Hi Does anyone here currently trade under a H/W partnership? I've tried searching prior threads for info, but only found one, and it confused me. I am trying to clearly list the pros and cons of a H/W partnership vs an S corp. From what I've been able to glean from Robert Green's website, H/W partnerships can be excellent choices for many traders. I was wondering if you can deduct health insurance as well as other business expenses under a H/W partnership. Also what are the advantages to an S corp that a H/W would not offer? if PRogers82, FT71, JoeYata and anyone else who actually trades for a living can contribute, would be greatly appreciated... Thanks so much ES 335
A partnership comprised of a married couple has many of the same tax attributes as does an s-corporation or an LLC. Each entity type has various differences that may sway your decision one way or the other. As described above, if the only people involved are a married couple, then one might not see any significant additional tax benefits using an LLC or an s-corp as the trading entity. Yes "you can deduct health insurance as well as other business expenses" including a retirement plan contribution under all three entity types mentioned above. In many cases, to some extent you can also get deductions as a sole proprietorship. If you want more details on the differences you might try typing "Why Form Your Own Entity" into Google for a write up I have on this.