Hello:Does anyone use a Nevada corporation to trade?Hermes1LA@aol.com
Does anyone use a Nevada corporation to trade?I certainly hope not. It doesn't make any tax sense to do so. A corporation (regardless of state of incorporation) has several problems:-They don't have preferential tax rates for long-term capital gains.-They can't deduct capital losses, except against capital gains.-Without any business activity, they run afoul of personal holding company rules, the worst being a flat 39.6% tax rate.I'm sure others probably know of more drawbacks. The only benefit I can think of right now is some possible protection of the assets of the corporation from personal creditors. But even that is pretty weak protection and at a pretty high tax cost.--Peter
Hermes:You write: Does anyone use a Nevada corporation to trade?Comment: Several folks that have fallen to the advice of the Wade Cook seminars follow this route. In Texas, his group is not allowed to practice law in setting up these things but people do it anyway. Check the laws in your state to see if it is allowed prior to shelling out the bucks.Jenn
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