How do I start a day trading company!

Weezer

You getting very good advice from some really great folks – so not to muddle things up – I’ll keep it short


Use Leagalzoom.com to set up your company (LLC)

It’ll be less than $1,500.00 depending on the state you set up the LLC in.

And Leagalzoom will walk you through the entire process – making it very “painless”.... Hardest part for me was finding a business name not already being used

Also - maybe get a couple of books on how to run a business (Not trading related, but strictly business)


Take Care

RN
 
I do not see the need for this at all.

You are "unemployed". You have cap gains that go on your tax return. No self-employment tax.

If you need retirement accounts, Roths have no upfront tax issues anyway - there is a "retirement" plan.

An S Corp (I had one) or LLC seems pretty much a waste of time, money and energy for you to trade on your own.

By the way, futures have a much better tax profile with the 60/40 treatment. And don't have some of the limiting rules stocks have.
 
TZ

I love Ya Man :)


Take Care

RN






Quote from TraderZones:

I do not see the need for this at all.

You are "unemployed". You have cap gains that go on your tax return. No self-employment tax.

If you need retirement accounts, Roths have no upfront tax issues anyway - there is a "retirement" plan.

An S Corp (I had one) or LLC seems pretty much a waste of time, money and energy for you to trade on your own.

By the way, futures have a much better tax profile with the 60/40 treatment. And don't have some of the limiting rules stocks have.
More...
 
I agree with you about futures but I need many more IQ points to win in futures, so far for this year Cap gain Taxes will be around 8k on 27k profit and 11k if Mark to Market is elected.
By starting a company and expensing 17k in office, payroll and health premium etc… taxes will drop to 3-4k. It sound moronic at first but you have consider the limited liability & benefits of a corp. over "unemployed" cap gain trader.
 
If you are a sole trader and not using margin, what do you benefit from limited liability? What kind of liability can you incur? Moreover, if you are the sole member of your company - don't you run the risk of your corporate veil being pierced anyway unless you are extremely careful with your accounting and actions to separate your professional and personal affairs?

I gotta agree with TZ here. What's the point?

Quote from weezer:

I agree with you about futures but I need many more IQ points to win in futures, so far for this year Cap gain Taxes will be around 8k on 27k profit and 11k if Mark to Market is elected.
By starting a company and expensing 17k in office, payroll and health premium etc… taxes will drop to 3-4k. It sound moronic at first but you have consider the limited liability & benefits of a corp. over "unemployed" cap gain trader.
More...
 
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If you are a sole trader and not using margin, what do you benefit from limited liability? What kind of liability can you incur? Moreover, if you are the sole member of your company - don't you run the risk of your corporate veil being pierced anyway unless you are extremely careful with your accounting and actions to separate your professional and personal affairs?

I gotta agree with TZ here. What's the point?

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How do improve on such company? Where do you take it next?
 
Improve in what sense? get different traders??

Quote from weezer:

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If you are a sole trader and not using margin, what do you benefit from limited liability? What kind of liability can you incur? Moreover, if you are the sole member of your company - don't you run the risk of your corporate veil being pierced anyway unless you are extremely careful with your accounting and actions to separate your professional and personal affairs?

I gotta agree with TZ here. What's the point?

#######################

How do improve on such company? Where do you take it next?
More...
 
Quote from weezer:

#######################

If you are a sole trader and not using margin, what do you benefit from limited liability? What kind of liability can you incur? Moreover, if you are the sole member of your company - don't you run the risk of your corporate veil being pierced anyway unless you are extremely careful with your accounting and actions to separate your professional and personal affairs?

I gotta agree with TZ here. What's the point?

#######################

How do improve on such company? Where do you take it next?
More...

If you are looking to hire traders that you can charge commission to for every trade they make, you will have to check out FINRA and get a clearing house such as goldman sachs. I think you should make at least a million dollar trading before even think about doing something like that. You've made 27k in 6 months and you made it during a time where if you just got in the market 6 months ago, everyone made money just by being long and holding. My returns have been greater in the last 6 months than in my entire history of trading and i think there are more than a few traders on here that have experienced the same. So until you have a million bucks from trading, dont think that you can consistently generate profits every week, just because you made some good returns this year. Good luck to you if you do, but 6 months of trading is not much of a track record. Come back at the end of the year and see if you are still up.
 
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