As long as it's available, yes. But I would use a different name just to make them easier to manage. Don't want documents or information swapped, you know? Just a suggestion.
Question: Thank you so much for the Video - very informative. One question: 1) How to deduct expenses from trading such as computers, education, etc? The LLC will have carry those expenses? The trading income minus the expenses will flow to my 1040? is that so? 2) Are there any Transfer Taxes or other taxes of some sort when you roll your personal trading account to the PPT? ( what if its just cash in your Trading account - as a day trader you dont hold any stock position over night) Thanks
One important question though. How are short term capital gains are taxed ? Would they be taxed at Corporate tax rate of 20% or personal short term gains rate ? Thanks
quick comment, you mentioned if you form the LLC with a spouse, it would be a partnership.....spouses are still considered as one for tax purposes, so no partnership return form 1065 is filed you still file under schedule C in your 1040 as a disregarded entity
Spouses can elect partnership tax treatment for their entity. If spouses hold an interest in an LLC the default tax election is partnership. If the spouses reside in a community property state the spouses may elect out of the default partnership status and instead choose disregarded.
What if I have some stocks in operational business LLC and would like to move them to separate LLC? Can I ask a broker to do this directly and then write it in books as distribution/contribution?
Most places allow you to journal over positions. Best for the trading llc to be a subsidiary and document the transfer as an IRS section 351 contribution, do your research on the rules
Two important addditions. A Trust with the same beneficiary and Trustee is a merged trust. You can make yourself the beneficiary and you can also be one of the beneficiaries and have a second beneficiary with 1 percent interest in the trust. That way it's not a merged trust. the other addition - you mention that the trust structure doesn't provide asset protection. It should be a separate entitty and thus not attachable.
I opened and LLC for Day Trading and have a structure set up. I was going to open a business "organization account" with Charles Schwab but to do so they want and minimum 250k to open. I wanted to start a biz day trading account with 50k? Is there another brokerage that I can do this on? Like Robinhood, Merrill or which ones do this? Or am I do this wrong? Thank you for your thoughts. Brandon
If someone who has a CS or Fidelity personal account wants to open the business and they offer to connect the accounts so you can still view the personal and business all together, is this advisable? Or create the LLC brokerage without login capabilities?
I opened an LLC to day trade but not able to find a bank to link it to my LLC. Most banks don’t support day trading as a business. Do you have any recommendations for banks that will give you a business bank account for your day trading LLC ? Also, do you have any recommendations for pro trading accounts? I tried to open an account with Charles Schwab but they have a minimum of $250 K
Hey. So I am a day trader with llc taxed as s corp. business account in fidelity. I was able to check Amex business checking account since I have Amex card. The only other bank that I was able to open an account in was Bluevine. But I reworded a bit in terms of what I do. Business will be investing in real estate stocks bonds and other similar investment products. Worked 😀
In this scenario we will set up a trust to hold the trading account and place the trust in a LLC. This is a workaround for the exchange fee on business accounts under 250k.
And... would it be advisable to have any checking accts/banking accts that transfer $$$ to be based in Delaware ...for added charging protection against the LLC etc😲?
If you are from a different state aren't you supposed to pay your own state some tax because of your LLC in Wyoming? If yes, wouldn't everyone figure out you have an LLC in Wyoming that they can go after?
Thank you for the informative content. Will I be personally taxed on the gain when transferring my existing personal Schwab account to the LLC account?
Hi Clint, do i have to set up an WY LLC for the asset protection or any state LLC will offering the same protection? How is the cost to keep the WY llc in good standing each year? Thanks
Wyoming offers superior asset protection from outside creditors I.e., your personal creditors. To keep the LLC in good standing we offer this service to our clients. If you would like a FREE 30-minute consultation, you can request one here - aba.link/clintss or you can send me an email at ccoons@andersonadvisors.com, and I will have someone contact you.
If I reside in CA arent we reuqire to also have an llc in CA sonce thays where we are trading from? Thats what Chase bank told me. Also how do you avoid the broker professional fees when you're tradong as an entity. I was yold yhey automatically categorize your account as a professional and your data fees all triple?? Os there a way around that?
You do not need a CA LLC for trading. To avoid the fees you must set up the account under a personal property trust and have that owned by your trading LLC or keep a personal account for the real time feeds.
Yes If you would like a FREE 30-minute consultation, you can request one here - aba.link/clintss or you can send me an email at ccoons@andersonadvisors.com, and I will have someone contact you.
WAYYYY TOO much work for wanting real time data… Simply sign up with another broker that has free data… You can transfer your positions too without selling anything..
Would you like to learn more about day trading inside an LLC? Schedule a free consultation here: aba.link/5dw
Thank you this was very informative. Been looking for something like this.
Hi, if my LLC is already registered with my state, can I still create Wyoming LLC with same name from my state?
As long as it's available, yes. But I would use a different name just to make them easier to manage. Don't want documents or information swapped, you know? Just a suggestion.
Informative, thanks!
Question: Thank you so much for the Video - very informative. One question:
1) How to deduct expenses from trading such as computers, education, etc? The LLC will have carry those expenses? The trading income minus the expenses will flow to my 1040? is that so?
2) Are there any Transfer Taxes or other taxes of some sort when you roll your personal trading account to the PPT? ( what if its just cash in your Trading account - as a day trader you dont hold any stock position over night)
Thanks
The LLC pays a management fee and income split with the corporation. The corporation is the entity where you take the expense.
I believe you can Request the Physical Stock Certificates you hold shares in, then bring them to the new Brokerage house.
One important question though. How are short term capital gains are taxed ? Would they be taxed at Corporate tax rate of 20% or personal short term gains rate ? Thanks
STCG only apply to individuals not C-Corporations. The tax rate is your personal income tax rate.
We move into LLC both individual accounts and IRA accounts? or just Individual ones? Thanks.
To get the best answer tailored to your specific circumstances, I recommend scheduling a free consultation with my team. Visit: aba.link/5dw
quick comment, you mentioned if you form the LLC with a spouse, it would be a partnership.....spouses are still considered as one for tax purposes, so no partnership return form 1065 is filed you still file under schedule C in your 1040 as a disregarded entity
Spouses can elect partnership tax treatment for their entity. If spouses hold an interest in an LLC the default tax election is partnership. If the spouses reside in a community property state the spouses may elect out of the default partnership status and instead choose disregarded.
What if I have some stocks in operational business LLC and would like to move them to separate LLC? Can I ask a broker to do this directly and then write it in books as distribution/contribution?
Most places allow you to journal over positions. Best for the trading llc to be a subsidiary and document the transfer as an IRS section 351 contribution, do your research on the rules
@jehuhand8176 has the gist of how to do what you asked
Two important addditions. A Trust with the same beneficiary and Trustee is a merged trust. You can make yourself the beneficiary and you can also be one of the beneficiaries and have a second beneficiary with 1 percent interest in the trust. That way it's not a merged trust. the other addition - you mention that the trust structure doesn't provide asset protection. It should be a separate entitty and thus not attachable.
Hello Clint, could you please make a video on creating trading business as well? Thanks
I'll definitely consider it for future content
ruclips.net/video/nCAcdYJ9efU/видео.html He already made this one, I think.
I opened and LLC for Day Trading and have a structure set up. I was going to open a business "organization account" with Charles Schwab but to do so they want and minimum 250k to open. I wanted to start a biz day trading account with 50k? Is there another brokerage that I can do this on? Like Robinhood, Merrill or which ones do this? Or am I do this wrong? Thank you for your thoughts. Brandon
We will typically set up a trust to hold the account and place the trust into the LLC. The trust is not subject to the 250k requirement.
Good stuff, thanks
You bet
Do i need to create an operating agreement for brokerage account?
Yes you do
If someone who has a CS or Fidelity personal account wants to open the business and they offer to connect the accounts so you can still view the personal and business all together, is this advisable? Or create the LLC brokerage without login capabilities?
Did you do the video for a trading business? I don’t see it
I opened an LLC to day trade but not able to find a bank to link it to my LLC. Most banks don’t support day trading as a business. Do you have any recommendations for banks that will give you a business bank account for your day trading LLC ?
Also, do you have any recommendations for pro trading accounts? I tried to open an account with Charles Schwab but they have a minimum of $250 K
Hey. So I am a day trader with llc taxed as s corp. business account in fidelity. I was able to check Amex business checking account since I have Amex card. The only other bank that I was able to open an account in was Bluevine. But I reworded a bit in terms of what I do. Business will be investing in real estate stocks bonds and other similar investment products. Worked 😀
In this scenario we will set up a trust to hold the trading account and place the trust in a LLC. This is a workaround for the exchange fee on business accounts under 250k.
Interactive Broker has a Very Small requirement to open a business account.
curious what does the taxes for such a setup will look like?
Probate still avoided with beneficiary interest being in a LLC?
You need to place your LLC in a living trust to avoid probate.
Under this structure can the LLC charge a management fee for overseeing the PPT? Also, can the LLC also engage in other asset management activities?
Correct
And... would it be advisable to have any checking accts/banking accts that transfer $$$ to
be based in Delaware ...for added charging protection against the LLC etc😲?
If you are from a different state aren't you supposed to pay your own state some tax because of your LLC in Wyoming? If yes, wouldn't everyone figure out you have an LLC in Wyoming that they can go after?
No because your tax returns are not public.
Thank you for the informative content. Will I be personally taxed on the gain when transferring my existing personal Schwab account to the LLC account?
I would recommend setting up a free consultation to talk about some strategies and how they apply to your unique situation. Sign up here: aba.link/5dw
Hi Clint, do i have to set up an WY LLC for the asset protection or any state LLC will offering the same protection? How is the cost to keep the WY llc in good standing each year?
Thanks
Wyoming offers superior asset protection from outside creditors I.e., your personal creditors. To keep the LLC in good standing we offer this service to our clients. If you would like a FREE 30-minute consultation, you can request one here
- aba.link/clintss or you can send me an email at ccoons@andersonadvisors.com, and I will have someone contact you.
Is it the same when you are a non resident alien with a wy llc?
Generally no. Typically only an LLC will be used for holding US equities.
🔥🔥🔥
If a foreigner outside USA and have an LLC in USA then can he open an LLC account in Charles Schwab?
Yes
@ thanks for your reply.
Hi I have a Trading LLC but my NAICS code are not correct. For option tradings, which one is it? Thank you.
The codes do not have any impact on your business.
So if we setup in WY, would we have to register as a foreign entity in the state we reside in??
I would recommend setting up a free consultation to talk about some strategies and how they apply to your unique situation. Sign up here: aba.link/5dw
Do you have any videos on non revocable charity trust to save on trading taxes?
I do not
@@ClintCoons do you recommend them?
Will this structure work for precious metals as well?
Yes
how abut if you have multiple brokerage accounts like fidelity robinhood vanguard etc
You can use the same LLC.
If I reside in CA arent we reuqire to also have an llc in CA sonce thays where we are trading from? Thats what Chase bank told me.
Also how do you avoid the broker professional fees when you're tradong as an entity. I was yold yhey automatically categorize your account as a professional and your data fees all triple?? Os there a way around that?
You do not need a CA LLC for trading. To avoid the fees you must set up the account under a personal property trust and have that owned by your trading LLC or keep a personal account for the real time feeds.
I currently have a margin account at Etrade . Can an LLC have a margin account?
Yes
Can beginners as first day of day trading sign up for LLC?
Yes If you would like a FREE 30-minute consultation, you can request one here
- aba.link/clintss or you can send me an email at ccoons@andersonadvisors.com, and I will have someone contact you.
What LLC is best for tax savings, S?
I recommend registering for a complimentary consultation with my team. We'll tailor our advice to your specific needs. Sign up here: aba.link/5dw
Does this strategy also work for full time crypto traders? Thanks in Advance!!
yes
Can I as foreigner owned trade LLC ?
Yes you can set up an LLC.
WAYYYY TOO much work for wanting real time data… Simply sign up with another broker that has free data… You can transfer your positions too without selling anything..
What meant by free data
By example:???
@@mackjewell8990 did you watch the video?
@@AIRfree I gave you the answer…. Go do some research… Stop being spoon fed
Set up a TradingView acct for ur data and market analysis.
you lost me.