This is a YouTube video titled "Trading As Your Business (TM) - A Rarely Urgent Yet Very Important Matter" created in February 2012. The content is a presentation by Brian McAvoy from Inside Out Trading discussing the importance of choosing the right business entity for traders, focusing on tax implications and asset protection, and advising to seek professional help from certified public accountants.
Hi, this is Brian McAvoy with Inside Out Trading, and this presentation is part of the Trading as a Business series. Today's topic is going to be about on a rarely urgent yet very important matter. Now, as you know, yes, of course, trading is a business and it is a very real business. And in running a business, there are several matters of significant consequence. As is common in business as in life, often these are quite important, yet they don't scream for your attention on a daily basis. Today's topic has a very high impact in two areas of significance for you. First, one, of course, is taxes. Yes, it is a big deal. And of course, asset protection. Now the big question is, do you have the right business entity to protect your profits, your business, yourself and your family? Taxes, of course, take away from your profits, which again, it's taking away from the lifeblood of your business. But you also need to have the right entity for protection from third parties. See, the right business entity can protect you from third parties from taking away your business asset. It also can help protect you from personal loss if someone happens to come at you through your business. So what's the right entity to have? Well, everyone has their own personal situations, both inside the business and in their life. And you have certain tax liability considerations that are personal to your situation. And you also have asset protection considerations. So really the best thing to do there is no one size fits all, is to get good professional help. And the best source of help would really be to talk to a certified public accountant, not a tax lawyer. Talk to an accountant and here's why. The accountant is going to be current on the tax laws and they're required to stay on top of them. So they're going to be really good help for you there. They should also understand much of the legalities associated with the different entities, particularly for you as a trader. They also can help you get yourself set up for managing your trading business. With the bookkeeping and everything and tax preparation and planning, a good certified public accountant is the best way to go. Another very important consideration when you're talking about getting professional help. It's just like with, say, other legal matters, it is good to have one that works in your particular field of.
