Hello guys, so I want to trade Forex under a LLC or just that the witdrawals are going to be trough the LLC bank account, but I am not sure how it work. Do I need an brokerage account for the LLC itself or its just enough when I have an account on my name and the money goes then on the LLC bank account? I will be very grateful for your help.
The trading accounts will have to be in the LLC's name, its not advisable to deposit funds from your personal account because there are anti laundering rules which the brokers have to comply with and they might refuse to deposit those funds to your LLC's account. Perhaps the only exemption would be when you add funds to the account using a personal credit card, but then the LLC has to reimburse you for that particular credit card expense. Also, if you use a credit card, some brokers may charge a fee for the transaction and if you later decide to withdraw those funds there are rules which say that withdrawn funds have to go back to the account they came from and there could be complications as the credit card is not in the LLC's name.
Ok I see, thank you very much, but maybe one more inquiry...so if the funds are going to be added to the brokerage account by the LLC credit card, and afterwards withdrawn with the same credit card of the LLC, but the account is in my personal name...is this way still compliant? If so is then the tax duty fully on the LLC?
Since the brokerage account belongs to the LLC, the LLC will be responsible for the filing and any taxes. It is good practice not to mix personal funds and company funds. If you are a company director, you can withdraw your director fees from the LLC bank account but don't mix trading profits with personal funds. Clean records will make it easy to do your filling. As you know there are certain costs involved in running an LLC and I don't know the current rules in USA but you might also be required to get and maintain an LEI number which means registration and an annual fee. (LEI= Legal Entity Identifier) Your broker will tell you what paperwork they need when you apply to open a trading account.