Broker account, personal or institutional (corporation) ?

[Mike Forman]

What would be the advantages / disadvantages to open a personal and/or institutional broker account, beside taxation depends on the jurisdiction?

Is there any benefit to open both personal and business account and can you open those in two different jurisdictions, which would result in being registered in two different branches in case of IBKR?

 

[Martin Everson]

Mike Forman said:
What would be the advantages / disadvantages to open a personal and/or institutional broker account, beside taxation depends on the jurisdiction?
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In 2022...not much outside of tax planning. Maybe ability to move assets to a third-party by changing control of the company. I would not even say it offers any type of asset protection or privacy now however.

Mike Forman said:
Is there any benefit to open both personal and business account and can you open those in two different jurisdictions, which would result in being registered in two different branches in case of IBKR?
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Maybe geographical diversification from regional issues.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Praetorian]

Depends entirely on where you intend to pay taxes and if you are looking at diversification like Martin mentioned. I would avoid complicating your setup with a corporate account unless you have a real reason to do so (You'd pay less in corporate taxes than capital gains taxes for example or you'd get specific advantages from a jurisdiction if you operate a corporate account). I've also seen traders take the corporate route because their jurisdiction taxes them at the regular income tax the moment they declare trading gains as their main source of income.

If your goal is to avoid scrutiny and achieve more discretion, use a personal account.

 

[MiltonStone]

Research the tax regulations and rules in your country of residence to do proper tax planning.

 

[zzzzzz]

Mike Forman said:
What would be the advantages / disadvantages to open a personal and/or institutional broker account, beside taxation depends on the jurisdiction?

Is there any benefit to open both personal and business account and can you open those in two different jurisdictions, which would result in being registered in two different branches in case of IBKR?
Click to expand...

- US estate tax for nonresident alien with US sic. assets
- protection from lawsuits

Last edited: Sep 20, 2022