I hate to disagree but BOSS actually specializes in investors in general, both stock market & real estate. One look at the website would show you that, they offer numerous classes on both subjects.
To: OptionClub@yahoogro
From: nhorowitz@axeus.
Date: Mon, 3 May 2010 15:49:18 -0700
Subject: RE: [TheOptionClub.
From: OptionClub@yahoogro
Sent: Monday, May 03, 2010 12:40 PM
To: OptionClub@yahoogro
Subject: Re: [TheOptionClub.
Thanks Janet for your story....
For all that have been posting to this thread... it is two separate entities -> a C-Corp than is the managing partner in an LLC which is the holder of the trading account.
From what I can tell the reason for this organization is that the "C-Corp" is the mothership which manages other businesses. For example as we all become mega successful in trading we want to diversify into other assets such as real estate. This would not be a part of the trading LLC or C-Corp it would be a new LLC which would again be managed and possibly financed by the C-Corp. This is a way to grow the C-Corp which you are the beneficiary of without risking the assets of the whole organization. That way if you have a bad real estate deal that kills one of your LLCs it will not affect the others. The additional tax benefits that were listed before are only seen if you plan on paying your self a salary, providing your family insurance (because you are trading full time), funding a 401k, etc, etc.
I would suspect that you will need a large asset base to make organizing this way make sense. If you are working a separate full time job, or do not plan on having multiple businesses (real estate, equity trading, bob's car wash) then a simple LLC would be enough asset protection.
I am currently researching this and would like for others to post accountants / Law Firms that they have dealt with for this.. currently I am formulating interview questions for the following: www.greencompany.
Thanks,
Joey
On May 3, 2010 at 8:29 PM janet_earnest <janetearnest@
Back a couple of years ago, when I was a newbie and still very gullible (well at least more gullible than I am now), we went to a seminar for traders concerning asset protection etc. After 2-3 days of presentations, we thought it prudent to form a corporation and LLC to better handle taxes on trading gains. It cost us several thousands of dollars to get all the legal stuff set up. Then I had to figure out all the additional reports etc that had to be created monthly/annually for the C corp and LLC to operate legally. Ok, that was kind of a pain, but worth it if it would provide tax benefits etc. So, about a year later it was time to file the tax returns. So we met with an accounting/tax firm specializing in such things. They informed us that we would probably spend more on taxes using the C corp/LLC structure than just trading as an individual. And guess what, when we got our tax return from them, that proved to be the case. However, I knew better. Armed with all the information that the law firm provided, I just knew something wasn't right. So I spent weeks digging into tax forms trying to figure out how it could be reported differently but still appropriately. Well I'm certainly no tax expert but I couldn't find a different way of reporting. I even did some what if's such as what if I had much better gains - still no better - I'd still pay more taxes than as an individual. So we contacted the law firm that set this up for us. After some rather heated discussion, we were left with three choices -- 1) Use an accounting firm that they recommended that could provide tax forms that would make it profitable 2) Spend more money with them to re-structure our C corp and LLC(remember they are the ones that set it up initially for trading purposes) 3) Close the C corp and LLC. Options 1 and 2 didn't pass the smell test with us so we chose option 3. It was an expensive experience for us which included expenses for setting up the LLC etc, more taxes than otherwise would have been required, payment to the accounting firm to prepare taxes (can now do ourselves), and payment to close down the LLC. There was also a large amount of time and energy spent on this whole process which could have been better spent elsewhere.
So I'd recommend you check it out thoroughly - it might be that it works for you - it evidently works for some.
--- In OptionClub@yahoogro
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> A LLC is essentially a corporation, although some may ‘choose’ to file as a partnership.
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> A corp would file a 1120 or 1120S tax return. A C corp files an 1120 and pays taxes, an S corp files an 1120S and passes through any gains/losses to the shareholder(
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> Any accountant should understand that.
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> Do you mean an LLC taxed as a C corp???
> A tax lawyer recommended this to us, but then spoke to an accountant who had
> no idea what that meant... Puzzled now
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> _____
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> From: john sheldon <johnlsheldon@
> To: optionclub@yahoogro
> Sent: Sat, May 1, 2010 8:35:35 PM
> Subject: RE: [TheOptionClub.
>
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> I trade under an LLC & have a corp that manages the LLC to obtain more tax benefits.
>
> John S
>
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