Quote:
Originally Posted by cockeyedcowboy
a side note; has nothing to do with corporations, but taxes.
I attended a trade show (FX) in Las Vagas two years ago. One of the letturers there that year was a trader tax accountant. Can't remember which one. He was beating his fist in the palm of is other hand, telling the attendents that THEY had to demand 1099 for their FX brokers because with out it you cant file taxes on gains and losses in Fx. He went on and on about not to use a broker if it did not file 1099's etc..
So I asked, Why do you want to do that? If they did not give you a 1099 at the end of the year, then they haven't given one to the tax people either. Everone there got my point. So I not sure your requirments for forming a corporation. But...
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Because sooner or later, the tax man will cometh. Regulators can easily demand FX brokers to retroactively file 1099's. It is all in electronic form anyways, so it would not be too difficult for the Brokers to implement. Then the IRS will just electronically look at all the missing filings over the past years, match it to your ss number, audit you, and then you will owe so much in late payment fees and interest, it would not be funny.
So maybe now, you will get his point finally. I always file all my trading activity, and not worry about it. Besides, I don't look that good in pin stripes.
No idea on the corporation. I see a lot of people do it in NV though, but not sure why either. Would be interesting to see what others comment.
Or the better question may be, why do you want to incorporate for trading forex and what are your plans after getting incorporated?