Yes. An Idaho S-Corporation can distribute profits to the owners/shareholders, keep them as retained earnings or do a little of both.
The difference between a Coeur d’Alene S and C-Corporation is that the C-Corporation makes this decision after 21% corporate taxes are paid. Thereafter, there is no additional taxes to owners/shareholders until money is paid through a dividend.
An Idaho S-Corporation doesn’t pay taxes. The owners/shareholders pay all the taxes on the company’s profit, no matter what the company does with that profit. Retained earnings can become a serious issue since owners/shareholders get taxed on profits regardless of whether they actually received a cash distribution from the company.
For Tax Resolution or Tax Preparation services in Coeur d’Alene Idaho click here.
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