|
Benefits Of Incorporation
D A Y T R A D E R T A X . C O M
Your one stop website for online trading tax laws
Benefits of
Incorporating your Trading activities
Many tax
consultants and trader tax websites routinely recommend
expensive and complex corporate and/or limited liability
company structures to their clients and prospective
clients. Unfortunately, in many cases this is done
simply to garner a fee from the client. All too often
the recommended structure made no sense for the client's
situation, the structure was put in place and never
properly utilized, or the client never even really knew
how to take advantage of the structure in the first
place.
As a matter of principal we do not
routinely recommend incorporations or LLC's unless it is
without question in your best interests. Our goal is to
retain a client relationship for the long haul, not
obtain a hefty up front fee and turn you loose.
That being said, there are many instances where a
corporate or limited liability company structure is
suitable for the client. For example, if one or more
people pool funds into a single trading account we
always recommend an LLC or LLP. If a highly successful
trader needs to shelter income through retirement
funding, or wishes to pay family members (make your kids
college or allowance tax deductible), or make your
health insurance fully deductible, we also recommend a
separate business structure. Perhaps, you work full or
part time, and basically trade on the side, setting up a
separate business structure can help you achieve a "Mark
to Market Election" that would otherwise not be
available to you.
The valid reasons for setting
up a separate legal structure for your trading business
are too numerous to discuss in entirety here, but they
do exist and we are your qualified source to discuss
them. Let's face it, anyone can set up a Company, but do
they provide you with the full knowledge of " Why" and
"How"? Do they couple the actual process of establishing
this company with the tax knowledge and planning to make
it work for you? There's only one company that I know of
that does that, and that IS US! You will receive
straight answers to straight questions. I can not tell
you how many inquiring phone calls I've received from
perspective clients saying "They heard they should trade
inside of a company, and will we set it up?" They've got
their checkbooks out ready to pay for fees of up to
thousands of dollars. In the majority of the cases, I
tell them they do not need a company, or they do not
need a company right now, to save there money, and we
can revisit the situation as they become more
experienced traders or if circumstances change. That is
who we are, you will receive honest advice at a fair
price. That is my personal guarantee to you. So if you
would like to discuss the benefits of possible
incorporating your trading activities or other business
ventures without the fear of being sold a "bill of
goods" you've come to the right place. We can discuss
your situation in detail and if its not suitable for
you, I'll be the first one to tell you.
Now, all
that being said, there were some major tax law changes
during 2011 that changed the tax landscape quite a bit.
And a separate legal structure may now make more sense
than ever before.
The new tax laws contain
numerous planning opportunities, including reduced taxes
on dividends, reduced capital gain tax rates, increased
business deductions, and increased and accelerated
depreciation deductions! The new tax law provides a
wealth of opportunities to further minimize your tax
bill for 2011 and beyond. But it also contains many
traps that need to be avoided such as:
BROKER BASIS REPORTING TO THEIRS IS SET TO BEGIN
ON ALL STOCK TRADES IN 2012. ESTABLISHING A CORPORATION
AND ELECTING MARK TO MARKET ACCOUNTING TREATMENT WILL
REMOVE ALL OF THIS FROM YOUR 1040. THE IMPORTANCE OF
THIS CAN NOT BE OVERSTATED!
Therefore the structure
of your trading activities, will be of paramount
importance during 2012 and beyond. A consultation with
our firm will not only assist you to minimize tax
liabilities within your trading activity or business,
but also with any other type of business venture you may
have as well. Although we have a very large number or
"trader clients" and specialize in this area, we are
also a full service CPA firm offering a wide range of
services to a very broad spectrum of businesses in a
variety of industries.
We can form a corporation
or limited liability company in any of the fifty states
for a fee of $450 plus state filing fees. You will be
charged a $450.00 retainer fee upon completion of this
transaction. To proceed:
Information you will need to
have ready:
|
