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 principle, 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 lose.
That being said, there are many instances where a corporate or limited liability company structure is suitable for the client. 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. Many times we advise clients to wait until they need a company before setting up a complex structure. 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 possibly 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 it’s 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 2018 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 2018 and beyond. But it also contains many traps that need to be avoided such as:
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 2018 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. 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.
How We Can Help You
We can form a corporation or limited liability company in any of the fifty states for a fee of $500.00 plus state filing fees. You will be charged a $500.00 retainer fee upon completion of this transaction.
To proceed, the information you will need to have ready:
Name of Corporation:
Desired State of Incorporation
We will review your personal tax return and trading situation, your goals, and devise a trading structure that will fit your needs. This service includes up to 1 hour of our time to personally consult with you concerning the operation of your new trading entity. It is all inclusive of your Federal I.D. No., stock certificates, organizational minutes, and Subchapter S election, if applicable.
For additional questions, please contact our office. We look forward to hearing from you.
Call us today!
Local: (303) 465-2585 | Toll Free: (888) 465-2585.