TA wanted to charge my 3k for a combo LLC/C corp. I said no thanks. I went to Paul Mann at daytradertax.com. He is here in Denver, so it's a plus I can meet with him in person. Paul charged me $500 for my LLC set up and that included an hour of consultation. I don't use him for taxes because my old CPA from my sales days does fine. I think Paul wanted about $600 for my taxes for my LLC. He is good and reasonable. And no I am not affiliated with him. He just did right by me. Dan
Paul charged you $500 for a LLC not a LLC/C-Corp combo, whereas TA quoted you $3000 for the combo. There is a difference between the combo and LLC IMO.
Yip-Paul told me you don't need the combo, it way more complicated for someone starting out like me. Why would he lie? So he could get less money from me? He could have done both for $1000 anyway. After doing my due diligence I felt like TA was trying to sell my the caddy when I just need a corolla to start out.
Dan, I agree that you don't need combo if you trade your own money. Combo is only for traders who want to trade OPM. A simple LLC will be fine. Did you open your LLC in your home state or Delaware? I don't understand why you didn't open a C-corp. Do you realize that you, as the manager of the LLC, have to pay FICA tax for all the profit from your LLC. Can you set up solo-401K to reduce your profit from your LLC?
I have read this entire thread. TraderStatus is the only one here worth listening to. Most of the other "advise" is dangerous. Bob
I am thinking of getting a CME EME membership to save on round-turn costs. I trade part-time and have a job. What do you guys suggest? I am not comfortable with the FICA, SS and other taxes associated with LLCs. Any suggestions much appreciated - esp. from people with CME membership.
SideshowBob, you indicate that you have made the MTM election, yet you are concerned about saving on professional tax advisory fees. There are some complex features associated with the MTM election. If one is inclined to do it themselves, they might consider doing their own colonoscope also. Q4.
A C corp would definitely get one double taxation since it is not pass through entity. My LLC is in my home state of CO.
Dandsg, the profits from a trading business, whether LLC, sole proprietorship, etc., do NOT qualify as "earnings" for purposes of a 401(k) contribution. Bob
What's wrong with a do it yourself colonoscopy? I didn't say I was averse to paying profession tax advisory fees per se, I'm more concerned about overpaying them....