INVESTORS
SERVICES: ENTITIES

Entities for investors

Forming an investor entity allows you to establish a retirement plan and/or other tax-deductible and tax-deferred employee benefit plans. These are not available for unincorporated investors. Before you take the entity plunge, though, you should consult directly with our Robert A. Green, CPA. He literally wrote the book on investor and trader entities (see his many articles on the subject in Active Trader magazine).

The same types of entities we recommend for trading entities we recommend for investor entities. However, since investor entities lack "trader tax status," investors are stuck with the less beneficial tax treatment for "investment expenses" (itemized deductions). Click here to learn more about entities. We can modify our entity choices for business traders to best meet your needs as an investor.

An investor entity may pay an administration fee to you and this "financial engineering" generates "earned income" for purposes of paying self-employment (SE) taxes, contributing to a tax-deductible retirement plan and deducting health insurance premiums.

Another firm takes this one step further for traders and suggests they deduct their investment expenses as money management expenses in connection with the administration fee – either earned on a Schedule C or a C-Corporation. We think this firm goes too far and this may get taxpayers into trouble with the IRS. Yes, we advocate financial engineering to pay SE taxes and contribute towards your retirement. We feel it's going over the line to deduct investment expenses as disguised business expenses. Each client's facts and circumstances are different, though, so if you want to swing for the home run here, we first suggest a consultation with one of our top CPAs.

A GTT Mini 401(k) plan is the plan of choice for investors. The same benefits that apply to traders apply to investors. Click here to learn more.

To get started, please purchase our retainer on our trader entities page, click here.

If you have any questions about our investor entity services, please contact us at info@greencompany.com or call us.