I would suggest you talk to a lawyer/accountant at this point.
One who has a small experience with Bitcoin preferably.
Topic: Structuring a mining business (Read 250 times)
Thanks for the responses guys. Any idea what your effective tax rate is? I've heard the LLC model comes with some nasty self-employment taxes, is this something you've experienced?
LLC seconded. Was even able to get a business bank account through an established bank. So much easier to keep the cash flow separate.
My mine runs as an LLC. Haven't had any issues with it. The pass through deduction should apply to it, as far as my CPA has advised.
Within the United States, what is the best form (or chain) of limited liability entity to use for setting up a small scale mining business?
I'm leaning towards an LLC (to be taxed as a partnership), but with the new corporate tax rate of 21%, maybe it makes more sense to actually pay double tax on coins mined at the time of mining and then again when dividended out?
If you're familiar with business formation but need an update on tax treatment, check out https://bitcointalksearch.org/topic/taxes-mining-bitcoins-2312999
If I was any good with numbers I'd try and figure this out myself, but I'm hoping we got some experts here!
I'm leaning towards an LLC (to be taxed as a partnership), but with the new corporate tax rate of 21%, maybe it makes more sense to actually pay double tax on coins mined at the time of mining and then again when dividended out?
If you're familiar with business formation but need an update on tax treatment, check out https://bitcointalksearch.org/topic/taxes-mining-bitcoins-2312999
If I was any good with numbers I'd try and figure this out myself, but I'm hoping we got some experts here!
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