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If Taxes Rise, Should You Form An LLC or Incorporate?
- Thread starter TraderZones
- Start date
Quote from enkidu007:
US is the worlds biggest tax haven, I don't know why people would try to leave.
it is, but in case that you don't know-US tax it's citizens worldwide. #2-offshore mean that the country not taxing the business if profits are earned outside of country of incorporation. use search on google. it does help
here-first link from top-
http://www.us-llc-for-non-residents-of-the-usa-incorporate-llc-in-us.offshore-companies.co.uk/
A US LLC can be used in the same way an offshore business company registered in a Tax Haven may be used if you do not plan to trade with the United States.
Quote from Bob111:
it is, but in case that you don't know-US tax it's citizens worldwide. #2-offshore mean that the country not taxing the business if profits are earned outside of country of incorporation. use search on google. it does help
here-first link from top-
http://www.us-llc-for-non-residents-of-the-usa-incorporate-llc-in-us.offshore-companies.co.uk/
Thanks, so i read recently that msft, google, and intel all put there revenue centers in ireland and expenses in US is that the same as offshore?
yes. instead of reducing the taxes,encourage businesses to be in US,having low,balanced budget ,US govt doing exact opposite. raise taxes and expand government to get their hands on few individuals,who happens to be smart enough and have their money outside of US. we all know how it's works..it's start's at the Clinton's..they tax more-companies outsource. who won?
Quote from TraderZones:
I owned an S corp. You must pay out a salary that makes sense for the position, to get it by the IRS. You cannot pay yourself $16,000 a year as "President" and take out $100,000 a year as "distributions" from something like trading. It works until you are caught, then you will owe taxes, penalties and interest. And probably significant legal/CPA fees, trying to defend yourself.
And still, it is a lot easier just to put yourself as "unemployed" and take cap gains. [Especially with futures trading using the 40/60 short/long term rule.] You have no self-employment tax and have lower taxes in general.
Few traders need the "liability protection" provided by a corp/LLC. It does not protect you against anything not related to the trading of the biz. Not too many people slip and fall on your trading activities. And if you go into personal bankruptcy, the LLC/S corp is one of your assets, and will be taken. And few brokers will let you trade sch an account, unless you personally sign and guarantee against losses, as well.
.
I was speaking about S-Corps in general as a better vehicle than LLCs, not specifically for trading. I own several S-Corps but I trade through a personal account for the very reason you state.
The reasonable salary requirement is correct but if a business is successful, the owner should be getting a lot more than a reasonable salary.