I need advice as to what would be the best-perceived corporate structure for a gambling entity: sole person LLC or S Corporation. I am a sports bettor; I live in Las Vegas, NV. I only bet on NBA games, thus the months I make money are November thru April. I make upwards of high six figures; however this year, I’m looking to make seven figures. I have not declared myself as a professional yet as I still need to weight the pro’s/con’s of doing so. (Going pro seems to have the obvious advantages of writing off expenses etc.), However, everything I’ve read regarding the IRS and gambling seems to be a nightmare.
This is my sole occupation, I quit my day job a year ago to focus on sports betting and made more money in 6 months than in the past 15 years of my life, so naturally, I won’t ever go back to working for someone else.
I did not file taxes on last season winnings as I’ve received conflicting advice (particularly regarding self-employment taxes). I have all my documentation to support my winnings should I file as a professional gambler.
I’m not trying to avoid paying taxes, I just don’t want my tax bill to eat up all my winnings due to not being fully aware of tax strategies to someone in my position.