Everything You need To Know About Idaho Corporation Stock

Everything You need To Know About Idaho Corporation Stock

by | Feb 7, 2020 | EDU

Coeur d’ Alene Idaho Corporation Common Stock vs. Preferred Stock

When an Idaho corporation receives its charter from the state of Idaho, it can sell shares of stock to the public. The shares can be sold to investors, families, staff on an individual basis. However, an Idaho company can also opt to become listed with the stock exchange and sold on a much larger scale. 

An Idaho C-Corporation in Coeur d’ Alene can have two classes of stock: 

Common stock

Preferred stock

Even though the corporation can delegate more than one type of stock doesn’t mean that they must. 

Characteristics of Common stock

  • Common stockholders have the right to vote for the directors of the corporation, and preferred shareholders usually do not.
  • No rights to fixed claim to dividends.

Characteristics of Preferred stock

  • Preferred stockholders have the first claim to dividends, that is in any year when the board of directors declares dividends, preferred stockholder payments must be allocated before the common stockholder. 
  • Usually do not vote on directors
  • In the event of an Idaho corporation liquidation, preferred stockholders claim to assets take precedence over common stockholders. 

Coeur d’ Alene Idaho Corporation’s Capital Stock Explained

When a corporation receives its charter from the state of Idaho, it also receives the right to sell several shares of stock to the public. 

Each share represents part ownership in the Idaho company. The number of shares the charter allows the corporation to sell is called the authorized shares. The corporation can sell as many shares as it chooses up to this authorized amount, but no more. 

When the stock is initially sold to the public, the Coeur d’ Alene corporation receives the money. After that, the initial sale, when the stock is sold from one individual to another, the company does not receive those funds. Your Idaho corporation can sell stocks privately or the stock exchange.

There are two different kinds of stock:

  • Common Stock
  • Preferred Stock

Idaho Business Expense Guide

Idaho Business Expense Guide

by | Jan 31, 2020 | EDU

What Are Ordinary and Necessary Expenses in Hayden?

Ordinary and necessary expenses are expenses incurred by individuals as the cost of owning a business or carrying on a trade. “Ordinary and necessary” expenses are categorized as such for Idaho income tax purposes, and these expenses are generally considered tax Idaho 

The two biggest reasons why you might lose a business expense deduction are that you didn’t keep good tax records to prove your decision or you didn’t capitalize the expense 

You could also lose deductions if the IRS thinks you aren’t operating the business to make a profit. This is commonly referred to as a “hobby business,” and its sole purpose is to create losses to offset income elsewhere. 

Some ordinary business expenses in Post Falls include:
  • General Coeur d’ Alene business expenses
  • Labor costs, including a salary or other compensation you receive as the owner-employee of your own corporation
  • Repairs
  • Inventory
  • Mileage
  • Office supplies
  • Marketing and advertising
  • Phone, internet and office utilities
  • Travel Expenses

 

Idaho Business Expenses Defined

Expenses represent the cost of doing business. There no limits to what this includes as long as it is an expense that relates to your Post falls Idaho business and is necessary. Idaho Business expenses are the costs of running your business day-to-day. On your income statement, your business expenses are subtracted from your revenue. What’s left is your net taxable income. These “ordinary and necessary” expenses that keep your Idaho business running can be deducted from your taxes.

Example of cost include: 
  • Accounting expenditures
  • Depreciation of fixed assets assigned to non-production areas
  • Insurance costs
  • Legal fees
  • Office supplies
  • Property taxes
  • Rent costs for non-production facilities
  • Repair costs for non-production facilities
  • Utility costs