How to save money on buying stonks with llc

New
cheescorn

New

cheescorn
Apr 13, 2021 8 Comments

I was blind up until now. Recently had a chat with my CPA and apparently if you have a contract job or have a source of income that goes to your LLC, you can buy stonks from under the company and then cash it out as dividends. Meaning, you’re going to pay just 0/15/20%.

Instead i was paying freaking taxes on my income and then buying stonks to later pay the income tax.

How dumb i was...

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TOP 8 Comments
  • WeWork
    neumann

    Go to company page WeWork

    neumann
    My CPA told me to avoid handling capital assets through my LLC. He said I could trigger taxes with high enough trade volume.
    Apr 13, 2021 1
    • New
      cheescorn

      New

      cheescorn
      OP
      Oh, that might be true. I’m more like “buy it and forget about it” type of dude. But following this thing helped me to save another $1.2k/mo 🤷‍♂️
      Apr 13, 2021
  • I believe LP is more appropriate form for hedge fund? But the issue can you work at 2 companies...
    Apr 13, 2021 4
    • New
      cheescorn

      New

      cheescorn
      OP
      Shouldn’t be the case. I worked at a startup before where we even weren’t allowed to take any pictures inside and had no right to tell anyone where the company is located (apparently, it was a bust lol). But i checked with HR and they said it’s ok. I don’t think it’s even legal in California to ask if you have a second job. Until you’re not doing your job from your work computer in your working hours - it’s non of their businesses
      Apr 13, 2021
    • New
      cheescorn

      New

      cheescorn
      OP
      Clarification: until you’re not working for a company on the same market. But non-compit agreement is also illegal in CA
      Apr 13, 2021
  • New
    Centurion*

    New

    Centurion*
    How do you show proof of employment with pay stubs if your payment goes to LLC ?
    Apr 15, 2021 0