Hello, I'm 24 yrs old, I have a full time job in sales which I get
comission on. I also do a lot of stock trading around 100 trades (50
stocks) a year. What I want to do is start an S-corporation for two
reason. One is I want to have security in the event I get sued for say
getting into a car accident, whoever is suing me will not be able to
get my retirement money because its in a corporation. The second
reason, I want to do this is because I'm going to have to pay over
$8,000 probably more in Capital Gains taxes. I want to have a separate
account so that I can buy a new computer or monitor, cable bill, and
other expenses and have full write-off from the gains. Ideally I would
even like to setup another S-corporation for other ventures, which I
could put my car in for further protection. What I would like to know
is can I do this, legally? How can I do it? About how much will it
cost? By setting up this year can I include my capital gains this year
as part of the gains for the new S-Corporation? |
Clarification of Question by
greenwald908-ga
on
31 Oct 2004 08:51 PST
I live in Connecticut and would like to know the best place to setup a S-corporation
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Request for Question Clarification by
pafalafa-ga
on
31 Oct 2004 09:01 PST
Hello greenwald908-ga,
I, too, have an income stream that is independent of my day job
(stocks, when I'm lucky, but mostly my Google Answers work), and have
been faced with questions of how to best manage this from the point of
view of taxes, liability, etc.
Though I am certainly not an expert (see disclaimer at the bottom of
this page!), I'm not sure you're headed in the right direction:
--if you somehow put your retirement account into a corporation, then
the account becomes a corporate asset, and can be tapped by creditors
in the event of a lawsuit, bankruptcy, etc. People generally
establish corporations for precisely the opposite reason -- to keep
their personal assets (like a retirment account) distinct from
corporate assets.
--As for tax write-offs for equipment, home-office space, etc used for
business purposes, you don't need to establish an S-corporation to
take advantage of this. In fact, just adopting a business name is a
first step toward taking advantage of business write-off
opportunities.
You might be better off checking into some ABC's of home business
operations, particularly from a tax and liability point of view.
If you'd like, I can point you to -- and summarize -- some good
resources on this.
Would that work as an answer to your question? Let me know.
pafalafa-ga
|
Clarification of Question by
greenwald908-ga
on
31 Oct 2004 11:46 PST
Thanks for the help. I guess I should consult a tax-planner. Is there
anyway I can downgrade this question so I do not have to pay $100?
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Request for Question Clarification by
pafalafa-ga
on
31 Oct 2004 11:58 PST
Nope. You have to pay up! Ha, ha.
Not really. You're not charged for the question (other than a 50
cents listing fee) unless it has been answered, which it hasn't.
If you'd still like this question answered, then leave it posted, and
provide us some additional guidance as to what sort of information
you'd like...you can adjust the price for the question as you deem
appropriate.
If you no longer want an answer, just cancel the question
entirely...again, you'll only be charged 50 cents for the initial
listing.
Best of luck, financially and otherwise,
pafalafa-ga
|
