Self employed full time traders

To those of you who have been trading full time for quite a while, I'm just curious if you claimed self employment or did you go as far as establishing a business name.

Maybe establish a business name where you trade under even if you don't have any employees to maybe get any tax advantage or establish a ground for future growth of the business to include hiring people and managing other people's money.

I know this question is better answered by an accountant (and I plan to hire one soon) but it would be great if anyone can chime in regarding this matter.

 

I did the business name. It adds seriousnesses to your trading career.

 

Apart from that; is there a tax advantage?

 

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You're a joke and so is your business. Please don't reply to this thread as you have nothing worthwhile to contribute anyways. I wanted to get the input of people who's been in this business a long time, not some guy who just got out of McDonald's University and trades from his dad's basement.

 

Before I started my hedge fund, I just filed my taxes under my name, but then again, I didn't have any expenses to write off whatsoever because I was trading from my college dorm room. Writing off expenses like office rent or even home office rent (can only be a tiny percentage of your total rent) is key so it's most probable that you should start a business

 

i do self employed.

i don't have clients - if i did (which i won't), i would DEFINITELY do as a business to protect against potential legal problems - and wife teaches / gets benefits, so that other angle is taken care of.

 

Yeah but he DID graduate Magna Cum French Fry

 

Don't tell me what to do buddy, go back in your hole you mute.

 

Like Tim somewhat mentioned, if you have anything you can write off like office supplies, computer then that could be an advantage that I do not believe a sole proprietor has. also remember, you will have trading losses from time to time so those could be written off as well.

 

wrong bnb. you need to learn your tax laws before talking. anything a corp can write off can be written off by a sole prop using a sch c outside a retirment plan or health ins. the upside is a sole prop pays no social security taxes which is a huge savings. also a mtm trader can write all his loses off not just the 3k. but one must be defined as a full time active trader first. do your homework and learn the trader tax laws