Nevada corporation

A

AspenTrader

Hello traders, I just joined this message board a few days ago. Most messages were very informative and helpful. Maybe anyone of you can answer my curiosity.

I've heard that most traders set up their own corporation in Nevada to reduce taxes legally while they live in other States. Is that possible?

Does anyone know of any CPA firms that specialize in daytrading tax strategies?

Thanks very much!:)
Troy
 
as of this year, I made money for two year in a row. While I attest
to the merit of a Nevada corporation, better have a positive year
net, before you start.
The reason - the horrendous red tape and paperwork. payroll
tax and quarterly estimated tax. It will drive you insane, and will
be a cost to have someone do the books($2000 /per year)
sadly I chose to do my own books.
Also, if you don't live in NV, you must have to spend even higher
fees, for some residency and office to keep appearances. Cost
is appriximately the same as you would save on taxes. Isn't that
strange ????? Of course if you move to NV you can save some
$$$$. The Bright brothers did it !!!!!!:D
 
Aspen, despite what you may read, the chances are that your state will view your activity as tax evasion if you do not physically do business in NV. While it is true that some agencies will front an office for you, it is just that. There have been several articles in recent business press about just that. Chances are WSJ or Barrons is where I saw the most recent.

Unless you can find a CPA and Tax attorney to sign off on this, my thought is it is a bigger potential liability than the tax savings may justify.
 
Aspen, despite what you may read, the chances are that your state will view your activity as tax evasion if you do not physically do business in NV. While it is true that some agencies will front an office for you, it is just that. There have been several articles in recent business press about just that. Chances are WSJ or Barrons is where I saw the most recent.

Unless you can find a CPA and Tax attorney to sign off on this, my thought is it is a bigger potential liability than the tax savings may justify.
 
TopGun,

To answer your question the advantage of NV, FL, and Tenn and maybe one or two others like Delaware is that there is no state tax on trading profits, dividends or interest on holdings. Now that is not to say that you don't pay more in property tax and maybe sales tax. But net-net I am sure these states leave more in your pocket.

I live in NC and formally in PA, and get raped each year by state taxes. In NC I paid almost as much to the state as I pay to the feds, if I liked packing I would get a uhaul:)

Regards,
 
Many people are interested in seting up Nevada corporations.
I have set one up using a company in Nevada called Laughlin and Associates. They can even provide an office, shared secretary, suite #....everything you need to be legal. In order to get this package it would have to be weighed as the cost is about 300 a month. If the your trading net profit is big enough then it may be worth it. Just a note for what its worth.:)
 
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