" Mom and Pop " LLC ??? Curious

[tobym333 10]

whats up everyone , last night I was thinking about trading and taxes ... What is the norm for retail traders when it comes to protecting them selves and taxes? Do yall create an LLC "Mom and Pop " LLC to get lower taxes ? Maybe Im not phrasing my question correctly because Im really not sure the details. Just curious and wanted to see if anyone have had the same ideas ? thanks in advance !! Semper Fi

[UrmaBlume 10]

whats up everyone , last night I was thinking about trading and taxes ... What is the norm for retail traders when it comes to protecting them selves and taxes? Do yall create an LLC "Mom and Pop " LLC to get lower taxes ? Maybe Im not phrasing my question correctly because Im really not sure the details. Just curious and wanted to see if anyone have had the same ideas ? thanks in advance !! Semper Fi

 

In my experience LLCs are setup so that they pass profits to the members. Along with the profits, the tax liability for the profits is also passed along to the member. Some of my trading is in an LLC and some is as an individual and I see no difference in the rate of taxation.

 

If the LLC retains the profits then the LLC pays the taxes. Either way, as a legal lay person, I don't believe that just forming an LLC offers any protection from taxes on trading profits.

 

My understanding is that the "blended futures rate" of taxation is available to both LLCs and their members as well as to individual traders.

 

If you can find a legal way to protect trading profits from taxation then you are well ahead of the game and the rest of us.

 

 

cheers

 

UrmaBlume

[handle 10]

Look up Trader's Accounting Traders Accounting - Services for Day Traders - Taxes, Accounting, Business Strategy out of Arizona.

 

They will provide you the tax advice you are looking for.