Setting up a Dellaware corporation to do my trading

Discussion in 'Professional Trading' started by Daal, Apr 20, 2007.

  1. Daal


    I just found out some nasty tax laws in my country so I won't be able to do my own trading. I'm thinking of setting up a dellware corporation and doing the trade through an entity and paying myself a salary. At the same time I do not plan to reside in the US so I would be exempt from taxes. Is this idea viable?
  2. I wouldn't be too quick to jump to Delaware, without doing your homework. The states that have been havens are starting to come under pressure from others in the USA to be more forthcoming on corporate information.
    Besides, what makes you think you can pay yourself a salary and avoid the nasty tax laws in your country? There is increasing sharing of info these days internationally, and If they find you out, they may hang you upside down in a prison for a number of years for tax evasion. lol
  3. Surdo


    Monaco has much better weather.

    el surdo
  4. Daal


    I would taxed on the salary but would be able to retain a lot of earnings allowing it to compound better. I'm not interested on tax evasion but setting sort of mini hedge fund(no clients). I dont have a choice here guys, my government doenst allow somebody to deduct capital losses against capital gains on foreign markets if you can believe this
  5. No, this is not viable, and certainly not legal (I'm not a lawyer, but this just doesn't seem do-able).


    (Personal opinion, not legal advice from Bright Trading or any of it's entities)
  6. You should consult with a CPA in your country for advice.
  7. Daal


    I believe your wrong.
    Ok so if I find a stock selling for $1m on pink sheets and buy it up(liquidity problems aside). And start dictating that the business should do(I'm the owner after all) to
    make it grow(through buying and selling things like real estate) and pay myself part of the earnings(exempt from taxes in the US since I'm not citizen or resident, but liable to taxes in Brazil) while paying corporate federal income tax(exempt from state income taxes in nevada) with the company that would qualify me as a criminal?Thats basically what I would be doing but instead it would be a offshelf nevada/delaware corp or LLC that someone wants to sell
  8. Daal


    I don't think this is a big deal. As far as I know nothing prevented george soros from creating a company in curacao calling himself 'chairman' and doing his trading from there exempt from taxes while the money is there
  9. Pay your dues like a man you tight assed mongoloid.
  10. You need to do a lot of homework on your basic premise. First off, if you purchased more than 7% of any publically traded company, you must file with the SEC. You cannot simply "be the owner" simply buy purchasing shares, and you certainly cannot just make yourself the "decision maker" - much less start paying yourself a salary, etc.

    I suggest you study for the most basic of securities exams, the Series 7, and then you will likely be able to come up with perfectly legal ways of participating in the corporate ownership of listed companies, without risking getting involved in suspect activities.

    Keep it all simple, figure out how to pay the least amount of burdensome taxes, and put your mind to good, positive uses... then enjoy the rewards of good business practices.

    The advice above, to consult a GOOD lawyer and accountant, is sound advice.

    All the best,

    #10     Apr 21, 2007