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  • Srmustangs

    I want to set up a LLC for DFS activities. What type of business should I categorize this as? Finance, entertainment, OTHER? Suggestions wanted. Thanks

  • sochoice

    • 2017 DraftKings FBWC Finalist

    • 2017 FanDuel WFFC Champion

    Talk to a lawyer. That way you’ll get all of your questions answered by an actual professional.

  • deaddogseye

    setting up an llc is super easy. when you say categorize it — for what purpose?

    If you are the sole member (ie stcockholder in effect) in most states you just file a simple 1 page statement of organization and you ae done. you can generally get the fom off the state corporate commission web site.

    also why do you want to set up an LLC for DFS? To play?

  • ocdobv

    What’s the benefit of setting up a LLC for DFS?

  • deaddogseye

    I was wondering that too.

  • djcory27

    @ocdobv said...

    What’s the benefit of setting up a LLC for DFS?

    Tax write-offs. Allows you to claim a space in your house as your home office. DFS subscription sites, premium cable/satellite sports packages, tickets to games that are used for “research” purposes…the list can go on and on in regards to what’s an expense related to running your own DFS business.

  • deaddogseye

    That is not correct. Conducting an activity through an LLC does not make something deductible that wouldn’t be deductible if you conduct it apart from an LLC — ie personally like we all play DFS

    The issue will be whether the underlying activity — in this case DFS – rises to the level of a business or is merely a hobby. This will determine deductibility. The LLC is completely irrelevant to that determination. It is not recognized as an entity for federal tax purposes. Its as if you are conducting the activity personally.

  • ocdobv

    @djcory27 said...

    Tax write-offs. Allows you to claim a space in your house as your home office. DFS subscription sites, premium cable/satellite sports packages, tickets to games that are used for “research” purposes…the list can go on and on in regards to what’s an expense related to running your own DFS business.

    I do all that without an LLC.

  • PJGuin23

    DFS Tax Guru

    No need for an LLC.

  • dtrain187

    Will DK or FD even allow an account in the name of an LLC? While an LLC can be single member, it could also have multiple members and I would see them taking issue with that.

  • deaddogseye

    I assume they would not. Legally your DFS user name would be a tradename maintained by the LLC and used by it in the course of its activity of playing DFS.

  • Roma315

    @ocdobv said...

    I do all that without an LLC.

    This, my account last did this without being a LLC.

  • PJGuin23

    DFS Tax Guru

    I will mention that IF one piece of tax reform gets through, there is a chance that an LLC could be needed to take advantage of what would be the 15% versus the often higher ordinary tax rate. Stay tuned for that as even I’m uncertain as to what Congress will do.

    As for now, I’m debating whether to use Corey Clement as a GPP dart this weekend and it’s likely Congress will ger nothing done.

  • deaddogseye

    @PJGuin23 said...

    I will mention that IF one piece of tax reform gets through, there is a chance that an LLC could be needed to take advantage of what would be the 15% versus the often higher ordinary tax rate. Stay tuned for that as even I’m uncertain as to what Congress will do.

    As for now, I’m debating whether to use Corey Clement as a GPP dart this weekend and it’s likely Congress will ger nothing done.

    I’m not sure what you are referring to but LLC are not taxed as corporations — they are disregarded for tax purposes so al profit or loss flows back to the owner(s) personal tax return. if you are suggesting that as part of a drop in the corporate tax rate they will make LLCs subject to corporate tax then that would amount to a massive tax increase on LLC owners (they would then be double taxe which is exactly what LLCs avoid now ) and effectively kill the use of LLCs for tax purposes. I guess anything can happen but this is not a part of any of the tax reform proposals ive seen and would have exactly the opposite effect of giving relief to small business.

    An LLC can always elect to be taxed as a corporation but that will still subject the owners to double taxation and there wouldn’t be any reason to do it for DFS

  • hendry

    CPA FIGHT!

  • Stewburtx8

    • 2012 FanDuel WFBC Finalist

    @deaddogseye said...

    I’m not sure what you are referring to but LLC are not taxed as corporations — they are disregarded for tax purposes so al profit or loss flows back to the owner(s) personal tax return. if you are suggesting that as part of a drop in the corporate tax rate they will make LLCs subject to corporate tax then that would amount to a massive tax increase on LLC owners (they would then be double taxe which is exactly what LLCs avoid now ) and effectively kill the use of LLCs for tax purposes. I guess anything can happen but this is not a part of any of the tax reform proposals ive seen and would have exactly the opposite effect of giving relief to small business.

    An LLC can always elect to be taxed as a corporation but that will still subject the owners to double taxation and there wouldn’t be any reason to do it for DFS

    This is what he is referring to (no one would be double taxed): http://money.cnn.com/2017/04/25/news/economy/trump-tax-rate-cut-businesses/index.html

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