topic Should I create LLC or S corp for stock investment in Investors & landlords

Should I create LLC or S corp for stock investment

stech — Fri, 05 Mar 2021 16:29:44 GMT

I buy stocks and sell stocks short & long terms. (most short terms).

Should I create LLC or S corp? Will I get 1099-MISC from my broker?

which form will save me more money. I do plan to pay myself salary (if its a good year in 2021)

Re: Should I create LLC or S corp for stock investment

SweetieJean — Fri, 05 Mar 2021 18:07:04 GMT

Try reading up on your options. There's lots of good information out there on the internet. Also consider any general legal and state implications. But keep in mind that the tax law can (and does) change.

Re: Should I create LLC or S corp for stock investment

stech — Wed, 10 Mar 2021 00:29:49 GMT

I know, my state allows S Corp.

what I am asking, if I should create LLC (income & expenses) whereas, S Corp I have to pay my salary. I expect to make $35K from stocks this year.

Is it worth the hassle to go for S Corp? Do I save more money from S corp? I read on internet that S Corp saves alot of money. I need to know, if Stock investing would be good for S Corp.

Re: Should I create LLC or S corp for stock investment

SweetieJean — Wed, 10 Mar 2021 00:36:39 GMT

Please see this:

S Corporations | Internal Revenue Service (irs.gov)

But you may wish to read up on LLC's and stock investing first. Long term capital gains are generally taxed at a lower rate than ordinary income. Or consult a local professional first.

Re: Should I create LLC or S corp for stock investment

SweetieJean — Wed, 10 Mar 2021 00:37:41 GMT

A 1099-B is issued for stock sales, not a 1099-MISC.

Re: Should I create LLC or S corp for stock investment

stech — Wed, 10 Mar 2021 00:57:54 GMT

I’m a day trader. I prefer to use business expenses to reduce tax on short term gains

Re: Should I create LLC or S corp for stock investment

fanfare — Wed, 10 Mar 2021 03:11:37 GMT

the main reason to incorporate is to protect yourself from a lawsuit that could take every penny you have.

Otherwise, buy umbrella insurance.

Re: Should I create LLC or S corp for stock investment

stech — Wed, 10 Mar 2021 15:01:13 GMT

LLC is for protection and S Corp is for protection plus some benefits to pay less taxes