Set up investment company
by SrEngRet, Window Shopper
- Created: August 12, 2009, 9:15 pm
I'm considering setting up an investment company that holds stocks, bonds, ETFs, mutual funds, REITS, closed-end funds, etc. I likely will set it up as an LLC.
Spouse and I will be member-managers. No shares sold to public or family.
I would make buy and sell decisions from daily or almost daily research. Day trading is not likely to happen.
Does anyone have experience with this?
Goals: Profit, asset protection, retirement plan.
As I understand now, I won't reach trader status since I will likely only buy and sell intermittently. Goal is to receive dividends and capital gains from either short term or long term buying and selling. I won't be able to use mark-to-market accounting either.
My research indicates that spouse and I can be independent contractors as consultants to the LLC. From there, we can set up individual 401Ks as long as we are paid a fee by the LLC.
Would the LLC have to follow passive investment holding company rules (whatever those are)?
My research has been on the traderstatus.com and greencompany.com websites.
I'd like to hear your concerns and advice.
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