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levr, Tax Advisor
Category: Capital Gains and Losses
Satisfied Customers: 29800
Experience:  Working for a large tax preparation service
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What is the pros and cons filing capital gains from stocks

Customer Question

what is the pros and cons filing capital gains from stocks (long and short term) personally vs. LLC Corporation?
Submitted: 1 year ago.
Category: Capital Gains and Losses
Expert:  levr replied 1 year ago.
We need to be clear - if that is an LLC - and not a corporation.We need to clarify HOW that LLC is classified for income tax purposes?A Limited Liability Company (LLC) is a business structure allowed by state statute.Each state has its own business law.Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC owner s tax return (disregarded entity).
Expert:  levr replied 1 year ago.
So - if that is a single member LLC - all income and deductions must be reported on your individual tax return.If the LLC with several members - it is classified as a partnership.However - if you specifically elected your LLC to be taxed as a corporation - in this case the situation might be different.So - I assume - that is a single member LLC - no election was made it to be taxed as a corporation - so it is disregarded entity for income tax purposes - disregarded means ignored - and all income is simply reported on owner;s individual tax return as if there were no LLC - in this case - there will be NO difference for tax calculations..I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you with all tax related issues.