Posted by Randy (SD) on March 30, 2005 at 10:27:44:
I know you posted this the other day, and only got one response. Considering the main emphasis of this board is regarding real estate purchases, it’s probably not your best source for this kind of information. Strictly on the subject of forming a corporation for investment purposes, and considering the “double taxation” that often occurs in a corporation I doubt this is your best approach. I fail to see any benefit in holding stocks in a corporation as opposed to your name personally, there is no liability other than loss of capital and income taxes on gains both of which are possible even in a corporate environment. I can think of two possible sources where you may get additional information,
I am thinking of opening a brokerage account (IN THE NAME OF MY CORPORATION) to buy stocks with. Does anyone here own stocks in the name of their corporation. Any particular advantage to this? Your response will be apprecaited…thanks
Re: Buying Stocks in my Corporation’s name - Posted by Mary in CA
Posted by Mary in CA on March 31, 2005 at 12:43:26:
I’ve had stock in my corporation, though don’t at the moment. I used it for holding cash vs low interest on the cash. (a 4% dividend while money’s sitting is better than 2% interest).
There can also be advantages to it . . . . don’t remember whether it’s all corporations or just S corporations . . . so be sure to check with accountant . . . but there is a lower tax rate on dividends for one of them. Or maybe it was lower tax rate on preferred dividends?
Don’t remember, but yes it’s possible.
But I wouldn’t form a corporation just to invest in stocks, if that was what you were planning.