TAXES: State & Local on Futures?

Discussion in 'Taxes and Accounting' started by nononsense, Sep 4, 2005.

  1. What are the tax implications, if any, in choosing a State & Town for incorporating (LLC or other) in order to trade futures?

    Thank you.
  2. Why do you want to incorporate?:confused:
  3. Banjo


    It's all over the map, some states will have a yearly registration fee that remains the same no matter the income, others will have a minimum that increases with increased income. Some municipalities will demand a biz lic if the address is within their boundries, others wont. The siuation has to be examined closely, i.e. exactly what it is you're trying to accomplish vs the expenses.
  4. Good question.
    Is taxation on futures profits in personal accounts in general (much) less than on corporate ones?

    The idea was to make the new entity owned by an existing corporation. However taxation-wise, this may not be the best idea. Maybe I better stick to private accounts?
  5. For a personal account, you pay tax according to 60/40 rule. You can avoid state tax by living in an income tax free state. How can you get a lower tax for a business account?