d’Alene for preferential property tax rates, shorter commute times and a positive climate to launch a business in. The better value for money in CDA means that you can enjoy skiing, off-road quad biking, and a leisure cruise for a fraction of the price compared to other locations in the US.