What are the benefits of owning and operating a US LLC if all of your income is personal? (Investments)

[OCT2023]

What are the benefits of owning and operating a US LLC if all of your income is personal?

Primarily Investments: Forex, Futures, Digital Binaries, etc.

 

[Shories]

Mainly you can write off more expenses and you can distribute only necessary profits (i.e., if you have $100k, you can send $40k to yourself and pay only personal income on the $40k).

 

[uplana]

Don't it depends on where you live. Usually in Europe at least you will be taxed from any income in this company unless you can show substance which gets more difficult to do every day.

 

[OCT2023]

Mainly you can write off more expenses and you can distribute only necessary profits (i.e., if you have $100k, you can send $40k to yourself and pay only personal income on the $40k).

So, you can accumulate wealth inside of the LLC until such time as for instance: you can declare Tax Residency in a Territorial Tax country.

Do you have the option of not paying yourself personal income? Or is it best to always pay something?

 

[Shories]

So, you can accumulate wealth inside of the LLC until such time as for instance: you can declare Tax Residency in a Territorial Tax country.

Do you have the option of not paying yourself personal income? Or is it best to always pay something?

There is a certain period when you can hold the funds, but at some point you need to distribute them, i.e., invest or pay dividends.

 

[OCT2023]

There is a certain period when you can hold the funds, but at some point you need to distribute them, i.e., invest or pay dividends.

Like keeping the funds in a brokerage account tied to the US LLC?

 

[Shories]

Like keeping the funds in a brokerage account tied to the US LLC?

Depends on the state the company is incorporated. Yes you can hold them in a brokerage account, but you need to have them invested, not just USD sitting there. So you need to have unrealized gains sitting in your brokerage account

 

[OCT2023]

Depends on the state the company is incorporated. Yes you can hold them in a brokerage account, but you need to have them invested, not just USD sitting there. So you need to have unrealized gains sitting in your brokerage account

ahh yes, was thinking Wyoming, or Delaware