The document discusses the tax, asset protection, and estate planning implications of trader status versus operating as a business entity. While trader status provides some tax benefits, it offers no asset protection or estate planning advantages. Additionally, it is difficult to qualify for trader status. Instead, the document recommends setting up a limited partnership or LLC as a trading vehicle, with a small corporation as manager. This structure provides tax benefits, as well as strong asset protection and effective estate planning. It avoids the need to qualify for trader status.
Goodwill is the difference between the value of a business enterprise as a whole and the sum of the current fair values of its identifiable tangible and intangible net assets. Net assets are the assets that are left after subtracting the company’s liabilities. Goodwill is only recorded when its amount is substantiated by an arm’s-length transaction. Goodwill cannot be sold or acquired separately but has
to be included in a purchase with the net assets of a business enterprise
WHYNOTtsxBUBBY
8:50pm 07may2016
More contented mooing brings large crop of Newbies.
StockTakers WHYNOTtsxBUBBYTM gives small investors means to grow their wealth with our Risk Price driven 'likeables'.
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Because You Can.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
More contented mooing from large crop of Newbies.
StockTakers UUOOPPsiesTM gives small investors means to grow their wealth with our Risk Price driven 'likeables'.
Enjoy another slice of our Risk Price method to earn investment income for yourselves.
Because You Can.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
Very contented mooing from those TSX Newbies - 8.24% in 3 months.
StockTakers WHYNOTtsxBUBBYTM gives small investors means to grow their wealth with our Risk Price driven 'likeables'.
Enjoy another slice of our Risk Price method to earn investment income for yourselves.
Because You Can.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
Light lowing from the herd this month for 15-20% pa.
StockTakers BlackSwanTrading-Solo 50K TM allows small investors to grow their own wealth with our Risk Price driven 'likeables'.
Enjoy another slice of our Risk Price method to earn investment income for yourselves with our 'likeables'.
Because You Can.
Accredited Investors Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
Goodwill is the difference between the value of a business enterprise as a whole and the sum of the current fair values of its identifiable tangible and intangible net assets. Net assets are the assets that are left after subtracting the company’s liabilities. Goodwill is only recorded when its amount is substantiated by an arm’s-length transaction. Goodwill cannot be sold or acquired separately but has
to be included in a purchase with the net assets of a business enterprise
WHYNOTtsxBUBBY
8:50pm 07may2016
More contented mooing brings large crop of Newbies.
StockTakers WHYNOTtsxBUBBYTM gives small investors means to grow their wealth with our Risk Price driven 'likeables'.
Enjoy another slice of our Risk Price method to earn investment income for yourselves.
Because You Can.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
More contented mooing from large crop of Newbies.
StockTakers UUOOPPsiesTM gives small investors means to grow their wealth with our Risk Price driven 'likeables'.
Enjoy another slice of our Risk Price method to earn investment income for yourselves.
Because You Can.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
Very contented mooing from those TSX Newbies - 8.24% in 3 months.
StockTakers WHYNOTtsxBUBBYTM gives small investors means to grow their wealth with our Risk Price driven 'likeables'.
Enjoy another slice of our Risk Price method to earn investment income for yourselves.
Because You Can.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
Light lowing from the herd this month for 15-20% pa.
StockTakers BlackSwanTrading-Solo 50K TM allows small investors to grow their own wealth with our Risk Price driven 'likeables'.
Enjoy another slice of our Risk Price method to earn investment income for yourselves with our 'likeables'.
Because You Can.
Accredited Investors Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
Louder mooing from the herd brought 5% to 10% in a month.
StockTakers BlackSwanTrading-Solo 50K TM allows small investors to grow their own wealth with our Risk Price driven 'likeables'.
Enjoy another slice of our Risk Price method to earn investment income for yourselves with our 'likeables.
Because You Can.
Accredited Investors Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
Lively mooing from the herd this month for 17-21% pa.
StockTakers BlackSwanTrading-Solo 50K TM allows small investors to grow their own wealth with our Risk Price driven 'likeables'.
Enjoy another slice of our Risk Price method to earn investment income for yourselves with our 'likeables'.
Because You Can.
Accredited Investors Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
In rough negative marketsfor near half its term BlackSwan is honking 20.50% pa. That is proof,
StockTakers gives small investors means to save tax refunds with our Risk Price method. Enjoy another slice to earn investment income for yourselves.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income for them and leave that work to us.
Because We Can.
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StockTakers TaxCharityTM lets small investors grow their wealth with our Risk Price driven 'likeables'. .
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Because You Can.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
Contented mooing 9.12% from those Newbies.
StockTakers UUOOPPsiesTM gives small investors means to grow their wealth with our Risk Price driven 'likeables'.
Enjoy another slice of our Risk Price method to earn investment income for yourselves.
Because You Can.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
Mooing slowly @ 15.87% pa.
StockTakers TaxCharityTM lets small investors grow their wealth with our Risk Price driven 'likeables'. .
Enjoy another slice of our Risk Price method to earn self-directed investment income for yourselves.
Because You Can.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
StockTakers Black Swans are honking nicely giving small investors means to build their wealth with our proprietary Risk Price method
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Enjoy another slice to earn investment income for yourselves. Because You Can..
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income for them leaving that work to us.
Because We Do.
Mooing slowly @ 3.63 to 14.56% pa.
StockTakers TaxCharityTM lets small investors grow their wealth with our Risk Price driven 'likeables'. .
Enjoy another slice of our Risk Price method to earn self-directed investment income for yourselves.
Because You Can.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
Mooing slowly @ 18.96% pa.
StockTakers TaxCharityTM lets small investors grow their wealth with our Risk Price driven 'likeables'. .
Enjoy another slice of our Risk Price method to earn self-directed investment income for yourselves.
Because You Can.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
Mooing slowly @ 4.55 to 17.09% pa.
StockTakers TaxCharityTM lets small investors grow their wealth with our Risk Price driven 'likeables'. .
Enjoy another slice of our Risk Price method to earn self-directed investment income for yourselves.
Because You Can.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
Intangible assets are defined as those non-monetary assets of a company that cannot be seen, touched or physically measured, whereas with a tangible asset you can “stub your toe” on it
Retirement Income: Which Accounts to Tap First?Forman Bay LLC
Many clients assume that when retirement rolls around, they should draw cash from their taxable accounts first. Generally, this is a good idea—
but not always.
StockTakers EuroSocial TaxCharit€TM gives our small investor cousins means to build their wealth with our proprietary Risk Price method
StockTakers TaxCharityTM gives small investors means to save tax refunds with our proprietary Risk Price method.
Enjoy another slice to earn investment income for yourselves. Because You Can.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income for them leaving that work to us.
Because We Do.
Louder mooing from the herd brought 5% to 10% in a month.
StockTakers BlackSwanTrading-Solo 50K TM allows small investors to grow their own wealth with our Risk Price driven 'likeables'.
Enjoy another slice of our Risk Price method to earn investment income for yourselves with our 'likeables.
Because You Can.
Accredited Investors Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
Lively mooing from the herd this month for 17-21% pa.
StockTakers BlackSwanTrading-Solo 50K TM allows small investors to grow their own wealth with our Risk Price driven 'likeables'.
Enjoy another slice of our Risk Price method to earn investment income for yourselves with our 'likeables'.
Because You Can.
Accredited Investors Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
In rough negative marketsfor near half its term BlackSwan is honking 20.50% pa. That is proof,
StockTakers gives small investors means to save tax refunds with our Risk Price method. Enjoy another slice to earn investment income for yourselves.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income for them and leave that work to us.
Because We Can.
Mooing slowly @ 15.21% pa.
StockTakers TaxCharityTM lets small investors grow their wealth with our Risk Price driven 'likeables'. .
Enjoy another slice of our Risk Price method to earn self-directed investment income for yourselves.
Because You Can.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
Contented mooing 9.12% from those Newbies.
StockTakers UUOOPPsiesTM gives small investors means to grow their wealth with our Risk Price driven 'likeables'.
Enjoy another slice of our Risk Price method to earn investment income for yourselves.
Because You Can.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
Mooing slowly @ 15.87% pa.
StockTakers TaxCharityTM lets small investors grow their wealth with our Risk Price driven 'likeables'. .
Enjoy another slice of our Risk Price method to earn self-directed investment income for yourselves.
Because You Can.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
StockTakers Black Swans are honking nicely giving small investors means to build their wealth with our proprietary Risk Price method
StockTakers TaxCharityTM gives small investors means to save tax refunds with our proprietary Risk Price method.
Enjoy another slice to earn investment income for yourselves. Because You Can..
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income for them leaving that work to us.
Because We Do.
Mooing slowly @ 3.63 to 14.56% pa.
StockTakers TaxCharityTM lets small investors grow their wealth with our Risk Price driven 'likeables'. .
Enjoy another slice of our Risk Price method to earn self-directed investment income for yourselves.
Because You Can.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
Mooing slowly @ 18.96% pa.
StockTakers TaxCharityTM lets small investors grow their wealth with our Risk Price driven 'likeables'. .
Enjoy another slice of our Risk Price method to earn self-directed investment income for yourselves.
Because You Can.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
Mooing slowly @ 4.55 to 17.09% pa.
StockTakers TaxCharityTM lets small investors grow their wealth with our Risk Price driven 'likeables'. .
Enjoy another slice of our Risk Price method to earn self-directed investment income for yourselves.
Because You Can.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
Intangible assets are defined as those non-monetary assets of a company that cannot be seen, touched or physically measured, whereas with a tangible asset you can “stub your toe” on it
Retirement Income: Which Accounts to Tap First?Forman Bay LLC
Many clients assume that when retirement rolls around, they should draw cash from their taxable accounts first. Generally, this is a good idea—
but not always.
StockTakers EuroSocial TaxCharit€TM gives our small investor cousins means to build their wealth with our proprietary Risk Price method
StockTakers TaxCharityTM gives small investors means to save tax refunds with our proprietary Risk Price method.
Enjoy another slice to earn investment income for yourselves. Because You Can.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income for them leaving that work to us.
Because We Do.
The authors explain how a Business Legal Checkup ("BLC") can be useful. BLC is a diagnostic tool small and medium size businesses can use to verify if legal aspects of their operation comply with law and to minimize risk, litigation and expense. When the BLC is completed, the business owner receives a lawyer’s report red-flagging matters which need correction, improvement or further legal advice. Contact the authors for more information.
Tampa tax law can be an incredibly tricky thing, so let the tax lawyer to help you to figure out your strategy. Some law offices have limited hours, but that is simply not the case with Tax Law Tampa. If you’re looking for a decent tax lawyer in Tampa area, we have your back. Give us a call today and find out for yourself. You’ll be glad that you did.
Here's my "Artist's Guide To Owning & Operating a Business." It's for creative entrepreneurs that want to help get their business up and running quickly. Contact my office to supercharge the findings in my report!
Fund Raising, an art, not mastered by all the founders. About 90% of the startup fails to convert their business plan into investor consent. What are the steps followed by remaining 10% who succeed in closing the deal? What are the “Does & Don’t’” to be followed by a Startup- to raise fund from investors? What are the measures/precautions to be followed by startup to be picked by investors? Many a times, investor may agree preliminary, however, at a later stage they refused to move ahead, even the additional concessions offered do not motivate the investors. There are several questions which a founder had to face but failed to knock the right opportunity.
Key & Common Negotiated Provisions - Part 1 (Series: PRIVATE COMPANY M&A BOOT...Financial Poise
Although every deal is different, understanding any purchase/sale agreement will help you understand other purchase sale agreements. Stated another way, most M&A documents include a similar set of sections and use a similar vocabulary. Episodes 3 and 4 of this series explain specific, common provisions and discuss how buyers and sellers approach these provisions differently, particularly in light of situational differences (e.g. whether the assets being bought and sold are equity of a company or the assets of a company; whether the seller is going to cease to exists or not). Between Episodes 3 and 4, topics covered will include tax issues; corporate governance; closing conditions; representations and warranties; indemnification provisions; earn-outs; restrictive covenants; antitrust; intellectual property; and employment issues.
To view the accompanying webinar, go to: https://www.financialpoise.com/financialpoisewebinars/on_demand_webinars/common-negotiated-provisions-part-1/
Although every deal is different, understanding any purchase/sale agreement will help you understand other purchase sale agreements. Stated another way, most M&A documents include a similar set of sections and use a similar vocabulary. This episode explains specific, common provisions and discusses how buyers and sellers approach these provisions differently, particularly in light of situational differences (e.g. whether the assets being bought and sold are equity of a company or the assets of a company; whether the seller is going to cease to exists or not). Topics covered will include tax issues; corporate governance; closing conditions; representations and warranties; indemnification provisions; earn-outs; restrictive covenants; antitrust; intellectual property; and employment issues.
Part of the webinar series:
M&A BOOT CAMP - 2022
See more at https://www.financialpoise.com/webinars/
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Recruiting in the Digital Age: A Social Media MasterclassLuanWise
In this masterclass, presented at the Global HR Summit on 5th June 2024, Luan Wise explored the essential features of social media platforms that support talent acquisition, including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
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7. Deduct interest and operating expenses as ordinary expenses.However, once you claim the trader status, these benefits may not turn out to be as wonderful as they seem. <br />Electing mark to market accounting has to be done prior to the year you wish to utilize such method. This adds uncertainty because you do not know whether you will benefit from such accounting method at the time you elect it. Further, the election is irrevocable. Once you make the election – you are stuck. <br />You will need a written permission from the IRS in order to elect out of mark to market. This is very inconvenient and ironic especially considering that trading is the kind of activity where lots of flexibility and anticipation are needed.<br />Mark to market accounting gives you the benefit of avoiding the wash sale rule. The wash sale rule is avoided because mark to market requires you to report gains and losses on all securities held at the end of the year, even if you have not sold them. This is actually a major downfall for this accounting method because you could end up paying excessive taxes before you realize any gains on securities. For example, if a security peaks its price at the end of the year, you will have to pay taxes at that peak as if you have realized a gain even though you have not. When you finally sell such security and the price has fallen off, you essentially have paid a higher tax than you would have had to. Do you remember Qualcomm’s end of year run-ups in the late 90’s and early 2000’s. Can you imagine having to pay 20%+ in gains on stock you never sold that is now worth less than the taxes you owe? Why would you willingly put yourself in that situation?<br />The unlimited ordinary loss deduction available to traders is plainly a counter-intuitive idea for claiming trader status. The whole purpose of claiming such status is because you seek to trade securities and conduct such activity as a business, in order to make a profit. It makes no sense for you to claim the status in order to write off the losses. If you know you are going to lose money trading, you might as well not trade in the first place.<br />Further, this benefit can actually never be realized for a single taxpayer who claims trader status. The reason is because the IRS and the courts would not allow someone who has other employment to qualify as a trader. In other words, you would not have any other ordinary income other than the income from trading. However, to claim the loss deduction you would have lost money from trading. Because you have no ordinary income from trading and you are not permitted to have other ordinary income from activities outside of trading, you would not be able to write off the trading losses against anything.<br />Your alternative<br />Considering all three aspects, for a trader, there is a much better solution than claiming trader status with the IRS and trade in your own name. Since you are serious about trading, the best solution is to operate like a business. Operating a business with proper business structures ensures that you are treated as a business by the IRS and receive the maximum tax benefits that a legitimate business should receive. <br />At BOSS, we have done diligent research and carefully devised a structure that best serves this purpose for people trading in the stock market. The purpose of the structure is to maximize asset protection, estate planning and tax benefits in a comprehensive structure. <br />This structure consists of setting up a limited liability entity (such as a limited partnership or LLC) as your trading vehicle. The limited liability entity holds your trading brokerage account. We generally recommend a limited partnership for traders, but it really depends on your individual circumstances. <br />A corporation is then established as a small percentage owner and manager of the limited partnership (or LLC). If you utilize this trading structure, you can be sure that your trading business receives the maximum benefits from all three aspects previous mentioned: asset protection, estate planning, and tax. In addition, you are freed from the worries of qualifying as a trader in the IRS’s eyes.<br />Asset protection<br />One of the benefits of having a proper business structure is that it provides protection for your assets. Rather than owning everything under your name, your trading-related assets are shielded behind the limited partnership or LLC. Should any unfortunate event arise and you are personally sued, you are ensured that your trading activity, which may be your primary source of income, is not jeopardized. <br />Depending on where you file, both limited partnerships and LLCs provide charging order protection. This means that for a creditor to get to the assets inside the entity, said creditor would need to obtain a judgment, get a charging order and then petition the court and seek why that creditor should be allowed to do what no other creditors are allowed to do; namely, pierce the entity and attach the assets. Because the limited partnership or LLC was set up with a legitimate business purposes, this will be next to impossible for the creditor to do. For example, in Nevada, the creditor would have to show fraud or illegal activity to even be considered. <br />Estate Planning<br />Having a proper business structure also is an effective estate planning tool. Owning all of your assets without organization is like holding a mound of sand in your palms. The grains will slip through your fingers if you are not careful, the wind can scatter them, and it is difficult to pass on. Worse yet, it is easy for others to take a scoop from you. This is not an ideal way to handle your assets. <br />Now imagine you take the sand in your palms and pour it into a container and add a lid on top. Now the sand will not scatter in the wind or fall through your fingers. It is much easier to pass on to someone else. It is also much more difficult for others to come and take a scoop because the lid protects the sand. <br />Having a proper business structure is similar to placing the sand in the container. Your assets and businesses are organized and the ownership is consolidated and protected. It is much safer and much more effective tool for your estate planning and can be easily passed on or handed off. <br />Tax<br />The purpose of having the dual entity structure is that each entity serves its purposes and they work harmoniously together as a team. As previously mentioned, the limited partnership or LLC will serve as your trading vehicle and as an effective asset protection tool. The corporation is established to manage your limited partnership or LLC (and others), to engage in any other active business activities, and at the same time, it allows you to utilize the flexible tax deductibility and fringe benefits a corporation enjoys.<br />Under this structure, the limited partnership or LLC will be your primary medium to generate income since it is your trading vehicle. The gains realized from trading can be distributed to the individual partners. That would be you and whoever else you are in business with. The corporation serves as the manager of the limited partnership or LLC and earns a management fee and possibly guaranteed payments (if you so choose). <br />The income from the limited partnership or LLC is taxed only at the individual level, so there is no worry about double taxation treatment for the corporation dividends. There is also no self-employment tax for this income. In addition, since you are no longer concerned with qualifying for the trader status, you may have other sources of income to supplement your livelihood. If you have trading losses from the limited partnership, these losses are passed on to the individual level and can be offset against your other passive income or carried forward.<br />The corporation provides you with the flexibility of various deductions and fringe benefits otherwise not available for an individual taxpayer. One of the biggest is the medical reimbursement, dental and vision plan. These are 100% deductible fringe benefits and it will substantially lower your costs for any medical expenses. In addition, expenses related to your business, such as office equipment, vehicle, software, advice, educational publications, and seminars, etc. are all deductible as business operating expenses for the corporation. These expenses can be carried over the years and offset against the income the corporation receives; namely, the management fees and guaranteed payments. <br />If you find that trading is not for you and you have losses in the corporation when you shut down, so long as a good organization (like BOSS) prepared the documents properly, you will be able to write off the losses against your ordinary income at that time. In other words, you will still ultimately receive the tax benefits of the structure even if it fails. <br />Recommendation<br />While using a structure is not the equivalent of claiming trader status, it is a much more comprehensive and safer structure for an individual who trades. Even though the wash sale rule stays effective with this structure, it can be easily navigated by a careful trader. This structure ensures that you would not have to deal with the burden and uncertainty of complying with the requirements of the trader status. It also avoids the rigidity and risk that accompanies mark to market accounting. <br />The trading structure also provides you with the benefits in asset protection and estate planning, which is otherwise unavailable to individuals merely attempting to claim trader status. <br />In addition, it provides many tax benefits that are not available to individual taxpayers.<br />All in all, this is a much better system for traders in security to run as a business. If you are serious about trading, it is highly recommended that you establish the business structure rather than claiming trader.<br />Would you like to speak to someone about your trading structure? <br />Give BOSS Business Services a call at 888-969-BOSS (2677) and ask for a complimentary review. You may also visit us on the web and request a free consultation with one of our attorneys, tax professionals or planners. <br />Visit www.BossOffice.com for more information.<br />