Q: Creating S Corp for purposes of investing
I would like to become a day trader of stocks and cryptocurrencies and saw S Corps may provide many tax benefits. I live in Florida. Would an S Corp allow me to pay less taxes / should I incorporate overseas in a tax haven such as the Cayman Islands?
Thank you,
A: An S corp is superior to a regular or C corporation or a limited liability company. You would form a Florida corporation and within 75 days complete and file IRS Form 2553 with the IRS. Assuming your venture is profitable, you may be able to pay yourself a "reasonable" salary (subject to employment taxes) and also m ay be able to pay yourself bouses of any excess income that is not subject to employment taxes. You need to discuss this matter with an accountant first.
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