Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

tobym333

" Mom and Pop " LLC ??? Curious

Recommended Posts

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

Share this post


Link to post
Share on other sites
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

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.