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Questions about running a Forex Trading Business?

Discussion in 'Forex Trading Systems and Strategies' started by Ian G., Mar 3, 2010.

  1. Ian G.

    Ian G. Recruit

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    Hello,

    I am needing information regarding to starting a Forex Trading Business. I have read many blogs about it and the only thing that I found was to trade as a Trader and not as an Inverstor for Tax Benefits. Also to run it as an LLC for those perks as well. The questions that I have, is it better to open a Forex account as an LLC or can you trade on an Individual account and still claim to work under your LLC? If anyone is Trading as an LLC and would be able to help me with my questions, it would be greatly appreciated!

    Thanks and many pips to you!

    Ian G.
     
  2. Crazypips

    Crazypips Recruit

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    I think one of he best way to learn more and check for some period Company. Trade on cents accounts and check for requotes and execution. And after month or two, just start to make a good deal. You should read news and monitor the movement on merket.;)
     
  3. Pharaoh

    Pharaoh Colonel

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    Running anything as a business can provide tax advantages. On the other hand, it also means going to all the effort to set up an LLC or other business structure, a lot more paperwork, and dealing with all the local, state, and federal taxes.

    As for whether the account needs to be opened in your company name to count as company income, you would want to double-check that with a tax professional.
     
  4. sitting_duck

    sitting_duck Recruit

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    Some of my friends interested in joining my account by making deposit in my account and share profits that will occur. It's quite simple, but there is problem in counting and sharing the profits.
    I've been thinking an idea to open individual accounts on behalf of my friends, seperated from my accounts, and trade the accounts as usual. Then, just share the profits.... if there is some....
     
  5. RahmanSL

    RahmanSL Major

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    Some of my friends interested in joining my account by making deposit in my account and share profits that will occur. It's quite simple, but there is problem in counting and sharing the profits”.

    What seems to be the problem in doing that?

    If the total amount of money comes to usd100, the one with usd5 gets 5%, usd10 gets 10%, usd60 gets 60%, and usd25 gets 25% of Shares & Profits (of course).
    If you trade in multiple individual accounts, you will have problem in placing/executing trades especially if you have more than 4 accounts to monitor at the same time.
    Imagine what will happen during volatile market movements and you have trouble opening/closing even a single platform. With 2 or more trading platforms suffering the same problem, all hell will break loose.
     
  6. RahmanSL

    RahmanSL Major

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    Running Forex trading as a business??
    Unless you are dealing with hundreds of thousands & millions, why bother?

    Just keep the withdrawal amount to just below the minimum amount that your government makes it mandatory to declare the source and you will be alright.
    In other words, stay below the "radar detector"!....unless, of course, you trade forex for a living and in this case you will have to declare your annual income in order to explain how you pay for that 10 acres mansion and chauffeur driven limo.
     

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