is it possible to forego paying any taxes on trading profits by utilizing a " coporate sole"? go to : libertyfellowship.net. has anyone done this? g.j.
Hi gjmason, this is a very interesting link (BTW, the direct link is http://members.aol.com/liberty097/index.htm ) Cost to set up a Corporation Sole (C.S.) could be a concern, which seems to be around $10K: "Cost to set up and maintain a Corporation Sole can be considerably less that a comparative level of protection in a Trust. The initial (umbrella) Corporation Sole for a church or religious society could cost you upwards of $10,000.00 or more. You may be taking your chances with less expensive ones of $500.00 to $5,000.00. Top professionals who pay attention to the detail required to develop and support the Sole donât work for nothing. The paper-mills that just run them off the computer to make a quick buck should be avoided at all cost. The price of the Corporation Sole should depend more on the attention to detail and the level of service that you are getting than on the cost of typing and printing." Apparently, Liberty Fellowship helps you set up this C.S. Have you contacted them to find out how much they charge for this? What about just starting a congregation under an existing church, e.g. the Universal Life Church? Would that do the same in terms of tax sheltering? Does it require more than one person to start a C.S., e.g. an overseer and a secretary? Can you work at a job (wages or salaries) as a C.S. instead of an individual, and not have to pay income taxes and SSI? Can a professional trader (Series 7 licensed) work / trade as a C.S.?
I don't see any problem with pretending to be a charity to avoid paying federal income tax. Then you can use the savings to build a bomb shelter and stock up on beans and candles. And then fortify it with 20 followers and defend it with your life. The government is out to get you, they want your 72 ford, 1/2 acre of swampland and your dog. Run for the hills. Or you could just buy 2 Million in Liability Protection from your insurance agent for about $175 and deduct legitimate expenses like the rest of us.
I would think that an intelligent group such as we have here could come up with a better scam than this ....
I pulled the following quote from the aforementioned website: Provides for Needs. Corporation sole can be responsible to provide for all you needs (i.e. shelter, food, transportation, clothing, medical, etc.) This occurs by first conveying all that you own and all future earnings to Corporation sole. You make a record vow of poverty. This lets the world know that you are now a pauper and own nothing. If you work outside Corporation sole, you do so on behalf of the Corporation Sole. None of these earnings are taxable because they are paid directly to the Corporation Sole. These payments are made without deductions, diminishments or taxes of any kind. You DO NOT become an INDEPENDENT CONTRACTOR. (While not everyone chooses to make use of this option right away, it is always available to you). It may be awkward to do it with your current employer (even though it would save him taxes). However, it is very easy to set this up with any kind of business. And let's see using our "Where's Waldo" investigative techniques using the following link to the IRS to SPOT THE DIFFERENCES. http://www.treas.gov/irs/ci/tax_fraud/doctrusts.htm Until tomorrow, good trading.