Yes, but I use a partnership not an LLC myself so what I do doesnât apply to your question, but an LLC is a pass through entity where all your income or gains are passed directly to the members of the LLC per the operating agreement (earned income passes as earned income, capital gains pass through as capital gains). So it all depends on how you set up your LLC, like how many members there are, and how exactly the operating agreement is set up because that should lay out exactly how it all works and how any salaries are paid or cash distributions are taken. Another example of how knowledgeable professionals are needed to do this correctly.
I was saying it âgrowsâ tax free. As to the other, you are right I was not clear enough because it gets very complicated, e.g. defined benefit plan vs. defined contribution plan. All of that is not only beyond the scope and complexity of this website, it goes beyond most sites because there are many ways to do things depending on who you are and what you are trying to accomplish. My only point was there is not right answer for all traders even if they appear to be basically similar at first glance.
