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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. |
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There is no answer at this time. |
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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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