This is what our accountant advised us last year because we were just starting out. We have a dormant S Corp, and I look forward to making significant enough money in the near future that we can use it for the exact reasons above.
I never meant to air my business affairs to the world But to keep it real Realize I have it setup this way to manage money (I'll leave it to you to decipher this) Me & My Wife- owns 100% of Corp. 90% of LLC Files appropriate personal tax form Corp Gets all benefits allowed by law Owns 10% of LLC Is paid to manage the LLC Receives all profit from LLC (profit does not = all money made) Files appropriate business tax form LLC Gets all benefits allowed by law Hires me to trade Issues appropriate tax form Without going into specifics this is the layout I would ask y'all to do the due dilligence for your own situation I still believe an LLC is the way to go for most Redneck
I think so too, but the key is you have to elect to have an LLC taxed as an S-Corp. Also, the IRS really needs $ and they are putting a lot of money auditing business. Make sure that you have at least 2 people in the LLC, or else YOU WILL NOT GET THE TAX ADVANTAGES OF THE LLC. If you are a single memeber LLC you will not have the ability to elect to tax yourself as an S Corp where you save a TON on the self employment tax, hence you will have to pay self employment on 100% of monies.
Speaking of Traders Accounting, I'm thinking of purchasing two of their products: TAX SECRETS FOR TRADERS - FUTURES SERIES (NEW) TAX SECRETS FOR TRADERS â EMINI SERIES (NEW) Has anyone bought these CDs? Are they worth it? They sound quite convincing nonetheless and $150 for both is practically a pocket change. I make or lose more than that in a single tick move.
From their website, it appears that they assess your overall financial health and make specific recommendations on what course you should take. This also includes whether you should go the route of LLC or S-Corp. But since I had no prior experience with their service, I'm obviously a little hesitant.