question about taxes and trading as a LLC or corp.

J

jgold310

does anyone know of a web site where I can find information about getting set up as a company?

I hear there are legal ways of keeping more of your profits away from uncle sam if you set your trading account as a LLC or Corp. And if you live in a less tax friendly state like California you can open a shell company in Nevada and transfer some profits over to that state where the taxes are less.

Does anyone know anything about that here?

Thank you!
 
there is a benefit for filing taxes as a LLC. its not a huge difference. There are a bunch of sites like intuit that will charge you $500 all inclusive to set up your LLC, but just go to your state website and you can do it yourself for under $100.
 
Quote from jgold310:

I hear there are legal ways of keeping more of your profits away from uncle sam if you set your trading account as a LLC or Corp.

Depends on how your structure things. But you can make life a lot simpler if you fund and trade IRA accounts, and also, if you file as "unemployed" and all your earnings are cap gains.

And if you live in a less tax friendly state like California you can open a shell company in Nevada and transfer some profits over to that state where the taxes are less.

not really. You pay taxes in the state where you live. If you decide otherwise, you will get a knock someday on the door and huge fines for your efforts.

Does anyone know anything about that here?

If you are depending on advice from anonymous posters, you will have a rude awakening someday, at the least unexpected time. You get what you pay for. You MUST consult with a knowledgeable lawyer/CPA before setting up something like this.
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tradersaccounting.com is a good site as well. Setting up your tax strategy is a ton of trouble (like everything else) but it's worth it.
 
Quote from TraderZones:

Quote from jgold310:

I hear there are legal ways of keeping more of your profits away from uncle sam if you set your trading account as a LLC or Corp.

Depends on how your structure things. But you can make life a lot simpler if you fund and trade IRA accounts, and also, if you file as "unemployed" and all your earnings are cap gains.
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Can't fund IRA accounts unless you have earned income. You have to pay both sides of FICA on this income (you don't on cap gains). Does make sense to do this at times; however, as once its funded, it grows tax free. One of the only ways to really get ahead in expensive locations unless you really make big money. Its great when you have a few accts: IRA for pure wealth creation and no tax man, and regular cash flow acct for expenses and no FICA.

Definitely contact greencompamy.com. I have used them.

If you want a much cheaper overview, buy Robert Green's book - "traders tax guide" or something like that. Can get it via Amazon.
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