Set up a corporation to receive your poker winnings for tax purposes?
 

note: I live in the United States

I remember reading an interview with Patrick Antonius. He was asked about a high tax rate is some European country like Norway or Sweden or something in regards to a tournament. I guess the winner would have to pay something like 70% of there winnings in taxes in that country. He said that all of his winnings go to his corporation. I imagine there would be great tax benefits if you could set up yourself as a poker playing corporation so to speak. (Or so I gather from reading the book 'rich dad, poor dad'). There would be no 15.3% self employment tax to begin with. Other taxes for corporations tend to be lower than those on income. Can anyone shed light on this as a possibility?

Re: Set up a corporation to receive your poker winnings for tax purpos
 

It depends what kind of corporation. In the US a C-corp pays twice as much tax than an S-corp. But a C-corp has other benefits. And a non US resident cannot own shares in an S-corporation, in the US. So someone from Sweden could only open a C-corporation in the US, unless he/she had dual citizenship (meaning, US citizenship) or at least be a lawful permanent resident of the US (meaning, have a Green Card).

Re: Set up a corporation to receive your poker winnings for tax purpos
 

...follow up...

But corporations have other taxes to pay, depending what city or state the are incorporated in. That is also something to take into consideration.

Re: Set up a corporation to receive your poker winnings for tax purpos
 

And you still have to pay self-employment taxes as an employee-owner for any salary paid to yourself.

Re: Set up a corporation to receive your poker winnings for tax purposes?
 

I've discussed setting up an S-corp with my accountant...talk to one, it has its plus and minuses...I'm not a CPA so I won't go into my 2 cents. But it's worth looking into.

Re: Set up a corporation to receive your poker winnings for tax purposes?
 

[ QUOTE ]
I've discussed setting up an S-corp with my accountant...talk to one, it has its plus and minuses...I'm not a CPA so I won't go into my 2 cents. But it's worth looking into.

[/ QUOTE ]

I have considered this or an LLC, but I can't claim to know much about it at this point. If I learn more about it, I will post the info I gather.

Re: Set up a corporation to receive your poker winnings for tax purposes?
 

[ QUOTE ]
[ QUOTE ]
I've discussed setting up an S-corp with my accountant...talk to one, it has its plus and minuses...I'm not a CPA so I won't go into my 2 cents. But it's worth looking into.

[/ QUOTE ]

I have considered this or an LLC, but I can't claim to know much about it at this point. If I learn more about it, I will post the info I gather.

[/ QUOTE ]

feel free to pm me the more you find out...maybe we could make an official "staring a poker corp" thread or something

Re: Set up a corporation to receive your poker winnings for tax purpos
 

An LLC elected to be taxed as an S-Corp would be really advantageous.

If it was legal for poker.

(It might not be. Ask a lawyer.)