Pre-nup, Pre-nup, the only way. But, if you're asking all this, perhaps just re-think the whole thing. Think "Goldie Hawn and Kurt Russell"....
Don
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Anyone trade through a C-Corp or LLC?
- Thread starter Sponger
- Start date
Pre-nup, Pre-nup, the only way. But, if you're asking all this, perhaps just re-think the whole thing. Think "Goldie Hawn and Kurt Russell"....
Don
Anyone have experience with entities outside the United States?
Ireland, for example, has European-style personal rates but a 12.5% corporate rate.
That's pretty damn attractive, considering Dublin is a sweet town.
Ireland, for example, has European-style personal rates but a 12.5% corporate rate.
That's pretty damn attractive, considering Dublin is a sweet town.
Quote from Adobian:
Could someone elaborate more on this 46K/year tax defer as SEP-IRA ? Does that depend on the percentage of the Corp's income or on the employee's paycheck ?
My accountant (Green & Co.) told me that the corporation gives the individual a paycheck, and amount you contribute to the SEP IRA (or mini 401k) is based on the amount of the gross paycheck. A mini-k is probably better than a SEP because you can contribute the first $15K.
12.5% is sure attractive... for an Irishman national. But if you are a citizen of the USA then the income is taxed to you here in the USA as well as a person who has controlling authority over the foreign entity. http://www.irs.gov/businesses/small/international/article/0,,id=154943,00.htmlQuote from archimedes:Anyone have experience with entities outside the United States? Ireland, for example, has European-style personal rates but a 12.5% corporate rate.
That's pretty damn attractive, considering Dublin is a sweet town.
Quote from traderstatus:
12.5% is sure attractive... for an Irishman national. But if you are a citizen of the USA then the income is taxed to you here in the USA as well as a person who has controlling authority over the foreign entity. http://www.irs.gov/businesses/small/international/article/0,,id=154943,00.html
Yes.
But as a US citizen, you can get exempted on your first $80,000--or somewhere in that neighborhood--as long as you are outside the United States for 11 months out of the year, for the purpose of managing the business.
I'm also fairly certain, but not 100% sure, that you wouldn't have to pay US taxes on the retained earnings of an Irish corporation, i.e. funds not taken out.
Last but not least, with civil liberties going down the toilet, the value of an American passport is declining slowly and steadily. For the right amount of money, US citizenship might be worth giving up. The added compound return from a dramatically reduced cap gains rate could be stunning over a 20 year period.
This is something I haven't done, but am looking into for down the road. Hence the inquiry.
I provided the link to the IRS website where you would could have learned that you are incorrect regarding the earnings retained in Ireland. "deemed dividends" are taxable here in the USA.Quote from archimedes:Yes.
But as a US citizen, you can get exempted on your first $80,000--or somewhere in that neighborhood--as long as you are outside the United States for 11 months out of the year, for the purpose of managing the business.
I'm also fairly certain, but not 100% sure, that you wouldn't have to pay US taxes on the retained earnings of an Irish corporation, i.e. funds not taken out.
Of course, as you say if one wants to MOVE AWAY from the USA, that's another matter entirely.
FOR USING AN LLC YOU DON'T PUT IT DOWN AS TRADER BUT AN INVESTMENT COMPANY AND YOUR JOB IS THE MANAGER OF THE LLC AND AS MANAGER YOU CAN DO ALL OF THE INVESTING. ALL YOU GUYS ON ET NEED TO DO ALITTLE THING CALLED THINK OUTSIDE THE BOX. WHEN IT COMES TO TAXES THERE IS NO RIGHT OR WRONG ONLY WHAT YOU CAN GET A JUDGE TO AGREE WITH. PICTURE THE TAX CODE AS A STRAIGHT STRING YOU JUST WANT TO CURVE THE STRING TO YOUR NEEDS NOT BREAK THE STRING THAT WOULD BE ILLEAGAL.
Quote from traderstatus:
Of course, as you say if one wants to MOVE AWAY from the USA, that's another matter entirely.
Yes. The scenario would require moving to Europe to make it work... and possibly giving up US citizenship down the road to fully maximize the opportunity.
Not an inconceivable thing, given the right mix of lifestyle and long-term opportunity. Trading hours in Europe seem superior anyway--Europe in the morning, US in the afternoon and evening, normal waking and sleeping hours.
Just wondering if anyone has done something like this or seriously looked into it.
The LLC should work. Just set one up a few months ago and will soon be doing all our automated trading through it. It takes little time and you get all those benefits already listed in this thread. I'm not a pro trader, but would just like to see how these TradeStation strategies I've developed will pan out in a real account. The LLC makes it legit and enables me to work with a partner.
All the best,
Adam
All the best,
Adam