As a funded trader at TradeDay you are not considered an employee of TradeDay, you are considered as an Independent Contractor.
Earnings should be reported as regular income. Traders are only required to report the actual account withdrawals they made that year.
Our payments and contractor management partner Riseworks will collect the required data when you onboard with them.
At the end of the Tax year, all US citizens who made withdrawals over $600 will receive a 1099-NEC form for tax reporting purposes. Non-US citizens will not receive this form (it is only used in filing US taxes). We cannot provide any documents for reporting taxes to foreign governments.
Please note that TradeDay is not a Tax Advisory service, and we cannot provide any tax reporting guidance.
We encourage traders to report earnings in accordance with local tax laws. Please consult your local Tax Advisory services if you have specific questions about filing your taxes within your country.
Can I trade under a business entity?
US-based single-person LLCs are permitted, multiple-member LLCs are not allowed. We cannot open accounts for S-corps or C-corps.
You will be required to enter your personal information in the account opening forms, but you can enter your single member LLC business information at Riseworks to receive payouts that way. Please note setting up a single member LLC at Riseworks takes time as the KYC is a manual process.
We cannot accept applications for international businesses, or make payouts to international businesses.
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