Can someone explain as to what are LLC (Limited Liability Company); EIN (Employer ID Numbers) and JBO? How are they related to trading?
An LLC provide the same liability protection and anonymity as a corporation but are easier to maintain and not subject to Corp taxes. EIN is a federal tax number that's required for any company.
It really depends on whether you're planning on staying as simply retail type traders. Check Traders Accounting in Phoenix. They can help you with retail details. Don
DISCLAIMER: I AM NOT A TAX LAWYER, AN AMERICAN CITIZEN, OR SOMEONE WITH ANY LEVEL OF SYMPATHY TOWARDS THE 'AMERICAN SYSTEM'. I DO NOT LIVE, WORK, FUCK, OR ANYTHING IN THE U.S., I HAVE ABSOLUTELY NO KNOWLEDGE OF WHAT AMERICAN LAWS AND EFFING TAX REGULATIONS REQUIRE YOU TO DO, NOR SHOULD I HAVE ANY EXPERIENCE IN THE AFORE MENTIONED. bathrobe, have you looked into creating an LLC outside the US? An obvious advantage would be much, much, much lower taxes, and vastly increased privacy, thus higher levels of asset security. Seems like something obvious (to me) to consider. DISCLAIMER: I AM NOT A TAX LAWYER, AN AMERICAN CITIZEN, OR SOMEONE WITH ANY LEVEL OF SYMPATHY TOWARDS THE 'AMERICAN SYSTEM'. I DO NOT LIVE, WORK, FUCK, OR ANYTHING IN THE U.S., I HAVE ABSOLUTELY NO KNOWLEDGE OF WHAT AMERICAN LAWS AND EFFING TAX REGULATIONS REQUIRE YOU TO DO, NOR SHOULD I HAVE ANY EXPERIENCE IN THE AFORE MENTIONED.
Joint Back Office. Like we have a JBO with Goldman Sachs, so they do all the accounting etc. for us. Don
Don one of our JBO's is with Goldman, I am sure you have your own people check their work, so this may be moot. I highly suggest you double check all they do. Same with any JBO you may have elsewhere too.
Thanks, but we double check everything, and have since 1978, LOL. And, I agree that it's necessary! I really don't think anything is intentional, but with so much going on with billions of shares trading, "stuff" hapens. Don
I set an LLC for trading. Advatages I see ... I will be desginating the accounting for the company an mark to market. From what I have read this will resolve some of the issues the IRS has with people running their trading profits and losses through their personal tax return. Using an LLC also helps with the issue of writing off losses (GULP!) if there are any and the issue of wash sales. Also traking profits and losses and documenting them, IMHO, is much easier if kept in a sperate business enity. The ability to have a seperate bank account, expenses, etc if that audit ever comes make me feel better. In New Mexico, where I live, setting up a LLC cost $50 and you are up in running. An LLC does not, in NM, require a board of directors, board meetings, board minutes, and profits and losses are run back into your own 1040. Currently business taxes are at 35% for most businesses so that is probably higher then what most people are paying personally ... but McCain is talking about reducing the business tax rate to 25%, if elected, so that might change the LLC vs small corp equation for some. For any business the other advantage of forming an LLC is libility protection. In this case, the issue of libility was not the important issue for me ... if I loose money I guess I can sue myself. The usual disclaimer ... I'm not a tax attorney Hope this helps with your decision ... CFMTrader