Signing Up with an FMO As an Individual or in My Company Name

[senior-advisor-indiana]

I have no idea one way or the other. I will ask my guy about it the net time I talk to him about my taxes.

 

[arnguy]

Arnguy, if I remember right you are actually a former IRS employee. What do you think about the S corp?

Yes, SAI, I am a former IRS agent. I was involved mainly in compliance and enforcement endh. With regard to Subchapter S, it all depends. If you have a successful business I believe it does not make sense to go the Sub S route inasmuch the current marginal corporate tax rate is 35% while on the other hand the highest marginal individual tax rate is 45%. It doesn't make sense to pass through the income to the higher individual tax rate. Years ago, it was a no brainer to opt for Sub S when the marginal corporate tax rate was much higher.

I feel we should all apologize to elder for waisting ([sic] his time. Maybe he should tighten his belt a notch or two to reduce his waist! I agree with Todd that elder is spewing a lot of B S.

My best advice is to hire a competent CPA and have him/her analyze your situation in order to make an intelligent decision. BTW there is always the option of LLC in many states which gives the pass through benefit while limiting exposure.


I feel we should all apologize to elder for waisting ([sic] his time. Maybe he should tighten his belt a notch or two to reduce his waist! I agree with Todd that elder is spewing a lot of BS.

The large brokers elder is referring to probably are "C" corporations in most cases.

 

[elder]

My best advice is to hire a competent CPA and have him/her analyze your situation in order to make an intelligent decision. BTW there is always the option of LLC in many states which gives the pass through benefit while limiting exposure.


Smartest thing you have said in this entire thread, why didn't you say that in the beginning?