Registered: Jan 2012
Posts: 175

Before anyone says it, yes going to a cpa would be best, but I'm only at the point of exploring what is best for me but not at the point where spending money figuring it out is best. I've been looking at the ES volume incentive program, and it looks like something I will want to apply for next year. My question is if you create an entity for the purpose of getting an electronic corporate membership, do you lose the 60/40 tax treatment of futures?

Registered: Aug 2010
Posts: 141

No. Create an LLC, that is a disregarded entity by the IRS, and just choose pass though taxes so you are taxes like a sole proprietorship. While it wouldn't matter how you choose your LLC to be taxed, this way there is zero question period. I formed an LLC for the same reason as you mentioned. Let me know if you have any other questions about the process and I will be more than happy to help. I'm feeling nice today.

Registered: Jan 2012
Posts: 175

Thank you for the reply. That helps a lot for me to decide what path I'm going to choose because I did not want to constantly lease a seat and don't want to buy an IOM seat either for my current situation. The volume program is looking to be the best option for as long as they keep it open.

Registered: Jul 2012
Posts: 154

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Quote from FroggerMan:

Let me know if you have any other questions about the process and I will be more than happy to help. I'm feeling nice today.

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Registered: Jun 2009
Posts: 1733

An honest man ... lol.

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Quote from FroggerMan:

I'm feeling nice today.

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Registered: Aug 2010
Posts: 141

Just because 95% of people here are douches or trying to sell something doesn't mean I am. Once in a while I like to help people out becuase of people who have helped me in the past... I do have some LCD monitors I am selling on amazon however...

Reguarding the program being renewed for next year most likely it will. I actually lease a seat now so I don't utilize the program anymore but I still trade through my LLC for all exchanges except the KCBT becuase it only costs me $50 per year and adds some legitamacy to my business. Setting up an LLC is easier than filling out the CME Membership Application (at least in Colorado) so there is no reason to pay anyone to do it for you. The only exception would be if you are trying to keep you personal assetts seperate from your business's which it doesn't sound like you are trying to do.

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