Hello,
I need ideas on how to set up my business to be the most tax advantageous.
I currently am a short term stock trader in my spare time with my own money. Im fairly good at it and make roughly 25-35% annual return pre taxes. I am looking to turn this into a full time business. In order to raise more capital ( I currently only have 80k.) and gain some tax benefits. I think setting it up a corporation would be helpful, if not for taxes, then for raising capital.
Ultimately my stock system will only work with a maximum capital of 400k. So right now, I was planning on forming 4 C-corporations each holding up to 100k capital each to keep the tax rates on my profits under the 15% mark. Also keep in mind I have a 5% flat state cooperate tax, but no state personal income tax.
Long term, I would like the profits that exceed our 100k limit to roll into a local nonprofit and another corporation that I would like to set up to make loans.
I’m not sure if my setup is the best idea, so I’m looking for out of the box ideas or any input.
I don’t really need to take a paycheck from this business, I would like to just let it keep building until retirement.
Thanks in advance