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bpj said:
Mate, take it easy. Do not worry too much about taxes.

As a foreign partner in a U.S. LLC trading futures your income is not "effectively connected income", hence there is not withholding tax and all your profits are paid to you gross.

You get Form 1065 from Helios and you use the numbers on it to:
1. file 1042-S - just file, you are not liable to any tax in the U.S.
2. file whatever tax return you need to file in your country of residence and pay all the tax on your income from Helios in that country.

Keep it simple - focus on trading, not paperwork.
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Form 1065 is what the LLC files. Trading members receive a Schedule K1.
You MAY be liable for tax if you withdrew profits and then proceeded to lose the account. For instance, say you had $2500 worth of allowed loss. You made $1000 profit and withdrew it. Then you proceeded to lose $2500. Your account is a net loss and thus the $1000 you withdrew should be ordinary income.
 
In any case, Helios does not apply any withholding tax which is the main point - all responsibility for tax lies with the trader as a foreign partner of the LLC
 
Ryan,

Oh wow...I had not looked at it like that...would Helios send a 1099 for 1K? and would the trader owe Helios $2,500.00 in that scenario that you posted (quoted below)?

ES

Earn2Trade-Ryan said:
Form 1065 is what the LLC files. Trading members receive a Schedule K1.
You MAY be liable for tax if you withdrew profits and then proceeded to lose the account. For instance, say you had $2500 worth of allowed loss. You made $1000 profit and withdrew it. Then you proceeded to lose $2500. Your account is a net loss and thus the $1000 you withdrew should be ordinary income.
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Hello Ryan,

Good morning.

I registered for Gaunlet Mini on 24th but started trading on 25th due to installation issues with Rithmic.

It took a day to get used to Rithmic interface and another day to figure out DOM trading. I guess, i have hit daily loss limit once, but it is due to my unfamiliarity with Rithmic's interface. By the time i am figuring out how to close the position, it already hit the daily loss limit.

I have reached the profit goal of $1,750 in three trading sessions i.e by 27th, but i did hit daily profit loss on 27th. I traded with 2 ES contracts and sometimes with only 1 ES contract.

Would i be eligible for funding if i continue with Gauntlet Mini and reach profit target(another $1,750) in the next 10 trading sessions without hitting daily loss limit? as i am now familiar with Rithmic interface and i can put bracket order to avoid hitting the daily limit?

Or, should i go for one more Gauntlet Mini by paying $25, as we are still in September?

Appreciate your response.

Thanks,
Giri
 
2pointsAweek said:
Hello Ryan,

Good morning.

I registered for Gaunlet Mini on 24th but started trading on 25th due to installation issues with Rithmic.

It took a day to get used to Rithmic interface and another day to figure out DOM trading. I guess, i have hit daily loss limit once, but it is due to my unfamiliarity with Rithmic's interface. By the time i am figuring out how to close the position, it already hit the daily loss limit.

I have reached the profit goal of $1,750 in three trading sessions i.e by 27th, but i did hit daily profit loss on 27th. I traded with 2 ES contracts and sometimes with only 1 ES contract.

Would i be eligible for funding if i continue with Gauntlet Mini and reach profit target(another $1,750) in the next 10 trading sessions without hitting daily loss limit? as i am now familiar with Rithmic interface and i can put bracket order to avoid hitting the daily limit?

Or, should i go for one more Gauntlet Mini by paying $25, as we are still in September?

Appreciate your response.

Thanks,
Giri
More...

Hey Giri, sorry to it took some time to get use to Rithmic's DOM. Most traders already have their own trading platform they are use to and those who don't, we always provide a simulator account to test things out on so as to try and not affect the evaluation account.

I looked up your chat with support and they did inform you of the need to reset. Inside of your dashboard you should see your daily loss limit failure and the reset button if you'd like to reset the account. Unfortunately this is what you'd need to do as the $25 offer is only good one time per customer.

Please reach back out to support if you have any questions and if you choose to reset, PLEASE take advantage of the simulator account to make sure you have things figured out before you continue trading.

Good luck!
 
Earn2Trade-Ryan said:
It’s not too difficult and really only needs to be done if you are profitable (which of course we all hope). The forms are easy but some people just don’t like dealing with it and elect for others to help. Helios is of course happy to ask their CPA any questions for their traders but if there is a unique situation the CPA is not qualified to answer, they may recommend the trader as a local tax advisor.

As to if others have the same requirement, my understanding is no because you’re treated as a contractor and not a partner, which may have other issues to consider.
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Thanks for the detailed answers, both to myself and others, Ryan. Although they were not tax advice, they were quite informative.

Honestly, for a non-US citizen + non-US resident it seems being a contractor is a lot more easier. It is my understanding that for an independent contractor one would only have to fill in the W-8BEN, which is pretty standard for anyone trading in US markets, and nothing else is needed in US.
All the rest (fill for tax return) is done locally, where one is much more comfortable with tax law, procedures or to seek any local guidance (and with a bit of luck, one even belongs to a country with a good tax treaty with US).
 
SumZero said:
Thanks for the detailed answers, both to myself and others, Ryan. Although they were not tax advice, they were quite informative.

Honestly, for a non-US citizen + non-US resident it seems being a contractor is a lot more easier. It is my understanding that for an independent contractor one would only have to fill in the W-8BEN, which is pretty standard for anyone trading in US markets, and nothing else is needed in US.
All the rest (fill for tax return) is done locally, where one is much more comfortable with tax law, procedures or to seek any local guidance (and with a bit of luck, one even belongs to a country with a good tax treaty with US).
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While it may seem easier, if you are managing assets for a US client (which the prop firm would be if you're a contractor), there may be regulatory registration requirements. Those are more expensive and a bigger hassle then this tax stuff.
 
Earn2Trade-Ryan said:
Hey Giri, sorry to it took some time to get use to Rithmic's DOM. Most traders already have their own trading platform they are use to and those who don't, we always provide a simulator account to test things out on so as to try and not affect the evaluation account.

I looked up your chat with support and they did inform you of the need to reset. Inside of your dashboard you should see your daily loss limit failure and the reset button if you'd like to reset the account. Unfortunately this is what you'd need to do as the $25 offer is only good one time per customer.

Please reach back out to support if you have any questions and if you choose to reset, PLEASE take advantage of the simulator account to make sure you have things figured out before you continue trading.

Good luck!
More...

Seems like luck is chasing me :)

After 3 days gap, Yesterday i subscribed to 50K Gauntlet Mini and received login details around midnight (i am from India). Today, after coming from office, loged into Rithmic, placed my first order (3 ES contracts) just 5mins before regular market open....my order got auto-liquidated after 2-3mins(at a loss of $225). While i am wondering what happened, my target of 4points crossed in next 2mins.

What i came to know is, i violated progression ladder rule :(

I should start 2 contracts but i didn't read this progression ladder rule. In 25K mini, i traded with 2 contracts, so i am in the assumption i can trade 4 contracts in 50K mini, but i chose to go with 3 contracts. But the fact is, i should trade only 2 contracts till i cross profit of $1500.

Didn't read the rule....paid the price :(

Giri
 
2pointsAweek said:
Seems like luck is chasing me :)

After 3 days gap, Yesterday i subscribed to 50K Gauntlet Mini and received login details around midnight (i am from India). Today, after coming from office, loged into Rithmic, placed my first order (3 ES contracts) just 5mins before regular market open....my order got auto-liquidated after 2-3mins(at a loss of $225). While i am wondering what happened, my target of 4points crossed in next 2mins.

What i came to know is, i violated progression ladder rule :(

I should start 2 contracts but i didn't read this progression ladder rule. In 25K mini, i traded with 2 contracts, so i am in the assumption i can trade 4 contracts in 50K mini, but i chose to go with 3 contracts. But the fact is, i should trade only 2 contracts till i cross profit of $1500.

Didn't read the rule....paid the price :(

Giri
More...
What kind of temperature is in India right now?
 
Today was NFP day

2pointsAweek said:
Seems like luck is chasing me :)

After 3 days gap, Yesterday i subscribed to 50K Gauntlet Mini and received login details around midnight (i am from India). Today, after coming from office, loged into Rithmic, placed my first order (3 ES contracts) just 5mins before regular market open....my order got auto-liquidated after 2-3mins(at a loss of $225). While i am wondering what happened, my target of 4points crossed in next 2mins.

What i came to know is, i violated progression ladder rule :(

I should start 2 contracts but i didn't read this progression ladder rule. In 25K mini, i traded with 2 contracts, so i am in the assumption i can trade 4 contracts in 50K mini, but i chose to go with 3 contracts. But the fact is, i should trade only 2 contracts till i cross profit of $1500.

Didn't read the rule....paid the price :(

Giri
More...
 
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