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Can I take advantage of a low tax state through a corp?

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Alpha13

Member
What is the name of your state? California

Hi,

I'm a stock trader who lives in CA. If I open a corporation in neighboring Nevada, which has no state tax, will I not have to pay any state taxes on my earnings assuming it comes from accounts connected to my Nevada company?

Thanks
 


LdiJ

Senior Member
What is the name of your state? California

Hi,

I'm a stock trader who lives in CA. If I open a corporation in neighboring Nevada, which has no state tax, will I not have to pay any state taxes on my earnings assuming it comes from accounts connected to my Nevada company?

Thanks
Nope, that won't work for you. Even if you could somehow finagle it, if you are a C-corp you will get hit with double taxation on the federal side, and if you are an S-corp you will have to pay CA tax anyway.
 

Alpha13

Member
Are there other options that may work, say for example an LLC or some other kind of partnership?

Thanks
 

irsos

Member
Corporate Capital Gaind

Corporations are taxed at regular corporate tax rates on long-term capital gains.
 

LdiJ

Senior Member
Are there other options that may work, say for example an LLC or some other kind of partnership?

Thanks
Every type of entity other than a C-corp or an LLC electing to file as a C-corp has pass through income. Pass through income would definitely cause you to pay CA income taxes on the income.

A C-corp or an LLC filing as a C-corp would cause double taxation.

You need to simply accept the fact that it won't work. Now, if you wanted to maintain your primary residence in NV that would be a different story.
 

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