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Do you think this would hold up? Worth doing? Anyone with experiance

Place your trading capital in a entity structure. In most cases, you would set up a "C" corporation as your money management firm. This would give you all the benefits and perks of a corporation. It would also create a second tax bracket, effectively splitting your income into two lower tax brackets, individual and corporate. Now, instead of simply transferring your trading capital to the corporation, you will transfer it into a limited partnership. Your corporation would be the general partner. You, as an individual would be the limited partner. This strategy allows you to take a portion of your gains as a limited partner and have them flow directly to your personal return with no social security taxes, and have the rest of your gains flow to the corporation, where you get the aforementioned benefits.


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