Husband Wife General Partnerships

E

ES335

Hi

Does anyone here currently trade under a H/W partnership? I've tried searching prior threads for info, but only found one, and it confused me.

I am trying to clearly list the pros and cons of a H/W partnership vs an S corp. From what I've been able to glean from Robert Green's website, H/W partnerships can be excellent choices for many traders.

I was wondering if you can deduct health insurance as well as other business expenses under a H/W partnership. Also what are the advantages to an S corp that a H/W would not offer?

if PRogers82, FT71, JoeYata and anyone else who actually trades for a living can contribute, would be greatly appreciated...

Thanks so much
ES 335
 
A partnership comprised of a married couple has many of the same tax attributes as does an s-corporation or an LLC. Each entity type has various differences that may sway your decision one way or the other.

As described above, if the only people involved are a married couple, then one might not see any significant additional tax benefits using an LLC or an s-corp as the trading entity.

Yes "you can deduct health insurance as well as other business expenses" including a retirement plan contribution under all three entity types mentioned above. In many cases, to some extent you can also get deductions as a sole proprietorship.

If you want more details on the differences you might try typing "Why Form Your Own Entity" into Google for a write up I have on this.
 
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