Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
How are you today?
Yes, either way LLC or general partnership you're taxed the same
An LLC is taxed like a partnership
However, your gains and losses will retain the same character as if you made the profits yourself - so, sale of stocks would be capital gains or losses, etc
That is correct
No, the filing and reporting of the LLC is not as strict as the accounting of a corporation.
From a tax perspective, there's no advantage or disadvantage of choosing LLC
It's more of a legal difference. You have liability protection with an LLC...general partners have unlimited liability for the debts and obligations of the partnership. With the LLC only the LLC is liable
so theoretically you could walk away from debts to the LLC and as long as you didn't personally guarantee any debt, not be impacted.
There is no general partner of an LLC
Stock trading is capital, and import trading would be ordinary so the losses of the stock trades would only reduce the import trading income by up to $3,000 per year
Everything is taxed the same way as it would be for an individual
It's still capital. Ordinary loss reduces income, though - so your capital gains will be lower
it's when you have capital losses that your losses are limited
You can open it yourself, although I always suggest using a lawyer to make sure everything is correct. But, you could also use a service like LegalZoom.
Is there anything else I can assist you with tonight?>
If not, please rate my response as "excellent" so that I may receive credit for assisting you today
Thanks so much!
Thanks, XXXXX XXXXX your positive rating. Please come back and visit me for any of your tax, finance, or social security needs. It was a pleasure working with you today. ThanksMegan