Hi guys, this is an empty FAQ for the moment, I’m sorry :P. If this is the wrong sub forum I do apologize. Maybe a moderator can move it.
I’ve been reading, studying, testing and demo-trading for almost 6 months. At the beginning when I read that gurus recommended at least 6 months of paper trading I thought “Six months!!! That is crazy, that is too long!!”, but reality came in front of me just like an slap. This is hard, this is tougher that I thought at the beginning. Any one that wants to be a profitable trader has to learn, and try, and test… And here I am, I almost concluded my six months. It is not that I said “ok, just six months and go”, but now I feel more confident, much more confident. I know very well that I’m at the beginning of the path, I still have so much to learn…
So now is when I have to start thinking of the next step and be prepared for that. I want to do a bit more of paper trading to be sure that everything is ok, but I feel that the jump is near and I have to know what I should do about legal stuff for when I say “Beam be up Scotty!”. So I’ll try to gather here all the info that I find.
This is my situation:
[ul]
[li]I live in the [B]UK[/B] and t the moment I have a job. That won’t change in the short future, nor probably in the medium term future.
[/li][li]I want to do [B]everything legally[/B], I mean about taxes for the possible profits.
[/li][li]I’ll probably start with between £5.000 and £10.000. That is big enough to pop in the radar of the bank and/or HMRC (Her Majesty Revenues and Customs). That is why I wrote the point above.
[/li][li]I think I know which broker I’ll use, the same one I’m using for paper trading. I won’t say for the moment which one as I think it has nothing to do with this matter, unless they provide help for legal/tax stuff.
[/li][li]I won’t retire money month after month. My plans are to reinvest most of the possible benefits.
[/li][/ul]
As I said I want to be ok about taxes. First of all I need to find the way to pay less taxes. I don’t know if I can declare benefits/gains as a person, so probably I will have to choose one out of the following options:
[ul]
[li]Being a Self Employee (this is like a company of just one person).
[/li][li]Create my own [B]Limited Company[/B].
[/li][/ul]
I think I prefer the second one, a Ltd company. It is more flexible and I always wanted a company 
besides that I think I have more pros, like deciding how much is going to be my salary, and leaving the rest as dividends. Also I can buy stuff for the company and avoid paying VAT but I don’t understand very well that yet.
Even if I don’t retire any money for months I think it would be wise to have the company started before the first money transfer to the broker. Otherwise, if I transfer the money to the broker account and then I create the company (months later) it could look suspicious for HMRC.
I need an [B]accountant[/B] as well. This is weird because I’m not planning to withdraw any possible benefit, but I feel that I need some advice, for instance if I buy equipment, or if I want to deposit more funds in case I want to enlarge my account bankroll. In case I hire an accountant I think I will retire from the the account just enough to cover those expenses. Accountant rates can have a big range, I guess that depends on how much they will look after you.
This is what I have thought so far. Any suggestion, comment, contribution is very welcome!! [B]Beam me up Scotty!![/B]