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Reply with quote | #1 |
Is an LLC an appropriate entity to hold solely portfolio assets (stocks, bonds, options, mutual funds) if there is no ''real'' business activity or rental income? Is there a better entity for this? I''m looking for personal liability asset protection and minimizing taxation during generational transfers of family wealth, but don''t want a significant increase in tax paperwork or double-taxation. I live in a state (WA) with no personal income tax, but which does have corporate/LLC taxation.. Can I hold portfolio assets in an out-of-state LLC and collect capital gains and other passive income without having to register to do business in my State of residence? Also, does giving money earned from my ''day job'' to my LLC for portfolio investment constitute a ''gift'' subject to gift tax rules, or does transferring personal assets into an LLC you control have no particular tax implications? |
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Reply with quote | #2 |
An LLC in Wyoming is a great vehicle for portfolio assets because of the charging order rule. In a Wyoming LLC your assets will be protected from your personal liabilities. If you are not concerned about your personal liability exposure than there is no need to put the assets in an entity as stocks, bonds, etc. do not generate liability exposure. You can hold the assets in an out of state LLC without having to register to do business in Washington. Also, giving money into your own wholly owned LLC does not have any tax implications on its own. Always check with your accountant regarding these and other tax matters. |
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