Hello everyone,
does anyone know if the following scenario would be feasible? thanks
1) proprietary trader receiving a K1 makes $150K a year
2) he opens up an LLC with let's say 4 members(he's not a member nor a manager of the LLC). The LLC functions as an advisor to the trader. it provides trading advice, any proprietary programs, etc
3) the LLC gets paid a % of the profits. let's say $100K which is an expense to the trader
4) trader pays taxes on $50K while the remaining $100K in profits of the LLC is split among the 4 members.
would this be feasible?
does anyone know if the following scenario would be feasible? thanks
1) proprietary trader receiving a K1 makes $150K a year
2) he opens up an LLC with let's say 4 members(he's not a member nor a manager of the LLC). The LLC functions as an advisor to the trader. it provides trading advice, any proprietary programs, etc
3) the LLC gets paid a % of the profits. let's say $100K which is an expense to the trader
4) trader pays taxes on $50K while the remaining $100K in profits of the LLC is split among the 4 members.
would this be feasible?