Taxes with an LLC

Discussion in 'Taxes and Accounting' started by TraDaToR, Jun 3, 2009.

  1. TraDaToR



    What is the level of taxation you get trading futures with an LLC( you are the sole partner )? In general terms, for all taxes...

    For 50K of trading revenues? 100K ? 500K?

    Thanks a lot.
  2. cstfx


  3. gearhead


    LLC is a pass-through entity. As such, you get taxed on the income from the LLC just as if it was personal income. If you're trading futures, the net capital gain is taxed as 40% short term capital gains, 60% long term capital gains (don't ask me why that's the rule, but that's how 1056 contracts (futures) are currently taxed)

    Your actual tax rate depends on your total income, not just the gains from futures.
  4. TraDaToR


    Thanks a lot, guys.
  5. and you get the pleasure of paying double SSI...
  6. cstfx


    Only up to the current cap of 110k./yr. Surely most here are making considerably in excess of that amt, no?
  7. The income flows through; the LLC doesn't pay SSI.
  8. everyone pays double SSI. If they work for a company, it pays half. Self-employed, you pay all. There is no way out short of cheating on taxes.
  9. SSI is not double, its just that w/o an employer paying 50%, the self-employed pays the whole amount. I am not sure about the treatment of any gains as income being subject to SSI taxes. Someone here likely knows though.
  10. Bob111


    you are wrong and you have no idea what you are talking about..QQQBALL 100% are wrong X2 in this case,because ALL LLC profits are capital gains
    #10     Jun 3, 2009