Idaho Sole Proprietorship - Idaho DBA
This form of an Idaho business is usually used for people with smaller operations. Maybe you sell some crafts or woodworking at local markets, or do a little landscaping on the side. It still is important to reserve your name with the state to protect the name you’re developing for yourself.
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Even if you are a small craft seller, you are establishing a name for yourself year after year of doing your trade shows, and it will be important to reserve a name to build your brand. Idaho sole proprietors can file assumed business name registration to help with obtaining bank accounts and other information, but if they want to actually reserve the name so other businesses cannot use it, they need to file a name reservation or incorporate the business.
Using this form of business structure is easy to maintain, and doesn’t require much paperwork. If you do not have employees and have a very limited liability exposure with machinery and other business equipment, this form may be a good option for you. It is the form of business, most people use in the early stages of starting a business.
Keep in mind that under an Idaho sole proprietorship, the owner is completely liable for all activities associated with the business. Once you establish your business and grow it, it is highly recommended to form some type of Idaho corporation to protect your individual assets. A lot of craft makers can get away with being a sole proprietor, if you’re a painter or woodworker, its highly unlikely your goods are going to do someone harm. If you’re selling jams, or baked goods and a local market, there would be more of a chance that your food could make someone sick, and it would be wise to form a corporation.
Plus, if you decide to incorporate your business, we can help you save 15% in self-employment tax by having an Idaho corporation or Idaho LLC and using the S corp election with the IRS.
The following are some of the forms you need with the IRS:
- 1040: Individual income tax return
- Schedule C: Profit or loss from a business
- Schedule SE: Self-employment tax
- 1040-ES: Estimated tax for individuals
- 4562: Depreciation and Amortization
- 8829: Expenses for business use of your home
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