Hi There,

Thanks for reading. I have have a small business that is filed under an s-corp (CA). I own the entire co.

I'd like to get back into the stock market now, and I'm not sure if I should invest my personal funds or if I should invest through the company.

The Corp has more money than I do. , and I'd prefer to invest through the company.... But is that smart?

What in terms of taxes would be the smarter move.

Thanks so much.

Generally speaking, it is better to purchase stocks in your own name and not through the Corporation. As for the S Corporation, all the trades made would essentially flow to your personal tax returns and gains and losses would be reported on the K-1 on lines 7 and or line 8a.

So, it does not make any reportable difference, and there is no tax benefit to you! But, I would advise you that you can simply take a distribution from the S corporation and purchase the stocks under your own name. This would be the best strategy in my opinion!

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Thanks so much TaxGuru. This is a great resource.

Have a fantastic weekend.