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LLC Brokerage Account
- Thread starter chuzek
- Start date
Quote from dstrader:
Can someone give the pros and cons of establishing an LLC (if you have done so, not just book theory). What you have found to be the REAL pros and cons (e.g. are you charged more for data fees, etc.)?
thanks!
it's been discussed here like 1000 times already..
http://www.traderstatus.com/whyanentity.htm
Would appreciate recommendations for accounting groups who specialise in LLCs for individual and Prop traders.
Why would it? Your tax bill isn't reduced when you buy a sandwich. Generally, tax is on income; the acquisition of assets (be it a cashflow generating asset or a consumable asset) has no impact on taxable income.
Quote from Bob111:
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 sjfan:
Why would it? Your tax bill isn't reduced when you buy a sandwich. Generally, tax is on income; the acquisition of assets (be it a cashflow generating asset or a consumable asset) has no impact on taxable income.
that's what i was trying to explain to OP. see his first post
Quote from chuzek:
Could people discuss the benefits and drawbacks of opening a stock brokerage account as an LLC?
Wouldn't personal funds provided to the LLC for trading be tax deductible business expenses? Wouldn't all retained earnings be tax free until distributed to member(s)? So one could essentially defer taxes until a later date and reduce personal income tax at the same time?
Thanks
with an llc one of the only benefits you get is the ability to hide behind it. otherwise you still have to claim mark to market with the irs the following yr if ur trading stock because it's not going to eliminate wash sales as a corp would. you can write things off though like computers and magazines.
Quote from chuzek:
Could people discuss the benefits and drawbacks of opening a stock brokerage account as an LLC?
Wouldn't personal funds provided to the LLC for trading be tax deductible business expenses? Wouldn't all retained earnings be tax free until distributed to member(s)? So one could essentially defer taxes until a later date and reduce personal income tax at the same time?
Thanks
Just spoke to my cpa, no you cant defer taxes even if you dont take profits... Your only remedy is mark to market accounting that will take into account any loses you may be holding even if the stocked havent been sold yet....
Nick