I am starting this thread in order to explore business aspects of trading forex for a living. Stuff like:
1) Forms of business
2) Taxation issues
3) Trading with other peoples' money
4) Team trading
5) Trading with employees
6) Etc, as in anything related...
Before I even began live trading I formed an S Corporation to cover any profits or losses I might incur. I have some profits, so far - woohoo! But I also have expenses (losses), like:
- at least $500 spent on trading-related books
- a nice new HP desktop pc, dedicated to trading only, $1500
- a 40" Samsung HDTV, serves as a monitor for the bitchin desktop (hey, I can get 6 nice-sized charts on there!), $925
- well, lets see, a reasonable fraction of the rent/utilites I pay for office space ($750/month total)
- There should be more - if there is a cool forex seminar this coming winter in Miami, or Bangkok, then I will not want to miss that...
I love write-offs.
The S-corp is a good way to go. If there are any profits left over after your (perfectly reasonable) business expenses then you can pay yourself a nice dividend & avoid the self-employment tax...I do need to find out more about the tax-related implications of trading income, though....
So, do any of you trade for a living? (I know you're out there!)
How do you deal with taxes? Do any of you trade in partnerships? Do any of you have employees? Who has the goods on the off-shore corporation route?
Have any of you started funds or other vehicles to trade for other people - with other peoples' money?
I would like to hear your stories.
1) Forms of business
2) Taxation issues
3) Trading with other peoples' money
4) Team trading
5) Trading with employees
6) Etc, as in anything related...
Before I even began live trading I formed an S Corporation to cover any profits or losses I might incur. I have some profits, so far - woohoo! But I also have expenses (losses), like:
- at least $500 spent on trading-related books
- a nice new HP desktop pc, dedicated to trading only, $1500
- a 40" Samsung HDTV, serves as a monitor for the bitchin desktop (hey, I can get 6 nice-sized charts on there!), $925
- well, lets see, a reasonable fraction of the rent/utilites I pay for office space ($750/month total)
- There should be more - if there is a cool forex seminar this coming winter in Miami, or Bangkok, then I will not want to miss that...
I love write-offs.
The S-corp is a good way to go. If there are any profits left over after your (perfectly reasonable) business expenses then you can pay yourself a nice dividend & avoid the self-employment tax...I do need to find out more about the tax-related implications of trading income, though....
So, do any of you trade for a living? (I know you're out there!)
How do you deal with taxes? Do any of you trade in partnerships? Do any of you have employees? Who has the goods on the off-shore corporation route?
Have any of you started funds or other vehicles to trade for other people - with other peoples' money?
I would like to hear your stories.
"If The Fool persists in his Folly he will become wise." - William Blake