Why Day Traders Should Stick With An S Corp
Day traders who want to reduce their taxes should stick to an S corp business setting. It could save you thousands of dollars every year in taxes. Unlike a Limited Liability Company (LLC), you will be considered self employed if you declare you’re under an S corp. In this setting, the IRS will believe that you are merely receiving salary and not profit. With this, taxes for day traders can go down to as much as 15% which is definitely lower than regular taxes. To bring down further the taxes, you can make it look like your wife and family members are receiving salary for work even if they’re not.