Discussion in 'Professional Trading' started by tortoise, Aug 27, 2012.
1) trading account through LLC
2) LLC owned by irrevocable trust.
If you are an independent trader just trading your own money, against whom do you need to protect your assets?
Typically if you are not accepting OPM, making money from trading is equivalent to making money from a regular job as far as liability etc is concerned. Why and how are your assets endangered in the first place. Am I missing something obvious here?
It's also an awfully litigious society. What do folks like Soros and Buffett do so they're not targets for adventuresome contingency lawyers?
---2) LLC owned by irrevocable trust.----
No one else has any thoughts about this?
Is that because:
A) I'm just a shell-shocked paranoic?
B) Because not many people here have much in the way of assets to protect?
i trade thru LLC. partially to write off the expenses,partially for 'asset protection'.
b)-possible. based on IB's bug thread-it does feels like i'm only one who trade thru IB . i mean-actively trade.
grab some books on amazon about asset protection. to be honest-there is no bullet proof scheme. LLC is basic,first step. might work,might not.
I have traded through an 2 member LLC for tax purposes. Liability protection requires that you keep assets separate, no co-mingling. As soon as I started using my personal credit card for the LLC purchases, I believe my liability protection eroded. I am not really too concerned about it as I was just trading our money.
If I were really concerned about lawsuits I would get an umbrella personal protection policy. 1 mil doesn't cost much to add to your existing homeowner's.
Make your tens of millions, get on a plane and move off to an Island or some exotic Asian country. Hire tens of young ladies for house-help and live a lavish life. And no one will be able to touch your assets.
Separate names with a comma.