Let's assume you have the choice whether to trade/invest as a natural person or as a company (onshore) in your country of residence, and that the tax will be more or less the same in both cases.
For a crypto/defi/stocks/etf, investor and day trader with crypto sof.
What should you consider before making a possible mistake to incorporate(onshore company) vs staying as a natural person ?
I thought of some elements but I would love to get some other ideas/advices before mistaking
Advantages as a company :
-Salary and dividends would in the long term be a useful proof of source offunds, however I was wondering if the initial hassle of setting up the company and transferring your asset to that company, with loan/or initial contribution certificate, wouldn't be such a hassle on theshort term that it would be as big as the relief you would get in thelong term. (crypto sof) VERSUS just getting capital gains will always be a problem for some banks about a crypto sof
-if you transfer your assets to the company via a loan or contribution certificate, is it enough for banks/brokers, will you meet more hassles than if you just opened a broker/bank account as a natural persons to deposit these assets ? Or the same ?
-Also,if someone intend to have a transactional type of trading, witharbitrage (example withdraw 200keur from a platform and next daydeposit it to an other platform), I guess there doesn't exist anybank account which would provide it for a natural person, and onlycorporate bank accounts would accept that ?
-the cost of banking could be much bigger for companies, it could be 500 eur/month for some banks versus more or less free for natural persons. But can you have an account for natural person which would let you day trade and transact as a pro ?
-as company you might be able to have more leverage and access to moreproducts on some brokers
-the accountancy and mandatory audits will be for sure costly and a hassle, but on the other side will grant you access to any bank and solidify a sof and can be useful forever
Drawbacks of a company :
-thereal time data fees for trading, it can be several hundred euros amonth ?
-"limited liability" is useless for a day trader ?
-there are almost no costs that you can deduct as an investor/day trader
What other elements should one consider to know if it worths it to incorporate an onshore company as a vehicle of trading/investments, what else should be considered as crypto/stock investor/trader ? (out of the fiscal matter)
For a crypto/defi/stocks/etf, investor and day trader with crypto sof.
What should you consider before making a possible mistake to incorporate(onshore company) vs staying as a natural person ?
I thought of some elements but I would love to get some other ideas/advices before mistaking
Advantages as a company :
-Salary and dividends would in the long term be a useful proof of source offunds, however I was wondering if the initial hassle of setting up the company and transferring your asset to that company, with loan/or initial contribution certificate, wouldn't be such a hassle on theshort term that it would be as big as the relief you would get in thelong term. (crypto sof) VERSUS just getting capital gains will always be a problem for some banks about a crypto sof
-if you transfer your assets to the company via a loan or contribution certificate, is it enough for banks/brokers, will you meet more hassles than if you just opened a broker/bank account as a natural persons to deposit these assets ? Or the same ?
-Also,if someone intend to have a transactional type of trading, witharbitrage (example withdraw 200keur from a platform and next daydeposit it to an other platform), I guess there doesn't exist anybank account which would provide it for a natural person, and onlycorporate bank accounts would accept that ?
-the cost of banking could be much bigger for companies, it could be 500 eur/month for some banks versus more or less free for natural persons. But can you have an account for natural person which would let you day trade and transact as a pro ?
-as company you might be able to have more leverage and access to moreproducts on some brokers
-the accountancy and mandatory audits will be for sure costly and a hassle, but on the other side will grant you access to any bank and solidify a sof and can be useful forever
Drawbacks of a company :
-thereal time data fees for trading, it can be several hundred euros amonth ?
-"limited liability" is useless for a day trader ?
-there are almost no costs that you can deduct as an investor/day trader
What other elements should one consider to know if it worths it to incorporate an onshore company as a vehicle of trading/investments, what else should be considered as crypto/stock investor/trader ? (out of the fiscal matter)