Chad You Might Know The Answer To This One...

Do you know what the legalities are involving business investing funds in the stock market or hedge funds, etc?

Im looking to diversify our current business income and was considering investing 50k or so in the markets or funds of some type over the next few months and just wondered if there is anything i should be aware of prior to making the final choice whether to do this or not?

I know we can report the income on our balance sheet etc as investments but i wondered just how different investing was from a business standpoint in contrast to personal investing which both Gary and I already do?

Regards,

Lee

Well have you considered the options of using the money from your business to build tax free savings, medical accounts or IRAs? I would think that the tax advantages alone would immediately make it very attractive.

The latest issue of FUBAR Webmasters had a very good article from a accountant cum adult webmaster who detailed all kinds of useful ways to use your money, many with tax advantages.

I liked what he wrote. If you don't get that highly entertaining magazine, the writers byline is Richard Victor richard@401kseminar.com

Steve

This is really a complex question that doesn't lend itself well to a public board, because the right answer depends on some specific facts about your situation.

Hit me up on skype or ICQ and we can chat about it. :smoke:

BTW, I usually don't charge anyone for quick chats or emails where I don't have to research the question to find the right answer. I know lawyers that charge $50 for a 2 sentence email. I figure if it takes more time to log the information necessary to bill you than it takes to answer the question, it is not worth billing at all.

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Originally Posted by chadknowslaw

I know lawyers that charge $50 for a 2 sentence email. I figure if it takes more time to log the information necessary to bill you than it takes to answer the question, it is not worth billing at all.

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My brother, early in his career, was a newly minted partner at some prestigious LA-area firm. He was told that anytime he *thought* about a case, it was billable. If he was in the shower in the morning, thinking about a client's matter, it was billable. I think that was one of the reasons he left the firm and started his own.