Trading as an entity

[Aaron]

I'm considering a one person LLC so I can have a retirement plan. With a one person LLC is it possible to pick a salary amount such that I can put the entire amount into a tax advantaged retirement plan and not have to pay any social security tax on it? What kind of retirement plan would work for this?

 

[Don Bright]

Originally posted by Hamlet



It seems that the only advantage you can cite about a sole proprieter recieving k-1 income is his not being required to pay 15% s.e. tax. You fail to mention any of the advantages of being an entity. A retirement plan is a notable one. Having the entity provide you with such things as a company car, for example is another. And your odds of having to deal with the hassle of an audit drops by a factor of about 4 to 1, depending on the type of entity used.

Careful with car!!

Don

 

[vulture]

Anyone trading in the state of Illinois might also want to look at the LLC fees for incorporating and maintaining records...Without a doubt, the highest in the nation...Wonder if that has something to do with all the guys at the exchanges and all the smaller trading firms...hmmm...