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Should a UK Limited company open a LLC account or a Corporate account with Broker?
Hello!
I'm in the UK and in the process of setting up a one-man UK limited company [Private Company Limited by Shares] to trade futures via the company. Of course, I will be the director of the company.
Should I be filling an LLC account opening form or a Corporate account opening form with the brokerage firm? Is there anyone from the UK who could comment if you had gone through a similar setup.
I take it you are primarily setting up a limited company too avoid any personal liability in the event of a margin call for extra funds in the event of a black swan event?
No. I’m already a higher rate tax payer it doesn’t make sense for me to take profits out (from trading) as they are taxed differently (capital gains tax vs income tax) and you can’t write off any of the expenses. Whereas if you trade via a company then trading profits just become income for the company and will let the company build up the profits and then draw dividend when I have no other income from my other business (helps to smooth out cash flow).
On the question of margin - it makes no difference as the broker gets a power of attorney to shut out all positions if the equity drops below a certain amount.
I'm in a similar situation. Also a one-man proprietary limited company but I'm in Australia.
I asked two agents from AMP, one told me to apply for LLC the other one told me to confirm with AMP Clearing's compliance department.
I also asked GFF's broker who told me usually LLC.
I'm waiting for the response from AMP Clearing's compliance
The type of company you have is known to your accountant. The clearing firm cannot decide what entity it is.
You have to make this claim yourself when you establish an account.
Regards,
Matt Z
Optimis Futures
There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
You have to be more specific. We treat Corp. and individual accounts the same way when it comes to service, margins, etc. The choice of Individual versus corp has more implications with the trader in my opinion.
Matt Z
Optimus Futures
There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
