Pros and Cons: LLC vs S-Corp

FWIW & IMHO


I use them


So if you put any stock in the stuff I post

Try em - You can always say no - or walk away

If you don't - then no use in me saying try em


Take Care
Redneck

 

Redneck trader,

Interesting structure. Just curious to know when you say Corp? Are you talking about a C corp or an S Corp?

Your C Corp that owns 10% of your LLC? Or an S Corp?

thanks

 

Redneck gets it. The tax laws are corp laws are there to be used and from my limited experience with the IRS if you use their rules to save taxes your OK. I wish I had an accountant go over this with me. I had to learn it the hard way, from setting up the wrong corp structure and from countless hours reading and research. You can get some information and ideas on corporations at http://www.taxguru.org/
I don't think he is taking on new customers though or at least when I asked a few years ago he wasn't.

 

here's some hypothetical scenarios:

1) if you have a capital loss carryover from stock losses, can future profits from trading futures be applied against it?

2) if you have a MTM ordinary income NOL carryforward from stock losses, can future profits from trading futures be applied against it?

 

"C" Corp

Due to corp tax rate being a lot better and the way dividend payouts are handled

 

Thank you sir. I just found that out when I looked it up on traders accounting.

Seems like a good deal. This is something I am looking into.

thanks

 

Here's an excellent site for books on corporations and business.
http://www.nolo.com/

 

1) Yes, if you haven't elected MTM for the tax year in question.

2) Yes, if you have elected MTM for the tax year in question.

 

A note on traders accounting.

I had an absolute horrific experience at trader's accounting, and from what I have learned is that none of them can be trusted. Now I'm not saying that redneck you have a bad structure, but they absolutely cannot be trusted what so ever.


1. I'm like 99% sure on this but, I found out the guy giving me advice wasn't even an accountant.

2. They sell you on this C-Corp / LLC model. For most people this is a complete waste of time. The only reason to make a C-Corp is so you can deduct medical expenses. You do the math, but for most people this is a headache that's isn't worth it.

3. Now keep in mind with this C-Corp, you need to keep documentation, minutes, and everything that goes along managing this sucker. After I told them I wasn't interested in the C-Corp they told me a complete lie. They tried to sell me on bookkeeping for the LLC every month, and even said that you MUST keep monthly documentation for the LLC or the IRS won't recognize this as a legal entity. Of course this is not true.

I could go on and on about the horrific experience at Traders Accounting, but all in all, is these slime bags 100% cannot be trusted. And the problem is, if they tell you "you really need to buy this" how do you know if you really need it, then you have to reserach it yourself.

BEWARE!!!!!!!!

 

Here is another deceptive thing traders accounting uses. They sell you on the idea that a C-Corp has a lower tax rate than an S-Corp / LLC. But you will NEVER have your C-Corp make money, why would you? You'd be double taxed. You'd pay the C-Corp rate, and then you'd pay the personal rate. The C-Corp is there to deduct the medical expenses, and should NEVER be there to make any money... yet they sell you on the fact that a C-Corp has lower tax rates.

again, you just cannot trust this firm