Which tax forms should I submit?
If you have US citizenship, you must fill out a W-9. This is true even if you do not currently live in the US. Additionally, if you are a resident alien of the US, you must fill out a W9 regardless of your citizenship.
If you do not have US citizenship and are living outside of the US, you must fill out a W-8BEN.
Are funded traders employees of Purdia Capital?
No, all traders are considered independent contractors and are not employees of Purdia Capital.
How should I report my earnings from my funded account?
Funded traders should report all payouts as regular income. Note that funded traders do not need to report as income any trading profits in their funded account that have not yet been withdrawn.
Can I set up my funded account as a business entity or LLC?
No, you cannot open a Funded Account under a business or company. Traders can only set up a Funded Account as themselves (an individual) using their full legal name. Even though traders cannot set up a Funded Account under a business, traders are permitted to receive payouts and file taxes under a US-based single-member LLC.
If you want to use a single-member LLC, Purdia Capital will create your Live Funded Account using your personal information. You can then complete your tax documents for the account with your single-member LLC information.
If you want to use your eligible business to receive payouts and file taxes, you must use your personal information (legal first and last name, etc) on the Funded Account Agreement. You can enter your business information on the bank information and tax forms. Purdia Capital traders are not permitted to receive payouts or file taxes under a C-corp, S-corp, or multiple-member LLC.
What tax forms will I receive at the end of the calendar year?
Traders that receive over $600 worth of payouts in a calendar year and have US citizenship will receive a 1099-NEC during the following year. The amount of funds the trader received will be recorded on the 1099-NEC form as non-employee compensation. Purdia Capital is not required to provide a 1099 form to anyone earning less than $600 during a calendar year.
If you do not have US citizenship, you will not receive a 1099 form from Purdia Capital. The 1099-NEC is only applicable for United States tax reporting purposes and not for reporting in other countries.
How should I report my earnings to another country other than the US?
Purdia Capital is not obligated to provide any documents for reporting taxes to foreign governments. Additionally, Purdia Capital is unable to provide guidance regarding foreign tax reporting. We advise traders to report any earnings in accordance with their country’s local tax laws. We would also recommend that traders consult a tax or legal professional if they have any specific questions regarding their country’s tax standards.
