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Posted by Igor Chudov on June 6, 2009, 2:18 pm
I have a "one man corporation" that is organized as an S-Corp.
I have some surplus of funds, due to not having that many
expenses. Among other possibilities, such as paying myself more or
buying more tax deductible stuff, I am considering opening a
corporation owned mutual fund account.
I would like to hear any opinions as to the advantages and
disadvantages of a corporation owning mutual funds, as opposed to
personal ownership by the sole stockholder of the corporation.
i
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Posted by Igor Chudov on June 6, 2009, 3:14 pm
> I would like to hear any opinions as to the advantages and
> disadvantages of a corporation owning mutual funds, as opposed to
> personal ownership by the sole stockholder of the corporation.
Let me also clarify, that one of the reasons for keepiong money inside
the corp, may be that I would want to make an investment later. For
example, buying a warehouse or a rental apartment, etc. This might
save me some on taxes. The question is, would having extra money
attract more unwanted IRS attention.
i
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Posted by John A. Weeks III on June 6, 2009, 3:16 pm
> I have a "one man corporation" that is organized as an S-Corp.
>
> I have some surplus of funds, due to not having that many
> expenses. Among other possibilities, such as paying myself more or
> buying more tax deductible stuff, I am considering opening a
> corporation owned mutual fund account.
>
> I would like to hear any opinions as to the advantages and
> disadvantages of a corporation owning mutual funds, as opposed to
> personal ownership by the sole stockholder of the corporation.
Are you able to shelter any of the profits? If you let it
build up in the corporate name, then take the distributions,
you end up paying taxes on the profits. If you take the
distribution and put it into a retirement plan, you may be able
to avoid paying taxes on some or all of it, and also let it
grow tax free or tax deferred.
-john-
--
======================================================================
John A. Weeks III 612-720-2854 john@johnweeks.com
Newave Communications http://www.johnweeks.com
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Posted by Igor Chudov on June 6, 2009, 3:49 pm
> Are you able to shelter any of the profits? If you let it
> build up in the corporate name, then take the distributions,
> you end up paying taxes on the profits. If you take the
> distribution and put it into a retirement plan, you may be able
> to avoid paying taxes on some or all of it, and also let it
> grow tax free or tax deferred.
No, I already am maxed out in my work 401k and personal IRA, so is my
spouse, and I do not believe that I can shelter anything. This is an S
corp though, so I would own any taxes on any income or gains from the
investment, the same way as I would if I owned the money in a personal
account.
I used to the practice of not leaving too much money in the corp
accounts, but perhaps it is a wrong practice.
i
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Posted by Douglas Johnson on June 6, 2009, 7:42 pm
>
>No, I already am maxed out in my work 401k and personal IRA, so is my
>spouse, and I do not believe that I can shelter anything. This is an S
>corp though, so I would own any taxes on any income or gains from the
>investment, the same way as I would if I owned the money in a personal
>account.
Look into a SEP IRA.
-- Doug
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