Registered: Apr 2006
05-03-12 06:35 AM
You might want to get a good trading accountant, as this was a huge point of contention last year and caused us to change accountants.
Ideally you put your trading funds into an limited partnership (LP). This is run by your management company (LLC) which runs the day to day operations, pays for office space or whatever (perhaps not much money in this).
My understanding is that your partnership fund could be virtual (A Delaware corp), and your management company could be WA based and would pay the 1.5%-ish BO tax--but only on the small amount of money that ever goes into it. The majority of your money stays in the LP and does not get taxed. Note that the LP is not subject to DE tax either (why? I don't know).
There are probably other ways to do things, i.e. you could potentially be fine not having any company at all. I am not an accountant or lawyer. Good luck.