I don't really understand the black and white premise of the question (salary vs profit). Trader is the same as restauranteur, retail shop owner, or any other ownership-like or self-reliant descriptive. All are entrepreneurs. Entrepreneurs have one thing in common... They have an idea wanted to produce a desired result. It can be a hobby, it can be a parttime project. But for all cases, the desired result is not necessarily money-centric. My trading business is for-livelihood and for-profit. Income without profit margin is just a hobby. To each their own.
In my case, I control and trade through an S-Corp. The entity is a legitimate employer in my state, meaning workmens comp and unemployment insurance is paid based on all wages paid. I am paid wages with payroll taxes withheld and at year end I am issued a W-2 and a K-1. The K1 is (usually) considered unearned income by the IRS and is not subject to SS+medicare tax. W-2 income, fringe benefits, and K-1 financials are ongoingly engineered through-out the year from a tax standpoint. Since WC and UI is paid, those benefits are available to me (and any other employees) if so wanted.
My trading accounts are swept very regularly into locally accessible entity titled accounts. I do not accumulate or maintain sums more than is necessary for my type of trading in trading accounts.
I am a 10yr+ FT futures trader. My trading business is for-livelihood and for-profit. Income without profit margin is just a hobby. To each their own.
In my case, I control and trade through an S-Corp. The entity is a legitimate employer in my state, meaning workmens comp and unemployment insurance is paid based on all wages paid. I am paid wages with payroll taxes withheld and at year end I am issued a W-2 and a K-1. The K1 is (usually) considered unearned income by the IRS and is not subject to SS+medicare tax. W-2 income, fringe benefits, and K-1 financials are ongoingly engineered through-out the year from a tax standpoint. Since WC and UI is paid, those benefits are available to me (and any other employees) if so wanted.
My trading accounts are swept very regularly into locally accessible entity titled accounts. I do not accumulate or maintain sums more than is necessary for my type of trading in trading accounts.
I am a 10yr+ FT futures trader. My trading business is for-livelihood and for-profit. Income without profit margin is just a hobby. To each their own.
