Boise Idaho Business Guide: Tax Implications
Taxes are another issue to watch out for when dealing with new finances for your new Idaho business.
Not only do you have to follow all relevant tax laws, but its also up to you to handle fundraising and expenditures in the most tax-efficient ways possible. Check with an accountant before starting a campaign to ensure that you have planned correctly.
What sorts of problems crop up when it comes to crowdfunding your Idaho business? An Idaho business ran a campaign that recently raised $50,000 in December of one year. His intention was spending the money on production costs the following year. However, he had not sought proper tax advice and ended up having to pay income tax on the $50,000 during the first year and could only partially recover the money the following year after using the funds to pay for production. All told, he lost $10,000 in taxes, a problem that could have largely been avoided had he run the campaign and spent the money in the same year.
Idaho Tax Code
In addition to comply with tax codes, organizers of Idaho crowdfunding campaigns must also follow rules associated with specific platforms, not to mention laws and regulations established by states and federal authorities.Click for Boise Payroll Service Click to Form an Idaho Business