Hi, I'm figuring out the best way to pay taxes and I found the website www.tradersaccounting.com They seem like very knowledgable guys, as they have this idea that I do 1) Set up an LLC. 2) Set up a C-corp which is a memeber of the LLC 3) you are the other memeber of the LLC The reason why you do this is... 1) So you can write off stuff and not pay the self employment tax. If you created a regular LLC and just had one person in the LLC you'd have to pay the self employment tax 2) The C-Corp is a managing partner of the LLC, you pay the C-Corp a fee for this management. The reason why you form a C-Corp is because you can put $45,000 into a traditional IRA, if you just had an LLC you'd only be able to write off $15,000... also you can write off medical expenses in the C-Corp In order to set this all up it will cost initally ~4500 Each entity will need to file a tax return which is 600 / tax return / year / entity, and book keeping @ 100 / month / entity so to maintain this structure will cost $3600 / year. I was hoping to have some discussion to see if it's really worth it. or perhaps if there is a less hassle free way. Thanks
There's no reason you can't create this entities yourself. Let them do the taxes for the first year and then copy their returns in future years.
Check out Robert Green at Green Trader Tax his setup leaves out the C Corp. Should be cheaper on doing the return and not so much bookkeeping and all the hassels of having a C corp.
If Congress would get their act together and pass the FairTax, all of the above nonsense would be academic. What's my point, well nothing really, it's just ridiculous that we have to go through such gyrations, when taxes could be so much simpler. So until we get the FairTax passed carry on.
SKY, I would definitely avoid Traders Accounting. They are suggesting all the entities to benefit them, not you. I used them and had one of the most frustrating and ripped-off experiences I ever had in my life. I've already posted my experience with them here and don't want to get in details again. They refused filing electronically, and I was wondering why at that time. Later on, I found out that they are not registered under the Arizona Board of Accountancy. I seriously question the legitimacy of their business.
thank you for that update. I'm going to file my taxes this year, which I can't claim as a trader anyway with them, because I already paid for that... but I'm going to take your advice and not set up the LLC / C-Corp with them Also it's kinda funny the guy who you speak with telling you all the accounting advice....... he's not even an accountant lol
Just use Green. His company has been doing it longer than anyone, he has written books on it, and I have personally had good experiences with them.