DislikedAnd you do realize when you incorporate, your money is now your companies, locked up in the cayman islands. To get any of it, you have to pay yourself as an individual and guess what tax rate that is paid at.Ignored
However, it matters where the corporation has its home. It's true, for US citizens, even if you live overseas and have income you have to declare that to the IRS. (You can exclude the first ~$100k of foreign-earned income from US income tax, though.) It's perfectly legal for US citizens to form corporations in foreign countries. Income that those corporations earn is subject only to the tax laws of that country, which may be very friendly. The USA can not tax income earned by a foreign Corporation. (Mitt Romney knows about this, too.) You don't have to live in the country where "your" Corporation lives. Or ever even go there. But said Corporation can own assets anywhere in the world. The house or office building you live and work in, for instance. Or the yacht you entertain clients on.
Nothing to write off for a trading business? You fly to London to talk to some traders or prospective clients? Write it off. You go out to eat with somebody and talk about what the markets are doing? Write it off. You're too busy trading and you need a maid and a gardener to come over every day to keep the home office in good shape? Write it off.
There are lots of ways to cut down on your tax burden, whether your income is from trading or not. You have to learn to think like a businessman. How many multi-million dollar businesses are run as sole proprietorships? Few, because the tax advantages of incorporation are so obvious.
"If The Fool persists in his Folly he will become wise." - William Blake
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