Legal structure for Canadian day trader with 1 million income a year?

[Overnight]

What is the best legal structure for a Canadian day trader with 1 million income a year? Any firms can help to evaluate the situation and set up the entities?

Hockey.

 

[toc]

Move to cayman islands

Am not sure about Canada, but US can avoid taxes by moving to off shore tax havens and even trading from accounts based there. Canada rules might be more conservative with time limits, again not sure, read this long time ago only.

 

[nooby_mcnoob]

Am not sure about Canada, but US can avoid taxes by moving to off shore tax havens and even trading from accounts based there. Canada rules might be more conservative with time limits, again not sure, read this long time ago only.

Right. You trade for a company in the Caymans from your home office and you think the IRS is not going to come after you eventually... Get a good tax lawyer, not a corporate accountant.

 

[canoe]

yeah for stuff like this, you don't wanna go to your neighborhood accountant who knows diddly squat. hire a prominent law firm although that could cost you tens of thousands if not more, so not quite worth it if you're at $1mil/year.

 

[newwurldmn]

Spend 10k of your million dollars and get a proper cpa firm. They may save you a 100K/year.

 

[3acor]

Right. You trade for a company in the Caymans from your home office and you think the IRS is not going to come after you eventually... Get a good tax lawyer, not a corporate accountant.

If you a U.S. citizen and want to trade offshore to avoid taxes, you need to get rid of your citizenship otherwise you wont escape the taxes.

 

[nooby_mcnoob]

Note that you can often strike deals with the IRS on the DL to reduce pain on both sides.

 

[birdman]

What is the best legal structure for a Canadian day trader with 1 million income a year? Any firms can help to evaluate the situation and set up the entities?

Hey Tony - you might try the 45 minute consultation here https://greentradertax.com/store/services/consulting-services/ Cost is $250 and is geared towards USA clients but the company has a stellar reputation. I would expect them to possibly have some knowledge of international laws as well. It's probably a good starting point.

I'm unsure of how much complete info they will have for Canada based traders, but this page https://greentradertax.com/trader-tax-center/international-tax-matters/ indicates that they have some knowledge on such matters.

 

[wrbtrader]

For tax purposes. Well, charging a tax rate at 50% on a million income is definitely the worst scenario. Reading the forums now and people suggests to set up corporations, and it seems that tax can be deferred in this way like RRSP.

You need a financial advisor working with your tax accountant as in they talk to each other about your specific needs. To get the ball rolling...setup a meeting for you three to sit down and discuss a plan together.

wrbtrader

 

[cruisecontrol]

I think what you can do is, set up a corporation in a tax haven such as cayman, estonia, ireland or hungary, hire some locals, rent an actual physical office so that it's all legit. A P.O. box only won't cut it these days as the CRA will pierce the corporate structure and tax you as if you were still in Canada. Obviously, consult actual expert advice before doing this, but that's what I came up with after researching this a bit.