setting up (trading) business for yourself

[Reaver 10]

What is the best, most simple way to get yourself set up as a business, so you can account for trades, etc separately, as well as account for expenditures such as education and equipment such as computers, etc?

 

I was thinking LLC is best, but I wanted to ask in case someone had some input since I am not sure what to do!

 

Any input is appreciated.

[torero 10]

Hi reaver,

 

Check out this site. If you plan to trade fulltime or very active, you can declare to the IRS as trader. Here's a very good site for reading on tax and accounting biz:

 

Traders Accounting

 

Good luck!

[Reaver 10]

Thanks Torero I appreciate it man!

[Soultrader 12]

Hi Torero,

 

Do you know if they can help overseas traders as well?

[torero 10]

Yes. They do but it's not cheap. They charge 150$ an hour. If you were US residents and US citizen, things are easier as they know the routine already. When I mentioned it to them, they said they have to do research first (hence the rate), then they do the report (more payment).

 

But they are good from what I hear. I may use them but I'm still shopping around right now. I'll let you know once I have contracted the person and see how good he/she/they with overseas traders and pass along the info.

[Reaver 10]

I'm doing some looking around myself, if I see anything I'll let you know.

[Reaver 10]

Basically it looks like you just set up an LLC as a money management business and trade away, then worry about taxes based on p&l and whatever expenses you are allowed to deduct from your business.....am I on the right track?

[TimRacette 11]

The Tax Guide for Traders by Robert Green is the best book out there I've found.