Ask an AI Accountant

A free tool by

Question
I trade stock options making $200k per year. If I incorporate into an llc, what would my taxes look like?
AI accountant’s answer:
If you incorporate your stock options trading business into an LLC, your taxes may look different depending on how the LLC is structured and taxed. By default, a single-member LLC is treated as a disregarded entity for tax purposes, and the income and expenses related to the trading activities will be reported on your personal income tax return (Form 1040) using Schedule C, Profit or Loss from Business. However, you can elect for the LLC to be taxed as a corporation or an S corporation by filing the appropriate forms with the IRS. If the LLC is taxed as a corporation, it will pay taxes on its corporate profits at the federal corporate tax rate, currently 21%. Profits distributed to you as dividends will be taxed again on your personal tax return at the qualified dividend tax rate. If the LLC is taxed as an S corporation, the income, deductions, credits, and other items will flow through to your personal tax return, and you'll pay tax on your share of the S corporation's income at your individual tax rate. S corporation shareholders can also potentially avoid self-employment taxes on a portion of their income if they receive both a reasonable salary and distributions from the company, as only the salary portion is subject to payroll taxes. It's important to note that the tax treatment of trading stock options can be complex, and your specific situation may warrant additional considerations, such as the treatment of short-term vs. long-term capital gains and the potential application of trader tax status. Because of this complexity, it's a good idea to work with a tax professional who can help you understand the implications and choose the best tax structure for your business.
Not Correct.
Icon check
Looks good

Keeper’s AI Accountant

This AI accountant is powered by GPT-4, but has up-to-date knowledge of tax law. It’s been trained on federal and state tax updates for 2023. With credentialed tax professionals fact-checking its responses, it applies IRS rules to real-world situations.

Find write-offs.
File taxes.

Keeper helps independent contractors and freelancers discover tax deductions and file taxes.

Get started

Ask an AI Accountant

A free tool by

Question
This is some text inside of a div block.
AI accountant’s answer:

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Comment from reviewer
This is some text inside of a div block.

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Not Correct.
Icon check
Looks good

Keeper’s AI Accountant

This AI accountant is powered by GPT-4, but has up-to-date knowledge of tax law. It’s been trained on federal and state tax updates for 2023. With credentialed tax professionals fact-checking its responses, it applies IRS rules to real-world situations.

Find write-offs.
File taxes.

Keeper helps independent contractors and freelancers discover tax deductions and file taxes.

Get started