As a funded trader at Frontline Prop, you are not an employee of Frontline. You are an Independent Contractor.
Your earnings should be reported as regular income on your tax return. You are only required to report the actual account withdrawals you made during the year — not unrealized profits sitting in a funded account.
Our payments and contractor management partner https://riseworks.io collects the required tax data when you onboard with them. See How do I get set up on Riseworks?.
US traders — 1099-NEC
At the end of the US tax year, all US citizens who received more than $600 in withdrawals will receive a 1099-NEC form from Riseworks for tax reporting purposes.
Non-US traders
Non-US citizens will not receive a 1099-NEC (it is only used for US tax filing). Frontline cannot provide documents for reporting taxes to foreign governments. You should report your trading earnings in accordance with the tax laws where you live.
Important: we are not tax advisors
Frontline is not a tax advisory service, and we cannot provide tax filing guidance. We strongly encourage you to consult a local tax professional if you have specific questions about how to file your trading earnings in your country.
Can I trade under a business entity?
US-based single-member LLCs are permitted. Multi-member LLCs are not allowed, and we cannot open accounts for S-corps or C-corps.
When opening your Frontline account, you will enter your personal information on the account opening forms. You can then enter your single-member LLC business information at Riseworks so that payouts are issued to the LLC.
Please note: setting up a single-member LLC at Riseworks takes longer than a personal account because the KYC is a manual process.
We cannot accept applications from international business entities or make payouts to international businesses. International traders must onboard as individuals.