I'm making money now what? | Forex Factory

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I'm making money now what?

  • #1
  • First Post: Jan 20, 2007 8:07pm Jan 20, 2007 8:07pm
I was wondering if anyone could suggest the best vehicle for going it alone once you are actually making money. I am leaning towards an L.L.C. but need more info. Like if I name my self as an investment L.L.C. or Crop. will I be regulated by Uncle Sam as to what I can do? If anyone has any answers or could point me in the right direction it would be most appreciated
"Opportunities multiply as they are seized."- Sun Tzu
  • #2
  • Jan 20, 2007 11:29pm Jan 20, 2007 11:29pm
Hi pairtrader,

In Japan, many people are leaning on investment companies.
Especially, foreign currency-denominated fund and multi currency MMF(Money Market Fund) are popular.
Although I was too careful to trade currency frequently, I am not leaning on investment companies. I am waiting for chance, looking at chart and fundamentals.

This picture is a Japanese investment trust's example.
Attached Image
Peace and Happiness through Prosperity (by Konosuke Matsushita)
  • #3
  • Jan 20, 2007 11:41pm Jan 20, 2007 11:41pm
Quoting fumafuma
Hi pairtrader,

In Japan, many people are leaning on investment companies.
Especially, foreign currency-denominated fund and multi currency MMF(Money Market Fund) are popular.
Although I was too careful to trade currency frequently, I am not leaning on investment companies. I am waiting for chance, looking at chart and fundamentals.

This picture is a Japanese investment trust's example.
Hi Fumafuma,
Thanks for your reply and Greetings from Las Vegas. When you say that people are leaning on the investment companies, do you mean that they are using them to invest in and/or with? Sorry I didn't understand the writting on the picture I haven't stuided my Kanji & Kana in a very long while.
"Opportunities multiply as they are seized."- Sun Tzu
  • #4
  • Jan 21, 2007 12:53am Jan 21, 2007 12:53am
  •  tesla
  • Joined Oct 2006 | Status: Friendly Neighborhood Programmer | 533 Posts
If I were you, there's no way I'd have enough confidence in any answer I received here on the boards to make any kind of decision. Spend the money and talk to a professional.
  • #5
  • Jan 21, 2007 2:05am Jan 21, 2007 2:05am
Quoting pairtrader
I was wondering if anyone could suggest the best vehicle for going it alone once you are actually making money. I am leaning towards an L.L.C. but need more info. Like if I name my self as an investment L.L.C. or Crop. will I be regulated by Uncle Sam as to what I can do? If anyone has any answers or could point me in the right direction it would be most appreciated
Start up an LLC whereas your only taxed once instead of twice unlike the C and S corporation structures. . Invest through that LLC and your only taxed when you take money out. If done correctly with the IRS 1256, your capital gains is taxed at 23%. This is the best avenue for you. Through the LLC you can deduct many expenses. An LLC only requires one other office holder whereas C and S require more than two. Also incorporate in the State of Nevada.

Tax info link to explain the 1256 rule: http://www.forex-day-trading.com/forex-taxes.htm
  • #6
  • Jan 21, 2007 5:26am Jan 21, 2007 5:26am
if i were you i'd go to Slovenia, in Europe where you can as an individual keep making money, and forex is not taxed.
come, come
(P.s: if u decide to come....got a job for me? :=) )
I might not know, I might not have the money, but remember, I have TIME!
  • #7
  • Jan 21, 2007 9:45am Jan 21, 2007 9:45am
This might interest you, especially since Vegas lives in..........well, Vegas:

http://www.forexfactory.com/showpost...93&postcount=1

Quoting pairtrader
I was wondering if anyone could suggest the best vehicle for going it alone once you are actually making money. I am leaning towards an L.L.C. but need more info. Like if I name my self as an investment L.L.C. or Crop. will I be regulated by Uncle Sam as to what I can do? If anyone has any answers or could point me in the right direction it would be most appreciated
  • #8
  • Jan 21, 2007 12:27pm Jan 21, 2007 12:27pm
Quoting pairtrader
I was wondering if anyone could suggest the best vehicle for going it alone once you are actually making money. I am leaning towards an L.L.C. but need more info. Like if I name my self as an investment L.L.C. or Crop. will I be regulated by Uncle Sam as to what I can do? If anyone has any answers or could point me in the right direction it would be most appreciated
Talk to accrete... i believe he has LLC and he can help you with your questions.
good luck..
  • #9
  • Jan 21, 2007 9:49pm Jan 21, 2007 9:49pm
Hi All,
Thanks for all of your replies they are very insightful.
Tesla, in Vegas we don't have a very large trading community that I am aware of (outside of the Man Vegas who has some awesome info available at no charge on FF) so I feel talking with the so called professionals is just as risky (if not more so) than getting advice from all of you good people as it is kinda out of their realm of normaldom (were are allowed to make up our own words here right). I normally use a CPA for my taxes who for what I HAVE BEEN DOING HAS BEEN GREAT, but when I brought this up in a discussion it was obvious that he had no more of a clue than I did on what was the best thing to do.

WHTenn, I am leaning towards an LLC and from what I have found it seems to be a very good option. Vegas talks about setting up some offshore accounts that sounds alluring as well though. I was wondering if I set up an LLC will Uncle Sam try to regulate my day to day since my primary business will be investment. Any thoughts?

FXnoob, I am not planning to move from Fabulous Las Vegas any time soon even for an awesome tax set up like that. Is that new with your government? I remember hearing that the power had just shifted after the former ruler of twelve years overthrown or elected out. And you also just started using the Euro this month as well right?

BeachBum, I am familiar with all of the Vegas doc's (though not as fluent with the trading style as I'd like to be) and I think all of his advice rocks! I am contemplating signing up for his signal service as well.

Neznaika, Thanks for the tip I'll try to pm Accrete or catch him on a thread.
Thanks again all!!
"Opportunities multiply as they are seized."- Sun Tzu
  • #10
  • Jan 21, 2007 11:06pm Jan 21, 2007 11:06pm
Talk to Trader's Accounting... they are very respectable and a good group.

I've been told by a successful trader that it all kinda works out the same regarding whether or not to do an LLC. You have these costs upfront (around 800-1000), not counting accounting costs to create the LLC.

If you have a good accountant, and are also over the 2% tax rule on your AGI, then it might be better just to go that route...

Regardless, contact TA...
Mr. Trend
  • #11
  • Jan 21, 2007 11:15pm Jan 21, 2007 11:15pm
Quoting Mr Trend
Talk to Trader's Accounting... they are very respectable and a good group.

I've been told by a successful trader that it all kinda works out the same regarding whether or not to do an LLC. You have these costs upfront (around 800-1000), not counting accounting costs to create the LLC.

If you have a good accountant, and are also over the 2% tax rule on your AGI, then it might be better just to go that route...

Regardless, contact TA...
Thanks is Traders Accounting part of FF, or a CPA accounting company?
"Opportunities multiply as they are seized."- Sun Tzu
  • #12
  • Jan 21, 2007 11:19pm Jan 21, 2007 11:19pm
Quoting pairtrader
Thanks is Traders Accounting part of FF, or a CPA accounting company?
They are an accounting company. Based on the East Coast if I recall.
Mr. Trend
  • #13
  • Edited 11:48pm Jan 21, 2007 11:40pm | Edited 11:48pm
Quoting Mr Trend
They are an accounting company. Based on the East Coast if I recall.
Thanks for the tip. just looked at their home page and a few blurbs sounds like they know the business
"Opportunities multiply as they are seized."- Sun Tzu
  • #14
  • Jan 22, 2007 12:05am Jan 22, 2007 12:05am
Quoting pairtrader
I was wondering if anyone could suggest the best vehicle for going it alone once you are actually making money. I am leaning towards an L.L.C. but need more info. Like if I name my self as an investment L.L.C. or Crop. will I be regulated by Uncle Sam as to what I can do? If anyone has any answers or could point me in the right direction it would be most appreciated
I am in the same boat right now. Traders Accounting was mentioned. I have started the process with them to see what they say. There is also a thread here at FF dedicated to them.

http://www.forexfactory.com/showthread.php?t=8177

I recall awhile back that Green Company was also talked about in this forum.
  • #15
  • Jan 22, 2007 12:35am Jan 22, 2007 12:35am
Give Sam the finger and move to St. Kitts. It's what I'm planning to do. We can start a forex community on a beautiful Caribbean island.
  • #16
  • Jan 22, 2007 12:38am Jan 22, 2007 12:38am
Quoting Darkstar
Give Sam the finger and move to St. Kitts. It's what I'm planning to do. We can start a forex community on a beautiful Caribbean island.
Werd up... now if I could only convince my wife...
Mr. Trend
  • #17
  • Jan 22, 2007 12:46am Jan 22, 2007 12:46am
Quoting Darkstar
Give Sam the finger and move to St. Kitts. It's what I'm planning to do. We can start a forex community on a beautiful Caribbean island.
If I lived in pradise then where would I vacation?
"Opportunities multiply as they are seized."- Sun Tzu
  • #18
  • Jan 22, 2007 12:51am Jan 22, 2007 12:51am
Quoting Mr Trend
Werd up... now if I could only convince my wife...
Yeah I had that problem too. I made her watch
Inserted Video
and now she is as excited about it as I am.

I don't subscribe to the conspiracy theorist plot the movie outlines, but it sure is effective...
  • #19
  • Jan 22, 2007 2:01am Jan 22, 2007 2:01am
Hi Pairtrader,

Thank you for your kindly reply. I wish I make a journey to Las Vegas...
(Did you know Kana and Kanji? That picture which I set the example to you was expression that Japanese investment companies tried to give customers a favourable impression.)

We(Japanese)are not yet accustomed to positively aiming at capital gains.
But at this level of interest rates, a deposit of 1 million yen will produce an annual interest of only 100 yen.

In Japan, individual investors have been able to trade foreign currency since 1998, now foreign exchange online trading is more popular among individual investors. Now foreign exchange live accounts which we opened became about 600,000. But Japanese FX brokers is shallow history, we will not deposit a large amount of money...
(I opened a live account at a certain American FX broker.)
Attached Image
Peace and Happiness through Prosperity (by Konosuke Matsushita)
  • #20
  • Jan 22, 2007 6:03am Jan 22, 2007 6:03am
WHTenn, I am leaning towards an LLC and from what I have found it seems to be a very good option. Vegas talks about setting up some offshore accounts that sounds alluring as well though. I was wondering if I set up an LLC will Uncle Sam try to regulate my day to day since my primary business will be investment. Any thoughts?

Uncle Sam should not try to regulate your trading activities nor interfere. I use an LLC for the sole purpose of trading the forex. Make sure your eligible as a trader status and not as an investor status and your all set. (Do a google search for trader status to get an idea of what the difference is). I like being taxed only once since it is an LLC. Use the IRS 1256 Contract rules which is the best of all tax-worlds with ordinary tax treatment for losses, so they are exempt from capital loss limitations. And capital gains (60/40) tax-treatment for gains, so they save up to 12% in tax rates (23% versus 35% at current tax rates).

You will see others tell you to move to another island and trade. (These are ideas from people that want to move and have not themselves moved).This is fine if you do not want to pay taxes, but realistically, you cannot do so unless you have a lot of money in the first place. Just pay the 23% taxes (under the 1256 IRS Contract) and keep your butt here in the US. If you leave and renounce your citizenship, you may regret doing so.
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