LLC for option trading (non us resident)

[ddddaaaa335]

I want to open a LLC (US) for my trading operation, I want to check if any of you know the benefits, I don't want to open in FL because is easy to find the information with just your name, I want to protect my assents and my privacy.

I don´t reside in the US, and Im an alien non resident, my country doesn't have a treaty.

What would be the tax for this LLC, all the holdings are short term (buy/sell options contracts)

I appreciate any direction to what do I need to research

Thank you

 

[Sols]

I want to open a LLC (US) for my trading operation, I want to check if any of you know the benefits, I don't want to open in FL because is easy to find the information with just your name, I want to protect my assents and my privacy.

Wyoming and New Mexico are popular for those seeking privacy.

What would be the tax for this LLC, all the holdings are short term (buy/sell options contracts)

Probably no tax in the US (unless the trades take place in the US).

Plus full corporate and/or income tax where you live.

 

[ddddaaaa335]

Wyoming and New Mexico are popular for those seeking privacy.


Probably no tax in the US (unless the trades take place in the US).

Plus full corporate and/or income tax where you live.

The trades are on US options, but the owner doesnt live in the US.

 

[TRGali]

Probably no tax in the US (unless the trades take place in the US).

Sols, may I ask if you are sure that if the trades happen on US exchange (CME for instance), through US broker let's say, that it would mandatorily trigger a need for the US LLC to pay tax in the US ? I have somehow been advised differently but I still have doubts... and taking risks with the US does not seem like a wise thing I want to do.

 

[ddddaaaa335]

Sols, may I ask if you are sure that if the trades happen on US exchange (CME for instance), through US broker let's say, that it would mandatorily trigger a need for the US LLC to pay tax in the US ? I have somehow been advised differently but I still have doubts... and taking risks with the US does not seem like a wise thing I want to do.

I have the same question, for me the benefit is that my brooker would give me margin on a LLC, and right now i dont have that option

 

[Sols]

You should be asking a tax adviser these things, not some anonymous stranger on the internet who could be wrong. The best answer I can give is that it might. US tax code is very tricky once you get into the nitty gritty details.

There's a legend that the only reason they burned down the whole gigantic library of Alexandria was to make room for physical storage of the US tax code. That thing is enormous.

 

[Kalpana Mishra]

I have the same question, for me the benefit is that my brooker would give me margin on a LLC, and right now i dont have that option

Hey, if you want to keep your asset and information private then go with your LLC registration in Delaware state in US and you don't need to pay any tax either on your income apart from yearly state fee. Recently my friend purchased a readymade US company from a offshore provider called RTR Supports Limited with bank account for his crypto business so i know how it works. You can have a try if you need same.

 

[Yrybak08]

Delaware is not private as the post above suggests. Others have recommended Wyoming and New Mexico and they’re right. Those two offer the best privacy on U.S. soil. As far as taxation is concerned; No matter how long you've held the position, Internal Revenue Code section 1256 requires options in this category to be taxed as follows: 60% of the gain or loss is taxed at the long-term capital tax rates. 40% of the gain or loss is taxed at the short-term capital tax rates. This is the same as futures.
Generally speaking, if you are a long term investor in non-real estate securities and spend no time in the US, your capital gains are not taxable. If the short term gains appear to be from trading and not investing, they may be taxable.

 

[kee030]

1. Short term: set up BVI, Cayman Islands, or Turks & Caicos company, and then use IBKR for trading.
2. Long term: Wyoming or South Dakota. Other 0 tax states actually have the gross receipt tax which is calculated from the revenue, you need to check.

 

[nasdaqtradfiguy]

Are there any substance requirements in Cayman/BVI?

Does anyone know
How much would it cost to set up a plain equity holding company (perhaps allowing for options/futures/international products)? & Yearly maintenance?