Picking the INCORRECT type of legal entity to do your crypto currency business could have a devastating impact on the taxes you pay in that activity. Similarly, if you do it the right way, it can have a huge benefit to you in your after-tax returns. Stay tuned and you will see how you can utilize correct business formation structure to maximize your after-tax crypto returns.
This is Kelly Coughlin, CPA and CEO of EverydayCPA. You saw in part 1 the three ways to generate profits and potentially taxes in the crypto currency market: 1) buy, hold and sell; 2) buy other goods and services or other currency; and 3) perform mathematical equations for a fee to build the blockchain.