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Irwin Law
Irwin Law, Attorney
Category: Legal
Satisfied Customers: 4872
Experience:  Lawyer & Real Estate Broker, 30+ years, foreclosure, land contracts, inheritance, probate.
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for trading professionals/brokers: Do i need to have to

Resolved Question:

for trading professionals/brokers:

Do i need to have to pass a series 56 license to trade for myself under my business name----not for anybody else.
Submitted: 12 months ago.
Category: Legal
Expert:  Irwin Law replied 12 months ago.

Good Morning, and thanks for submitting this question. You did not say what you are trading, or with whom you are dealing, but generally you may trade for your own account without any license whatsoever. If the account is in a business name, the broker will require a formal authorization from the business which permits them to deal with you on their account. If your situation is more complicated than that, please submit a Reply with more information. Above all, enjoy the day.

I hope that this information is helpful. If you need further information, please just send me a reply asking for clarification. After that, I hope you will enter a positive rating so that I will be credited for assisting you. Also, be sure to verify this information with a local attorney who is familiar with your local laws and procedures. Thanks again for using this service. Your business is appreciated.

Customer: replied 12 months ago.

Good morning,


 


Day trading, swing trading stocks and possibly trading options as well. I was told, since I would be working from home there would be tax advantages to have it set up as a business instead(the only thing is I would be trading for myself)


 


Based on that clarification, would I still need to pass the series 56 exam in order to count my gains for my business rather than personal? in addition to the formal authorization mentioned earlier?


 


Your input would be greatly appreciated.

Expert:  Irwin Law replied 12 months ago.

Your license situation and income tax are two separate issues. When you trade investment vehicles for profit, your gains will be taxed as short term (you're a day trader) capital gains, i.e. ordinary income tax rates. It won't matter whether you operate in your own name or as a corporation or LLC. You should check that with whoever advises you on income tax matters. The only reason you would have to pass an exam is if the company you have an account with requires it. It won't affect your taxes.

I hope that this information is helpful. If you need further information, please just send me a reply asking for clarification. After that, I hope you will enter a positive rating so that I will be credited for assisting you. Also, be sure to verify this information with a local attorney who is familiar with your local laws and procedures. Thanks again for using this service. Your business is appreciated.

Irwin Law, Attorney
Category: Legal
Satisfied Customers: 4872
Experience: Lawyer & Real Estate Broker, 30+ years, foreclosure, land contracts, inheritance, probate.
Irwin Law and 18 other Legal Specialists are ready to help you

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