#1
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Starting an LLC/LP for poker playing
Has anyone given any consideration to playing poker through the use of a corporate/LLC/LP structure? It seems to me that since businesses can engage in any lawful activity (and in PA, where I live, online poker is not illegal), it would be silly to not form a business association to take advantage of the tax benefits available. For example, if you were the President of the LLC or LP, you could transfer your poker funds to the company and play udner your screenname on behalf of the entity. At the end of the year, rather than just having profits to pay taxes on, you could deduct ordinary and necessary business expenses such as laptops, internet, poker literature, etc. Has anyone considered this possibility, let alone done it? I am giving serious consideration to ponying up the 400 bucks to form the entities.
Ryan |
#2
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Re: Starting an LLC/LP for poker playing
First, you don't need to incorporate to deduct business expenses, you could file as self-employed and get mostly the same deductions.
Second, there are far more expenses and rules to follow around incorporation, than just the initial filing fee. Bottom Line, before jumping into the corp creation game, you should sit down with a professional and review the specifics of your situation, so that you can make the right choices. |
#3
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Re: Starting an LLC/LP for poker playing
Since Im assuming that you are not trying to protect yourself from business probelms that arise I can see no need to do this. You can take these write offs as a poker profesional. A corp will help you so creditors cant come after you personal finances or a lawsuit against the corp will not put your personal stuff at risk. "Unless you are doing something unlawful then the corp veil can be broken" I just dont see the benefit for a poker player to form a corp unless people are going to invest in you or something
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#4
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Re: Starting an LLC/LP for poker playing
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#5
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Re: Starting an LLC/LP for poker playing
OK, here's the issue. I am currently not self-employed. Poker is a hobby for me. I have a full-time job. hence, I cannot take the deductions without having a business. And, just as an FYI, I am a corporate attorney, so I know all the ins and outs of business associations. I would not incorporate, I would use an LP with an LLC as the GP (I would normally just use an LLC, but in PA LLC's have to pay this ridiculous gross receipts tax. LP's and LLC's are basically governed by freedom of contract, as opposed to corporations which are governed by state statutes and have many more hoops through which they must jump. Now that I have illustrated why I cannot do this without the business, does anyone see a problem with it?
Ryan |
#6
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Re: Starting an LLC/LP for poker playing
you realize online poker is going to be illegal soon, why bother now?
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#7
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Re: Starting an LLC/LP for poker playing
It still amazes me that people think online poker is illegal. The UIGEA bans transfers of money from financial institutions to and from gambling sites to custoemr's accounts.
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