Setting up companies for tax benefits

[Tupacia]

Ask a lawyer, not a poker forum.

[EchoTek]

Thanks for the advice. I plan on talking to a lawyer and an accountant.
But before I do, I thought that I may be able to get a little info from people who may have some experience with such an investment by asking in the "Business, Finance, and Investing" forum.

[spex x]

[ QUOTE ]
Ask a lawyer, not a poker forum.

[/ QUOTE ]

I agree. IMO, this question is too complex to answer in the context of this forum. IMO, it'd be best to find a lawyer that is also a CPA to ask about this. A competent non-CPA tax lawyer would probably be qualified to answer this question too. Do yourself a favor and hire a CPA tax lawyer rather than some random lawyer from the yellow pages - he'll save you lots of cash in the long run.

[Tupacia]

Didn't mean to come off as blunt, but your question is so open-ended as to be unanswerable. Questions of liability, tax benefits, etc. are always so personalized based on the specifics of the partnership and the operation of the business that you won't find any useful advice no matter how much detail you give.

There's no set "playbook" for limiting your liability and getting tax benefits; it's all situation-dependent.

[EchoTek]

I understand. Maybe I can put it in a way that would make it more clear.
Basically I am making an investment in a company. The return on my investment will depend on the profit of the company. The return on my investment will be paid every two weeks.
If it was allowed, I would make this investment using money from something like my Roth IRA, that way, I would not have to pay very high taxes on my return.
I am pretty sure I can't use my Roth IRA to make this investment. I am wondering what other types of investment accounts or business entities I could/should use to help with taxes.

[spex x]

[ QUOTE ]
I understand. Maybe I can put it in a way that would make it more clear.
Basically I am making an investment in a company. The return on my investment will depend on the profit of the company. The return on my investment will be paid every two weeks.
If it was allowed, I would make this investment using money from something like my Roth IRA, that way, I would not have to pay very high taxes on my return.
I am pretty sure I can't use my Roth IRA to make this investment. I am wondering what other types of investment accounts or business entities I could/should use to help with taxes.

[/ QUOTE ]

Oh, ok, totally different question. What you need is called a 'self-directed IRA'. There are a lot of rules for SDIRAs, but the gains are taxed-deferred. YOu can learn more about SDIRAs here:

http://www.penscotrust.com/education/IRAs.asp

[EchoTek]

[ QUOTE ]
[ QUOTE ]
I understand. Maybe I can put it in a way that would make it more clear.
Basically I am making an investment in a company. The return on my investment will depend on the profit of the company. The return on my investment will be paid every two weeks.
If it was allowed, I would make this investment using money from something like my Roth IRA, that way, I would not have to pay very high taxes on my return.
I am pretty sure I can't use my Roth IRA to make this investment. I am wondering what other types of investment accounts or business entities I could/should use to help with taxes.

[/ QUOTE ]

Oh, ok, totally different question. What you need is called a 'self-directed IRA'. There are a lot of rules for SDIRAs, but the gains are taxed-deferred. YOu can learn more about SDIRAs here:

http://www.penscotrust.com/education/IRAs.asp

[/ QUOTE ]

Thanks for the link. I have looked into Self-directed IRA's before and I really like the idea. But I don't think I am going to be able to take advantage of that with this oppurtunity at this time, unfortunately.

[spex x]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
I understand. Maybe I can put it in a way that would make it more clear.
Basically I am making an investment in a company. The return on my investment will depend on the profit of the company. The return on my investment will be paid every two weeks.
If it was allowed, I would make this investment using money from something like my Roth IRA, that way, I would not have to pay very high taxes on my return.
I am pretty sure I can't use my Roth IRA to make this investment. I am wondering what other types of investment accounts or business entities I could/should use to help with taxes.

[/ QUOTE ]

Oh, ok, totally different question. What you need is called a 'self-directed IRA'. There are a lot of rules for SDIRAs, but the gains are taxed-deferred. YOu can learn more about SDIRAs here:

http://www.penscotrust.com/education/IRAs.asp

[/ QUOTE ]

Thanks for the link. I have looked into Self-directed IRA's before and I really like the idea. But I don't think I am going to be able to take advantage of that with this oppurtunity at this time, unfortunately.

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Personally I'm not aware of any other way to selter earnings from a small biz investment other than a self-directed IRA. If you do find something let me know - I'll add it to my investor pitch.

[jively]

If you are just an investor, you should have no liability problems.

A CPA/attorney will know better, but I don't think you will be able to save any money owning this with a corporation. It may actually be worse as your capital gains are taxed as ordinary income.

-Tom