Conducting your trading business in a entity unlocks several additional tax benefits.
We help form trading entities only, and traders should read Entity Solutions. We focus on providing tax and accounting advice. For non-trading entities, we are happy to consult you on tax strategies and structures. For investment management entities like hedge funds and management companies, visit our investment management section.
Before you sign up for our entity formation service, please have an initial 30-minute consultation with Robert A. Green, CPA or Darren L. Neuschwander CPA to determine if an entity is right for you. For example, some traders may not qualify for trader tax status which is required in an entity for business tax breaks.
Choose our service level below
Trader Entity Formation Service: During your initial consultation, we recommend the best entity strategy for your specific circumstances and goals. During the entity formation meeting, we:
- Finalize the entity plans and form a LLC or corporation using our BizFilings services (see below). (General partnerships don’t require a state filing.)
- We go through formation and start-up tax issues including ownership percentages with a spouse, profit-sharing special allocations, initial capital contributions, tax elections (S-Corp, Section 475 MTM securities, Section 988 forex), employee-benefit plan deductions (retirement and health), tax strategies including Section 195 start-up costs and Section 248 organization expenditures, banking needs, accounting solutions and expense reimbursement plans.
- It’s all included in our basic service and price, which also includes follow-up questions.
Trader Entity Formation & Tax Compliance Package: Most clients who use our trader entity formation service engage us for our tax compliance service. We design our trader entity formation strategies and structures for maximum tax benefits and it’s important to use our tax compliance service to collect those tax breaks on your return. Don’t let the tax breaks fall by the wayside by not attending to them on a timely basis, like executing payroll and employer Solo 401(k) retirement plans before year-end. We assign a CPA from the start to answer your questions on tax planning, which is a key element in our tax compliance service.
Trader Entity Formation, Tax Compliance & Accounting Package: You can add on our accounting services, too. A good outcome on our tax compliance service partially depends on the quality and timeliness of your accounting solutions..
BizFilings online incorporation service
We use bizfilings.com for forming LLCs and corporations in all states. We don’t need an online incorporation service for forming general partnerships. We use their service during our meetings and the client pays the cost directly by credit card. (We are a long-term paid affiliate of BizFilings.)
Outside attorney service for legal paperwork
We are not a law firm and you should consider engaging an outside attorney for legal services. We’ll recommend an attorney that has worked with us for many years and she can handle execution of the legal paperwork, including:
- Corporations and LLCs: online application for federal EIN (tax identification number); guidance on local applicable laws pertaining to tax registration. For LLCs: customized standard operating agreement and resolutions for those electing or considering S-corp status; preparation of state and federal S-corp election. For corporations: customized standard bylaws, minutes of first shareholder meeting and resolutions; resolutions for those electing or considering S-corp status; preparation of state and federal S-corp election.
- Partnerships: name check, guidance on local applicable law on fictitious business names (FBNs), online application for EIN, guidance on local applicable law pertaining to tax registration, customized standard partnership agreements and resolutions.
- Disclaimer: Our outside attorney and BizFilings advise clients throughout the U.S. Some issues vary by state, county, city and town jurisdiction. Consider getting local attorney advice for compliance when appropriate. There are other issues to consider like local property taxes, too.
- Price: Our outside attorney charges $225 for most of these engagements, except if you have a profit-allocation clause it’s $325.
Our trader entity formation fee is $395. Our outside attorney is $225. Total is $620 for a general partnership.
For an LLC or corporation, including with S-Corp election, add the bizfilings online incorporation fee of $99, plus $60 if you want it expedited. State filing fees vary and the average is around $150. Total is generally under $1,000, including our fee and the outside attorney, too.
If you have any questions about our trader entity formation services please contact us.
We look forward to working with you soon,
Managing Members Robert A. Green, CPA and Darren L. Neuschwander, CPA