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Registered User Joined: 10/27/2006 Posts: 11
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What form of business do you guys use for trading? What would be a good choice for a short term equity trading business / not investor/ considering business expenses, taxation,asset protection ,etc? Regards , Dezo
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Registered User Joined: 10/7/2004 Posts: 2,181
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tdezo; There are many considerations in the answer to your question; far too many for the scope of this forum. I run as a home business. You may or may not be able to do so legally. You can Google for mark-to-market and you'll find plenty of reading info. Also, here are some sites for you to research: (www assumed)
(external links removed by moderator)
All of these have an agenda, they want to sell you something! So read with a grain of salt. There are no real clear answers, corp vs LLC vs s-corp; mark-to-market or not; etc. It's much like trading, there isn't any one way to do it right. But with some research, you can gain many benefits ie writing off your healthcare premiums, all trading expenses, travel expenses in many cases, home office expenses, etc.
DO NOT take this as business advice, I'm just pointing out that it can be done with many very nice benefits. But not everyone who trades frequently qualifies. Do your homework.
Glad to answer any specifics if I can but your greatest benefit will be to start researching the sites I've suggested.
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Registered User Joined: 10/27/2006 Posts: 11
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Many Thanks tobydad . You're absolutely right. We have to find our own ways, no cookie cutter here , just like trading. Good trading , tdezo
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Registered User Joined: 10/7/2004 Posts: 2,181
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sorry tdezo; I had posted some useful links but forgot that that practice is forbidden here. Anyway, you should look for some of the websites that deal with daytradertax and have a dot com at the end. Or there are others that work with the issues of TradersAccounting.
Some of these groups that you'll find by utilizing the search engine of your choice will do a free report for you.
Don't take the advice of the everyday CPA / tax accountant. They are not specialized and do not understand the issues of frequent trading.
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