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Updated almost 6 years ago on . Most recent reply
Opening trading account. Business? Or personal?
I have my LLC for flipping homes but I’m going to start trading stocks… Should I keep that in my personal name or should I have a LLC for that and then create a holding company that holds my real estate LLC and trading LLC and pay myself from the holding company? Will this benefit me better for tax purposes?
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Eamonn McElroy
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#5 Tax, SDIRAs & Cost Segregation Contributor
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Eamonn McElroy#5 Tax, SDIRAs & Cost Segregation Contributor
#5 Tax, SDIRAs & Cost Segregation Contributor
- Accountant
- Atlanta, GA
"Will this benefit me better for tax purposes?"
No.
If you are the sole owner of the holding LLC, and the holding LLC is the sole owner of the real estate LLC and trading LLC, there is zero tax difference between a brokerage in your name vs this structure. (assuming a corporate tax election has not been made)
Except now you have costs to maintain this structure.
Single member LLCs are generally for legal liability protection, not tax savings.