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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 to 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 2007 that changed the tax landscape quite
a bit. And a separate legal structure may now make more
sense than ever before. During the year Congress passed,
and President Bush signed into law, "Jobs and Growth
Tax Relief Reconciliation Act of 2005" (JGTRRA).
"JGTRRA" contains 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 2007 and beyond. But
it also contains many traps that need to be avoided such
as AMT tax and Investment Interest vs. Dividend Capital
Gain Rate limitation, just to name a few! And being able
to take advantage of Many of the provisions in the tax
law require that a business be in place. In other words
many of the changes contained were not so much for
individuals but for businesses.
Therefore the structure of your trading activities, will
be of paramount importance during 2008 and beyond, but
hurry because many of these beneficial provisions are
scheduled to expire at the end of the year. 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 $475 plus state
filing fees. You will be charged a $475.00 retainer fee
upon completion of this transaction. To proceed:
Information you will need to have ready:
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