To use chat, please login.
Back to contacts

Incorporating

rgrausch
Mar 17 2014 at 15:36
6 posts
I'm considering incorporating in the next couple of months and conducting all of my trading activity through the created entity. Does anyone have any tips on what type of structure I should use to trade through? I live in Texas and I would like to be able to sell shares to a few people to increase my trading capital, but I have no license or anything like that. I am also currently a college student so I was hoping that maybe I could offer myself a scholarship from my 'fund' and right off the expense. Is this legal? Thanks for your help, its so hard to get anyone with real knowledge (like a securities lawyer) to talk to me since I'm such a small fish.

ForexAssistant (ForexAssistant)
Mar 18 2014 at 05:45
465 posts
You're playing in a dangerous game, living in the US. Recommend going off shore yourself asap but, the type of corp that you want is called an IBC (International Business Corp.) Best to set it up in Belize (not too far from Texas) or Panama. Both protect your privacy.

If an off shore broker thinks that the corp. is owned by US citizens there is a strong chance that they will terminate their agreement with you. When you set up your corp, tell your lawyer that you want to keep your identity off the record and they will help you to accomplish that.

I have worked with Orion in Belize City, cost around $1500 to set it up and about $600 a year after the first. Good people and knowledgeable. Actually one of the lawyers there is speaker of the house or some high position in Belize.

When you set up your business, your lawyer will ask you how many shares you want to divide your business into. If you sell off a share, you are selling your business. Maybe better to ask the lawyer about selling investment bounds.

Hope this helps.

Bob

where research touches lives.
rgrausch
Mar 24 2014 at 21:00
6 posts
That does help. Thank you for you input. But wouldn't incorporating offshore complicate things too much. I mean, how do I get my money offshore in the first place to open the trading account? Then how do I get it back onshore so that I can use my gains to survive lol? How would I avoid tax evasion issues?

ForexAssistant (ForexAssistant)
Mar 24 2014 at 22:09
465 posts
First of all never avoid paying the governments extortion demands (Taxes). They got guns and are they're not afraid to use them.
Your off shore lawyer (Like Orion) can help you open a bank account for your corporation. You can send money to that account just like anyone would by writing a check. Of course being off shore it is a lot easier to do a wire transfer. Stay under $5,000 a month and the snoops will not usually bother. When you take money out of the business account for your own use, you have to claim it on your taxes as either employment income or dividends. Talk with your accountant to determine which way to go.

Money can be withdrawn from the IBC account via wire transfer but if you get a bank that has Visa or MC debit cards you can just use that. (If you pay your electric bill with that card, it's income, claim it because the government will be watching.)

Off shore is what makes opening an IBC a rational idea. You as a US citizen are hampered by the laws where you live. The IBC is under the laws where it lives. So you are creating a separate entity that you can operate from where the laws are not so restrictive and invasive.

Bob

where research touches lives.
rgrausch
Mar 25 2014 at 07:03
6 posts
I understand. It will just probably be a while before I'm able to come up with the money to make this a feasible plan. Its obviously ideal to incorporate offshore but its so much cheaper to do it in Texas.

Gary Sharp myfxpt com
myfxpt
Jun 17 2014 at 08:36
345 posts
Wow...the lengths that US traders have to go to these days! Whatever happened to 'freedom of choice? Good luck, guys! 😎

rgrausch
Jun 19 2014 at 06:56
6 posts
Still thinking about this, eating, ramen, trying to beat the market, and wondering how to raise capital. lol

Please login to comment .