Day Trader Saves $20K In Taxes Using an LLC!

[@adamharrington6888]

For those of you who are like me and prefer to get straight to the point...this video is GOLD starting at 3:44. Thank you for the information Brian!

[@Idkjustyet]

Thank you! 👏🏽

[@Lourd-Bab]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[@Lourd-Bab]

@user-qk9ro8rp8t However, if you do not have access to a professional like JUDITH ANN PEACE, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments

[@Lourd-Bab]

@user-qk9ro8rp8t Judith Ann peace is her name

[@Lourd-Bab]

Lookup with her name on the webpage.

[@Lourd-Bab]

@user-qk9ro8rp8t You are welcome .

[@Mv3Trader]

You just earned yourself a sub in the first minute battle!

[@sams2495]

You're the only one i know that talk about taxes when trading I'm glad i saw you're channel. Thank you

[@jarjarnitro58]

he'd be a bad cpa if he didnt talk about taxes sometimes.

[@danballard5952]

Don't forget that you now have to Pay SS Taxes of 12.9% and 2.9% for medicare taxes that you didn't have to pay as a regular day trader (non day trader status). If you make 100k - you pay an extra $15,800 in taxes. The SS tops out at $142k but the medicare taxes go on forever. In addition - you have to pay much higher Professional Data Fees to your Broker and data vendors ($1,0o0 + per month - Well over 12K per year) So if you go this route, and make $100,000 trading, you pay $27,000 more than you would have if had not declared yourself a professional.

[@S1lv3rdo7]

What a different level of information coming from a professional. This man is so on fire with this information. Awesome stuff.

[@KS-qi6jh]

Brian, I am glad I found your channel! Keep them coming! Active Marine from '05-'09, love that our military personnel/veterans are showing their worth!

[@crisbiz2754]

Wow nobody ever, no trader ever talked about this on youtube. thanks, My trading journey is just strating and I suscribed to this channel.

[@peteypablo8687]

The mindset of a entrepreneur!! Love it !!

[@bishalnayak6162]

Please make a video on how to open LLC for Trading. Thanks

[@zulemapearce4949]

Best video I've watched on taxes for traders yet... Thank you so so much! God bless you and your family

[@TROB214]

wow you are cute

[@Float_Locker]

Great info! Creating an S-Corp is a great idea I’ll look into that! Subscribed! Fellow Army Veteran too, HOAH!!

[@MarketConversations]

Nice! I'm an Army Veteran too!

[@fanjacobs]

👍Or you can do what he said in the video to form a LLC and choose to be treated as a S-Corp

[@matthewgomez6024]

Keep doing what your doing your channel should boom in 2021. Amazing content and one of my new favorite channels!

[@gennytrickett1580]

Sounds like your very knowledgeable!!! Having a trader as a tax acct would be a good thing

[@kyennerell]

Thanks for this video. I plan to convert two cash trading accounts to an LLC this year, but was on the fence about staying with my local CPA or going with a specialist CPA. You've convinced me to go with a specialist since every situation is unique.

[@dronesovertexas8833]

Can't wait to do business with you, mainly because you educate me on KZbin. Your hard work paid off and you created a customer by teaching me I can be more efficient from learning from your services.

[@RSI24]

Established my LLC last month before I start swing trade

[@ChrishaynaGrant]

I truly appreciate your wisdom! I have been having the feeling to set up my brokerage account under an LLC and this video provided me with so much valuable information on which direction to go in! Blessings to you and your family.

[@cd-rom.]

I’ll keep you in mind brother. 🚀

[@cancanturco]

Great. Brian, Do you prepare Taxes for CANADIAN Day Traders too?

[@brokemalone7011]

Would love to see you talk more about forming companies, different types of companies

[@Theorytheorythesis]

The win win, 3k trade into 20k trade, from a day or swing trade perspective to a tax reallocation perspective, both percentages are definitely a win win. It makes absolute sense now. Thank you bro 🙏🏾

[@DJBioMusic]

Dude I have been looking for this video without knowing it for like 2 yrs lol

[@clint8u]

Thanks very helpful ... I opened my Multi member LLC but not as a SCorp I will be making that change ... but the 401k info ?... that was a lil nugget of gold !.... ty

[@LakesideTrades]

Thanks for the video! Your voice is super easy going to listen to. Makes learning the boring stuff (taxes haha) more interesting. Cheers!!

[@kymaneezmom]

I need to find out how to help a day trader that I know a little elderly but is just now getting an LLC to help his self out. Thank you for this video Great instruction

[@dalton8625]

I love that bear picture above your screen. It speaks volumes to someone that has trading experience 😅

[@SavantP]

I think a Raging Bull is better

[@dalton8625]

@@SavantP same but those bears are always sneakin’. Like the picture says

[@aollendorf]

Thanks for your service Brian!

[@eryan9250]

I definitely need to start looking into doing something like this. i will see how this year pans out. Last year was amazing. 2000% return this year is off to about 350% return so far. So I definitely need to set myself up better in terms of business and tax structure moving forward. This will be my first year doing taxes for my trading so I will see how it goes. GREAT INFO HERE THANK YOU!!!!!

[@livefree4937]

What did you end up doing to save on huge tax bill?😢

[@treizekhushrenada3539]

Thanks watched many videos on this topic and you hit every point that's been missing

[@BrianRiveraCPA]

My man thank you!

[@Mr5Stars]

Thank you Mr. Brian, that was presentation. Clear , informative, a true expert talking !!!!!

[@nachshon8602]

Thanks for your Service, was Active duty and been out since 2016 and just a beginner trying to understand this whole trading language to see how I can use my LLC to trade.

[@CrossTimberRanches]

i already own a business llc and file as an S corp... can my currant business "invest" into Crypto as an investment?

[@DPDP21]

Can tell me how u file as s Corp how did u converge those together

[@CrossTimberRanches]

@@DPDP21 s Corp is just a way to file as an LLC .. there are other ways to file taxes

[@RelentlessTrader]

Good to see another brother killing it. Good video.

[@chrisr.1562]

Hi Brian, does someone have to qualify for "Day Trader Status" in the eyes of the IRS first, BEFORE they can structure their trading under an LLC? I've been day trading for my sole income for 4-years, but the frequency of trades in a given year is about half the required 700+, or so I've been told that's the number the IRS looks for

[@vchafab]

I have been trying to find the answer to this for 2 days.

[@ashb6267]

Awesome! Thanks for sharing this

[@Tweetogreggieb59]

I told you guys a discount sale of America was coming. It's time to buy your piece of the pie. Personally, I've added to TSLA & AAPL after the price dropped by -1.5% on each this morning and plan to buy more of each if they reach -2%. PEACE ✌ OG-RB I got your back, with God as my witness!

[@JohnDuncan0347]

Thank you for serving.

[@georgehasty4111]

Solid and useful information; value-added for prudent market participants and your videos are always on point!

[@thedarkknight2329]

Boom! And thank you for your service!

[@cryptoscotts]

Quick question: if you are a funded (prop) trader, is the income you make (profits you withdraw that are split with the funding firm) considered capital gains or income? (note that you are not investing capital into the trading, the funding firm does that)

[@JohnDuncan0347]

My question exactly.

[@lustgod722]

it’s be self employment income

[@a.p.184]

Well, im very picky about subscriptions but... you got me! i can recognize knowledge, and you have it .... a lot... thanks for taking the time to share it with us!

[@rafaelmiranda3466]

Thank you for providing so much value and thank you for your service sir! *Salute*

[@sblijheid]

You made me so happy by providing information I so desperately needed.

[@evelynoliver477]

Great video... It's unfair on how things have turned up to be due to the recent world pandemic things has been so difficult, We see complains here and there on social media from different people in different parts of the world. I suggest that we all should engage in different things to make money and stop hoping on the government....I'd strongly advise any newbie in trading to seek help from not just any trader but an established trading expert

[@stonesmount5149]

I thought of investing in btc some time ago but was discouraged by my friends

[@stonesmount5149]

What's the best way to get started with trade because I've been making my personal research for a while now

[@nickjames4799]

First thing to do is to stop all form of trade and seek the help of an expert to guide you through

[@nickjames4799]

I've been hearing alot about expert Roza Agina lately. She must be good for people to always make mention of her

[@ronmichael7278]

This isn't the first time Roza Agina name is been mentioned as a professional expert

[@frantzsterlin5605]

Thank you so much for your great video. I am subscribe to your channel now. I am new to day trading so far I have lost and blown accounts. I look forward to hearing and working with you.

[@williamjohnson5877]

Trade futures I have an LLC start up with plans to trade options, stocks and futures thru the LLC. So far, I have had difficulty finding a brokerage firm to approve my LLC for trading account. I was declined by one brokerage firm that has application specifically for LLC. Another took so long with processing application that I finally cancelled. Another firm simply told me that they were not offering accounts for LLC’s. I am not sure why I am experiencing this, but would like to know if you are familiar with a solid quality brokerage firm that allows futures, stock and options trading via LLC?

[@williamjohnson5877]

@Investopedia The main thing that I wanted from LLC trading account was liability protection. If someone gets injured on your property and decides to sue you, money in brokerage accounts are just as accessible as money in your banks checking account for creditors. If your money is in an LLC and the brokerage account is set up for the LLC, then the money in the LLC has asset protection from creditors, should you get sued for some reason not related to the LLC.

[@davidrobles1360]

Ninjatrader

[@timmyjones1921]

Wow you are a true pro & thank you for serving your country also , American's need more experts like you brother God Bless You.

[@WeAreMethodic]

Thanks Brian, great video! So many questions - perhaps for a follow up video... What happens tax wise when you initially fund the s-corp? On the other end how do you get funds out efficiently? You're paying yourself some salary (ordinary income) and 401K. How do you get other excess funds out? Pay yourself dividends? How does this impact estate planning?

[@BrianRiveraCPA]

The initial funding is classified as a capital contribution and because this is a pass through entity the net gain/loss is passed to the individual shareholders.

[@adamsmith9870]

​@@BrianRiveraCPA So if the entity sells your capital contribution, they have to pay tax based on whatever your personal basis is? Is this true even if it's an S-corp?

[@DrewTruthLA]

This is the best thing I have seen all week! I need this schooling bro 😳

[@Zk8et]

Thanks this really helped a lot! I’m also beginning my day trader business and looking to start an LLC. :)

[@TheOMGFlavio]

Afro Latino making a bag! I love it bro keep up the good work and represent

[@icanduo]

You're awesome! I'm sure you would make great homeschool teacher as well. Thanks for the information.

[@healthfullivingify]

Thanks for a great video, Brian. I'll be n touch for your expertise.

[@skitzobunitostudios7427]

Hi Brian, I presently make seed money by renting rooms in two of my homes. I also day and swing trade and love it. I would like to incorporate and take trading earnings and buy another rental property. Can I at the end of the year, take my trade earnings, buy a condo or whatever and write of that money as investment into the business? And basically use the cash I wouldve just sent to the government. I live in Clearwater Fl

[@Random.Adventures.]

awesome i just came across you channel i have subscribed. I'm from Ontario

[@Veteran_Nerd]

I have a question. How the heck do you have less than 4k subs?! great info!

[@PhuongTran-lt1ke]

Thank you Brian

[@themoreyoupuzzle8819]

I have made enough money selling options on Tesla to buy an actual Tesla. Can I write off a Tesla Model 3 for research purposes? This is a real question.

[@ungree]

this is a great question, esp bc of the recent free full self driving tesla promotion that ends tomorrow. hopefully Brian sees your question! 🙏

[@TheHelghastkilla]

If you aren't labeled as Trader Tax Status with the IRS, or have a LLC, then you can't do any write offs. You're just a regular investor.

[@matthewgomez6024]

If you do what meet Kevin does and slap your name and brand on the Tesla then it’s fully deductible as advertising expense

[@jaeko1911]

Solid video

[@CashFlowFinance]

Do you think it would make more sense to begin with just a regular LLC for day trading if you're starting with a smaller account? And when it comes time to file the S-Corp election, if the client's day trading LLC is owned by a holding LLC, is it better to file the election for the holding LLC or the subsidiary which performs the day trading?

[@deter78jg]

Liking, sharing and subscribed. Thanks for all the Golden nuggets brother.

[@zillionairesclub2983]

Trading under LLC, does it mean I have to open corporate trading account in my broker (what typically means higher fees, more paperwork to open, etc. headache) or I can still keep personal trading account?

[@roadrunner2439]

I want to know that too

[@Rikity]

Yep they ask you these questions and it does affect the data feed even. As an individual you dont have to pay extra but a business does have to pay

[@purelovexist]

Yes you do

[@davidallen-w7q]

Good Info Brain, USMC!

[@LucidSoundz]

If you open as an LLC as a trader do you have to pay quarterly taxes or yearly?

[@vietcong1001]

Yes

[@Kenny.zo27]

Get your money up and schedule an in depth talk with my army fam in the video, I’ve worked 3 w2 jobs in 2021 and I trade forex, I’ll be connecting very soon with my dad who also started trading forex with me and my grandma.

[@Jewish-Bandera]

@@vietcong1001 YES what? Question was quarterly or yearly

[@vietcong1001]

@@Jewish-Bandera It's Quaterly for LLC Businesses and yearly for Income Taxes

[@TheEpistemicOne]

Thank you for your service! Also, really glad I found your channel.

[@camselkirk7248]

Super informative, thanks a lot. For someone who is just starting out with trading, would you recommend creating an LLC at the beginning? Or is there a certain threshold where you think starting the LLC makes more sense?

[@Goodpatron]

I'd like to know the answer to this too.

[@jordonpumpin]

Idk if you noticed but every single comment is people asking questions. Bruh pay for a consultation lol why would he answer everyone's questions for free...

[@camselkirk7248]

@@jordonpumpin well “bruh” it’s free to leave a comment so it doesn’t hurt to try. But apparently you know more than every single person that has left a comment so good for you buddy. Thanks for your very constructive feedback 😉

[@SleepyMagii]

Solid question, thats Exactly why im here ✊😏

[@Rojas_ariana]

Amazing information, I am spreading the word about you, and will be following your videos

[@WagsTradez]

Excellent video Brian! I have a quick, sort of general question (apologies if you addressed this elsewhere and I haven't seen it). At what point would you say it would behoove me to incorporate my trading into one of these entities? For example, would it only be meaningful or beneficial if you were making "x" amount of dollars per year? Or even if you're not making much at the moment, it's still good to get one started? I currently have a full-time career as an engineer if that plays a factor on taxable income and what would be best. Thank you in advance brother - hope to work with you in the future when my trading is leveled up some more!

[@tjunior6128]

You sir just earned a new client. Thank you for this!

[@RSI24]

Once an LLC is established, do you deposit realized gains into a bank business account tied with the LLC?

[@robryan751]

Think of it this way. If you are audited. How easy is it to gather your information? And, how easy is it for the IRS to decipher information without creating new questions.

[@jeanyvesserfilus5003]

I'm very glad to found your Chanel good job

[@manuelpimentel31]

Question: Does the llc or trader must get a finra license to do what you described?

[@kayyes1599]

Very helpful. Thanks to this CPA...kudos!

[@FailFlopFly-SalesforceImports]

Hey Brian, I'd love to schedule a call with you before the end of the year, but I noticed your calendly is full til Jan. Any chance you could fit me in with someone in your firm?? Cheers!

[@martinrobert6688]

I made 100k this year and trying to figure out what to do. Can I still write off expenses for this year if I open an llc in December? Or am I too far into the year to do anything about this?

[@RSI24]

You have to had made that money under your LLC

[@justinrivera5958]

Thank you I will be reaching out to you this week, starting the llc!

[@emailwilliamgrobanmanageme6677]

The Rich are rich not because they look rich, but rather becAuse they possess the skills and strategies of the rich.The rich invest their money first into asset first before purchasing liabilities.the rich build multiple incOme streams to diversify thier income

[@eastonezra2103]

crypto is already taking over the world's economy Bitcoin most especially

[@wellsdells8946]

that is why I had to start forex trading 2 months ago and now I I'm making benefit off inside

[@masonnoah8306]

automate trading service is obviously the best I invested 8000 and I made profit of 47000 in weeks

[@comfortudoiyak5196]

their success story is everywhere please how can I reach automate

[@genesishaisley7019]

i was so ignorant when I started investing and I have made so much since my first Investment I guess it was worth it after all

[@ramonentringer3536]

Awesome video! God bless you sir!

[@orsolapisani7129]

Nice content but I'm pretty satisfied with sir Clifford's schemes

[@tanjaivankovic2998]

I have also traded with Mr yutzy services and I must say his techniques are simply unique and stable

[@mujursihombing606]

I never realised that mister Clifford yutzy had subscribers on here that has made good profits from his top class skills in account management and I can assure you of how reliable his trading services and system are

[@ero-tg7er]

his strategy and techniques are something I seize to understand and I must say his techniques are simply one of a kind, a true Brainiac I admit😍😍😍me he stay blessed wherever he may be at this moment

[@angietube8606]

His a true maestro that's know the trade very well and his inata gram handle is Yutzytradingspot

[@martimpereiracosta2584]

I don't invest or partake any account management scheme than his regardless how enticing it may appear

[@TanjaTrades]

super informative thank you

[@rahulavasthi]

Thanks for the video Brian. I had a question on the brokerage that would work best for day traders having an LLC. It seems most, including ETrade need a SSN or ITIN, while as an LLC I only have an EIN

[@Wrellothere53904]

I can tell hes using TOS by the background of his computer

[@theforexbully5582]

Awesome video! Just liked & subscribed can't wait to view the rest of your videos!

[@scorpionqueen1]

Awesome video wish I was in Florida😪

[@kian2415]

Warning ⚠️ this suggested strategy will only work if you can prove you have Trader Status as IRS defines it. Getting such a status is very difficult and IRS has challenged many such claims... so be careful

[@apexvadeor3670]

Have 25 knob account?

[@El_Lobo_Blanco]

I already know who to contact when im ready to trade thx bro

[@SeatonH]

It’s incredible how much one stands to attain with professional assistance in the stock market, courtesy of the trading services of Nigel K. Phineas I’ve generated a passive income streamline from my profit returns

[@Josep61]

Mr Nigel phineas has got my attention for a while now and I’m really considering acquiring his services

[@Edzupp]

@@SeatonH Hi how do you earn such? I’d like it if you recommend some positive approach to this

[@SeatonH]

@@Edzupp For a while I struggled with series of reoccurring losses not until I decided to reach out to a trade expert Mr Nigel, as he handles my trading analysis and all executed with his superior expertise of the market giving me a much better standpoint and chance of earning colossal profit returns. He does this for a service fee of 15% charged from actualized profits

[@SeatonH]

@@Edzupp You can reach out to him on email if you need his assistance

[@SeatonH]

Nigelkphineas@gmailcom

[@blackmonfrancis5987]

Trading is easy and safe with the right help that's why I trade with Mrs Theresa she's the best

[@blackmonfrancis5987]

+ 1 ( 6 5 0. ) 8 2 2 -7 1 7 8

[@blackmonfrancis5987]

Reach on what'sapp

[@carlmike770]

I have made over $5000 trading as a beginner under the guidance of Mrs Theresa she's amazing

[@masongrant6375]

I thought I was the only one who trades with Mrs Theresa she's really great I have made close to $30000 this month trading with her system

[@jamesgalloway4968]

very informative video thank you for the great content. And more importantly thank you for your service to this great country.

[@Ephenyx]

My man’s is a major. This man is making so much money

[@JoshPendergrassFilms]

reserves

[@Ephenyx]

@@JoshPendergrassFilms Major is Major.

[@JoshPendergrassFilms]

@@Ephenyx I understand that man I just got out of the actual army on active duty, just saying reserves because the pay is not very significant unless you’re active duty

[@Ephenyx]

@@JoshPendergrassFilms Well, Yes I understand too. I was just saying its cool that he is a Major in the Reserves. I understand that they don't make a lot when they drill but when he gets deployed (which he most likely has ) or is on ADOS he makes decent money on top of what he is already making and he's also close to retiring soon which is truly admirable. Nation guard gang. gang gang

[@JoshPendergrassFilms]

@@Ephenyx For sure man no disagreement there!

[@belleslumieresstudios8560]

Thanks for this info. Retiring within the year and looking towards day trading as a significant business approach going forward. Your video has answered some relevant questions in great clarity that is pertinent to avoiding unnecessary conflict with the IRS as an upcoming trader, as well as being a photographer. While more questions shall arise in the future pending levels of success, your information is retained. Thank you once again.

[@gatsbylight4766]

I won't say that the information in this video is incorrect, but I will point out that these are complicated tax structure issues which should be discussed with your tax preparer or CPA. A couple of points for example would be: *SOLO 401(k)* [6:08] Brian [referring to a solo 401(k)] says that _"...and because you're a day trader, you can continue trading that income tax free..."._ There are some details that should be pointed out on that point: While yes, you can continue trading that income without paying taxes in that same year on any gains - i.e. you won't pay taxes in those same years that you are trading out of that 401(k) and making gains. However, a regular 401(k) is not tax-free, it is tax _deferred._ You 'will' pay taxes on that money when you retire and start withdrawing that money. If, however, instead of a solo 401(k), you decide to setup a solo *Roth* 401(k) - then yes, that money will grow tax free and you won't pay taxes on it after you retire. Although, that money that you contribute to a solo Roth 401(k) will *not* reduce your tax burden the years that you are contributing to it. Contributions to a Roth 401(k) are _after_ tax - i.e. you pay taxes on *all* of your income, regardless of how much you contributed to your 401(k). *SELF-EMPLOYED HEALTH CARE DEDUCTION* *A)* You don't need to incorporate or organize as an LLC in order to qualify for the self-employed health care deduction - you just need to be self-employed. *B)* If you are a trader, your trading income (as Brian points out) is _capital gains,_ not 'self-employment income'. So, you can't deduct health care expenses. But keep in mind that if you organize as an LLC and elect S-corp tax status, that does not change the nature of your income; your trading income is still 'capital gains' *if you have not qualified to be considered by the IRS as a 'trader in securities'* (trader tax status). And therefore, the 'reasonable salary' that you pay yourself under the S-corp status will be W-2 regular employee (of the S-corp) income, not self-employment income. The IRS did not make life simple for traders. So, I repeat: Consult with your tax professional. Or, as Brian says: _"(The entity structure)... is not a one-size-fits-all approach... Make sure that you are working with a CPA firm that specializes in day traders"._

[@unkulunkulu1735]

Thanks for this information! You opened up a whole new world for me!

[@coreykindhart25]

Great info. Look forward to you posting more.

[@CbH7]

Thanks for your service !!!

[@josiaaah_m]

Love this video man! It was exactly what I was looking for and then some. And thanks for your service brother. I actually just finished my 2nd enlistment last week and am now pivoting in a new direction with help from videos like yours.

[@lpalmermitchell]

This video is a godsend

[@ricocampos7860]

Thanks you for this! Its right on-time.

[@soulwiththedollarsign]

would this also benefit with a prop firm trader, since we evade capital gains since it’s not our own capital, & is taxes as 1099 miscellaneous income?

[@25kronk]

Awesome video