If the tax plan miraculously makes it through, I'm wondering if it's worth going through the hassle of forming a corporation. Started pondering when Obama extended the lower corporate tax rates a while back. The biggest obstacles I have is needing a board of people I'd trust to stay on and have meetings, somehow using corporate money to reduce my own personal expenses, and the IRS not looking kindly at my hypothetical Corp. and judging it a blatant attempt of tax avoidance. Oh and not even having a business plan yet. Thoughts, experiences, criticisms?
I did years ago. Used a local attorney. Suggest looking up LegalZoom.com for ease and pricing. When you trade via a corporate entity, there are some hoops to jump through. Check them out before taking the plunge.
Dude you don't need a board of people you can be the only director. It is completely fine to have a corporation that trades its own money, there is no hypothetical corp., you're investing asset into a corporation whos then sole activity is to invest in the market. Just make sure that your corporate taxes + dividend taxes is smaller than income tax (as ideally at some point you want to take some money out of the corp to your name) ... in the US it currently isn't the point. In europe you pay 45% income tax vs. 20% corporate + 20% dividends and what most people do is just park money then move to a low tax country and take everything as a dividend.... thanks to FATCA if you're american you can't do that as you'd be taxed anyway if you move to another country In the USA you might want to do a LLC which is taxed "look through", e.g. you pay "income tax" but you can deduct business expenses easily
I'm guessing your talking s-corp? I thought llcs and s-corps didn't get corporate rate? Does the Trump plan include these entities? I'm gonna have to read up on this.
European taxes vary wildly depending on the country. You'd be paying anywhere from 10% to 60% all-in. More than one country in Europe has no corporate tax. Treating Europe as a whole is almost always a mistake because it's almost as bad as saying "taxes in Asia are like this".
This is the part I struggle with, how do you use corporate money for personal expenses? I get I can buy an exotic if there's a business use, and fly around the world if I prove a business link, but what about buying a washer for my house, or having a nice dinner that doesn't involve networking?
hahahah You do realize everything you post on a public forum .... ahhh.... nevermind lol. I wanna be on the BOD. We'll make it a sub-chapter VZ corporation. We can locate the washing machine at our strip club... and we'll serve food. Problem solved.
Hmm, tips are refunded as business expenses at my current job. And a lap dance technically is a service rendered.....I like where this is going.