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Q: Starting A Corporation ( No Answer,   1 Comment )
Question  
Subject: Starting A Corporation
Category: Business and Money > Small Businesses
Asked by: husker1-ga
List Price: $25.00
Posted: 15 Oct 2002 12:42 PDT
Expires: 14 Nov 2002 11:42 PST
Question ID: 76954
I trade stocks and options very often (400+ trades a year).  I want
make this a business, first trading only for myself; then eventually
trading and offering financial planning advice to others. What type of
corporation should I set-up?  What requirements (training or
certifications) are needed for me to trade and offer financial advice
for others?  I'm currently working on my certified financial planning
certificate.  I live in the state of Florida.
My reason for initially starting a company (trading only for myself)
is to be able to put away some pre-tax profit into a solo 401K.
Answer  
There is no answer at this time.

Comments  
Subject: Re: Starting A Corporation
From: taxmama-ga on 16 Oct 2002 06:12 PDT
 
Hi Husker,

While I don't have time to look up the SEC certifications
you will need to trade for others, here's a little tip.

If you are trading that much on your own account, here is an
excellent article about registering yourself as a trader for 
IRS purposes, without having to incorporate.
http://taxmama.com/Articles-Pro/traders.html

I'm not sure it will get you the 401(k) you want. It just might,
under the new solo-401(k) rules. But, most likely not, since the
trade income will be reported as short-term capital gains,
while all the expenses will be deductible as Schedule C business
expenses.  

But neither will incorporating. If you opened a corporation,
Your 401(k) contributions would be based on your WAGES, 
as in, formal payroll checks.

Just some thoughts...

Your TaxMama-ga

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