|
PureBytes Links
Trading Reference Links
|
I have thought long and hard about this matter and finally concluded that
filing as a "trader" is the best way to go.
First of all, as a trader, you would not normally need the legal liability
protection and limitation a business entity would provide (which is the main
reason and benefit of a business entity).
The biggest advantage of filing as a trader is the avoidance of
self-employment tax or social security & FICA taxes, which totals about 15+
% I believe. Other than this, you are entitled to all kinds of business
deductions, etc. that self-employment or a corp. entity is entitled to,
EXCEPT for contributing to any retirement programs (since your income as a
trader is considered un-earned income) AND health insurance deductions.
These two disadvantages are more than made up for by the 15+% tax savings, I
think.
The additional paperwork, record keeping, filings, and other misc. redtape
will also cost you time and money if you incorporate.
Hope this helps.
Best regards,
Levent
----- Original Message -----
From: "Brian Keith Voiles" <admagic@xxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Wednesday, September 27, 2000 6:09 PM
Subject: [RT] Best Tax-Advantaged Way for an Individual Trader
> RealTraders,
> I day trade the S&P 500. What I'm wondering is it better to
> set-up an S-Corp and trade under that umbrella and take my
> pay from the corporation as an employee? Or is it better to
> trade as an individual?
>
> Any suggestions are welcomed.
> Thanks,
> Brian Voiles
>
>
>
>
|