LLC Brokerage Account

Quote from JohnTrader:

Does it mean that by deferring the profit to the later date and instead of paying taxes you may reinvest that portion and make more profit, assuming you goanna make money trading the "tax portion money"?
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Yes, I was imagining that is what one would do.
 
With my limited knowledge, the LLC is a passthrough entity. I don't think it provides the tax advantages that the other member suggested.

And the wash sale is another issue. You can file MTM with either LLC or indiv.
 
Quote from chuzek:

Likewise, I'm not tax expert either. I suppose you'd only be able to deduct commissions and possibly any losses that are realized.

I think the benefits would arise from being able to defer taxes on gains by keeping them as retained earnings within the LLC. So if one wanted to retire in 10 or 20 years, you would have a lower personal income and it would then be better to pass on the gains.
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no..this would apply to C corp. there is fed 15% tax (could be some changes on and after 2011, thank you Barry O) on first 50K profits.
as been stated above LLC is pass-trough entity and treated by IRS that way. you pay your taxes on total profits(and share losses)according your % of membership in this LLC, regardless, if you take the money from LLC or keep them in it

chuzek-you can easily educate yourself about different forms of incorporation, that may satisfy your needs. there is a plenty of info on internet or cheap used books on amazon. but ...from my experience bottom line will be very simple-there no significant tax benefits in it.
unless-you come up with something really creative(and that may lead you into trouble with IRS)
trading is pretty straight forward business..there is very little "business expenses" and trust me-IRS ain't some fools that would eat some bs like your lunch deductions or "business travel" expenses

here is good website-

http://www.traderstatus.com/tradingentity.htm
 
Quote from JohnTrader:

In that case, is there any way not to pay taxes but reinvest profits and pay taxes only when the owners get the money?
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yes..it's called IRA account :p
but on serious note-no. at least- i don't any ways arounnd it. not in corp. world. no such thing as make money now,pay taxes 40 years later.. uncle same wants your money now. did you ever notice,how fast they(IRS) cashed your tax check?
 
Quote from krazykarl:

because OP mentioned supplying money to the LLC.
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and? i would appreciate, if someone point me to a proper IRS publication about it.
about how supplying the money to new or established business will reduce your tax bill.
when you buy 100 shares of AAPL or GOOG or invest 10K into Qadriga superfund(also LLC btw)-you became a partner,member in case of LLC. does this reduce your tax bill?
 
Quote from chuzek:

True. But say you owned 100%. If you didn't want to accept the profits for a given year, you can defer them for a later date that may be more beneficial.
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If you own 100% of LLC, you will be treated as "disregarded entity" for tax purposes, which means all LLC activities are to be treated as if you were an individual. By the way, tax code does not recognize LLC as entity. When you apply for federal ID number you have to select tax treatment either as corporation (S or C status can selected later) or partnership.

Also not sure how you can "defer profits" - your broker will send info to IRS based on cash proceeds.
 
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