I've been successfully daytrading for about a year now and I am just now looking into trading under a business entity, if you have any knowledge or advice as to how to go about doing so and what type of corporation to start or sole proprietorship to start I would appreciate the comments....thanks
Are you trading equities or futures. do you have other income. do you have alot of assets to protect. tell us a little more.
I am 19 years old, live in CA. Its taken me 2 years to come up with a trading stategy that consistently works. I have no assets to protect other than my trading capital. I am trading stocks. I presently working on my business degree. I have other part time jobs to pay my bills. I am in no hurry to start a corp., I would like to be prudent in gathering info. to avoid as many mistakes as possible....thanks for the replies again.
at this point, don't start any entity. just do a sole ownership. save yourself the time and the money. the cost of the entity, the annual fees. there not many advantages left for an entity. used to be that the only way to have your health insurance deducted was through a c corp but you can now even deduct health ins. in a sole prop. there is one advantage left of an entity and that is you can set up retirement accounts IF you pay yourself a wage and pay SS etc.. in a sole prop. you cant do that because your trading income is not earned income but cap gains. But in summary, i'd stay a sole owner.
Rydawg2003, check the following posts, very informative IMHO. http://www.elitetrader.com/vb/showthread.php?s=&threadid=26648 http://www.elitetrader.com/vb/showthread.php?s=&threadid=3387 Good luck in trading.
so if i set up a sole propr., can i have all the tax write-offs that are enjoyed with the LLC? and thanks for the links and info!