Have Inquiries About Forming An Llc

[darce]

Two enterprise partners and myself are beginning an investment firm but I have some inquiries as to the very very best way to go about it.  I have study a lot of articles about various techniques of setting up a company but I haven't identified something that bargains straight with our predicament.  We will not have an office or any employees and will be undertaking all of our investing on the web (stocks, selections, and foreign currency).  My concerns are about taxation and how to handle taxes in the ideal way feasible.
I have noticed all of the articles touting Nevada as the greatest "tax haven" for organizations, is this correct?  We reside in Texas and have a DBA in our state, but would we require to file a DBA in Nevada if we make a selection to type our LLC there?  I want to make constructive we invest our suitable taxes but want to uncover the very best and most efficient way to do this that advantages my partners and me.
Any assistance would be tremendously appreciated. 

[walt18]

No, we'll only be investing our own money

[talbot]

Are you and your close friends investing your individual funds or will you be investing with other people's cash? Soliciting other people's contributions?
If your private income, will the 3 of you be creating the choices collectively or will just one particular distinct of you make the options even even though the other individuals place up cash.
Will the 3 of you be pooling your funds into any 1 investment account?
 

[liang87]

sigmanu135:
I had read by indicates of a quantity of these discussions but the result in I posted was that none of them straight related to our scenario.  I am not even sure an LLC is the greatest course of action for us which when once again is the result in I posted.  We would not be conducting company in the typical sense (on the internet investing), so my question is much more connected to the taxation side.

Please answer my earlier query.  If you are investing other people's money, you have numerous other concerns to do in addition to figuring out the quite very best tax selection.

[abran]

You have quite a few concerns and taxation is just one particular. Whilst we have an superb duty lawyer who responds right here the factor is you are going to require specific guidance for your scenario which web site guidelines forbid.   You and your prospective partners would be smart to commit a couple of hundred bucks and seek advice from properly a tax and organization attorney before starting this enterprise.  Inability to do this may well be FAR more expensive in the future if you expertise trouble with federal and state tax concerns.

[Derrin]

We will simply be trading our very own money.  My partners and myself will be combining our money into one investment account.  We will have one person make the choices and others will simply put up money.  My question/problem is when we make a profit (preferably) and withdraw money from our investment bill to split between the partners, what's the best method to set this up so far as taxes.

[Lynne]

I'd go through numerous these conversations however the reason I published was that none of them immediately related to the situation.  i'm-not actually guaranteed an LLC is the greatest strategy for all of us which again may be the reason I posted.  We would not be doing business within the regular perception (online investing), therefore my issue is more related to the tax side.

[Travion]

Are you likely to be investing other people's income?  If that's the case, there's Lots OF other issues you need certainly to do.  There are several actions to be always a Registered Investment Advisor -- both to the company level and individually.  There are national laws about this, and there are state laws (that may differ by state).

[fitche]

sigmanu135:
We will simply be trading our very own money.  Our partners and myself will be combining our money into one investment account.  We will have one individual make the choices and others will simply put up money.  Our issue/problem is when we make a profit (ideally) and withdraw money from our investment bill to separate between the partners, what's the best method to set this up so far as fees.

Well, I (individual viewpoint) do not see any motive to setup an LLC because the three of you'll just be coping with each other and I do not believe any type of business organization at your degree, other than the usual basic relationship, might lower your tax responsibility.
For relationship tax, read Government Book 541.
The only thing that bothers me concerning the agreement, whatever the kind of organization, is that only among you makes the investment choices. That is good, when you're making money. Nevertheless when your opportunities begin losing money, you're likely to have a genuine battle in your fingers.
I would recommend that you writeup a relationship contract that addresses both revenue and losing contingencies, particularly thos contingencies when one or more companions wish to take out their cash, or what is left of it.
You may want to do some googling about "investment groups" (that is what you'll have - despite only 3 people). There might be test contracts online that you can use at your personal danger or you can have a lawyer draw one-up.