Forex Trading Through Limited Company | AccountingWEB

Hey everyone I would appreciate any help on a couple questions I would answered Thanks in advance. I am a forex speculative traders who holds trades for a couple or hours to a couple of days.

I am doing well and will now like to form a limited company in which I will be the sole director and shareholder.

I am doing this to form a track record under a reputable basis in order to manage funds in the future.

Talk to an accountant re your set-up, you might even come out of it with an LLP tucked under your arm. It is difficult to imagine how your company could not have a number of assets and liabilities at any given point in time. Presumably you will be asking an accountant to prepare the year end accounts for you.

They will of course deal with any assets and liabilities that need to be included. It would also be a good idea to take advice from an accountant now.

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You need to run through the pros and cons of having a limited company in the first place and then move on to housekeeping matters like how you will be keeping the company's records and how you will be taking income out of the company. You need to be aware that when the tide turns and you make some losses those losses will be of no use to you inside a company - you cant offset against personal incomes as you can now.

Do consider spread betting rather than trading, profits are tax free although losses are not allowable either.

We have a couple of clients who used to trade on the markets and now make it a lot simpler and just bet. The Revenue do have some guidance on derivative trading that makes the distinction between activities undertaken personally and through a company - see BIM You may want to check the Articles to see if this helps.

Whether the Articles need changing is therefore something that may need checking and this is something that a solicitor rather than an accountant may be better placed to advise on. As johngroganjga correctly points out there are a number of pros and cons that need considering when choosing between a company trading and individual investment operation and a good accountant should be able to help you sort these out to suit your circumstances.

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Hey everyone I would appreciate any help on a couple questions I would answered Thanks in advance I am a forex speculative traders who holds trades for a couple or hours to a couple of days. I would really appreciate any help, thanks. Yes Forex trading as its name suggests is a trading activity. I don't think there needs to be anything specific in the Articles.

Difference between individual and company The Revenue do have some guidance on derivative trading that makes the distinction between activities undertaken personally and through a company - see BIM Please login or register to join the discussion.

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