Legal Question in Business Law in Maryland
Buy Stocks through Corp
Is there any advantage (tax-wise) of buy shares of publicly traded companies through an LLC or C Corp? For example i would like to buy shares of Dell through an LLC I own.
1 Answer from Attorneys
Re: Buy Stocks through Corp
A C-corporation will have to pay taxes on the gains in accordance with tax code. The recipient of any profit from the C-corp will also pay taxes. Thus a C-Corp will involve additional taxes.
An LLC's profits, if any, will pass through the LLC and be taxed to the recipient.
A C-Corp requires more formality and has additional requirements that an LLC does not have. Both the LLC and C-corp have costs to set up and maintain the entity.
My basic question is why you are considering having the stock held in the name of a corporate entity rather than in your name. Also, you may want to consider a trust rather than a corporate entity.
You should speak to an attorney to ensure that your course of action is consistent with your objectives.
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