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Securities Investments thru LLC?


I've created an LLC to do some web development work for very small companies and invest in some real estate. Is it possible for me to invest in the stock market thru the LLC (instead of thru myself as an individual). 1. Is this possible / legal? 2. What are the benefits of going thru my LLC vs. just investing as an individual - taxes, expense deductions, asset protection, etc?

I am the sole owner of the LLC.

1. You can do any legal business activity thru your LLC. Therefore the answer to your first question is YES.

2. The reasons you set up the LLC for your other business activities are all still relevant for your Securities Investment business.

3. The only thing you may want to consider however is whether the LLC with you as a single Member really does afford you any protection as far as liability/asset protection is concerned. I do not believe that a single Member LLC is any different from an S-corp or sole proprietorship as far as liability and asset protection is concerned. The corporate veil of a single person LLC is easily pierced in a court. However, for divorce/alimony/child support/garnishment etc an LLC will work until it is discovered that you are the sole Member and then the accounts can be attached/frozen etc. So keep it secret or take on another Member or two.

can you invest as an LLC? Yes you can...

tax consequenses: If you own more than 2% of the LLC and materially participate in it, you may be required to pay payroll taxes when you withdraw your profits.

If was a hard C corp may be able to do some dividend exclusion but otherwise no reason at all to buy via LLC. Don't overthink/plan.

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