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Subject:  Re: Incorporating a Securities Trading Business Date:  7/25/2006  9:50 AM
Author:  wrjohnston91283 Number:  87951 of 127616

Well a C-corp would tax the entity's earnings upwards of 35% before the individual ever sees the money, while an S-corp would not.

A C-Corp would have to pay a salary to produce earned income, while a passthrough would not necessaraly, the passed through income may qualify (but payroll taxes up to 15% would be due on the passed through "self-employment income")

It looks like either way there's going to be 15% (payroll on S-Corp) or 35% (C-Corp tax) additional taxes plus the taxpayer's own tax. Would benifits from the deductions from expenses plus the retirement plan outweigh that?

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