I am getting so many different recommendations from trader tax consultants/tax services. One insists I need an LLC for my accounts and a C corp. to manage the business (Of course they will set it all up for $3375!!!). Another wants 150. just for a consultation which I think is total BS. I talked to another that said it's better to trade under your own name and elect Trader in Securities status with MTM accounting. Trader Status is contraversial and I hear some people get denied when it's time to file, so they thought they could write off business expenses, be exempt from the wash sale rule and the 3000 max loss write off and then find out they are screwed. I know starting an LLC is a way to guarantee these benefits but I live in CA and CA is brutal on LLCs. We have to pay an 800. franchise tax fee even if we break even or LOSE MONEY! Also there is an income tax that ranges from around 250 I believe all the way to upwards of 9000 per year for the most financially loaded LLCs. Well, my question is, how do some of you set up your business and do taxes? Any info or recommendations? Thanks! Jody
http://www.elitetrader.com/vb/showthread.php?s=&threadid=78114 Hope that link works - same type of question - different thread with some good answers and links. I'm in Cali too and contemplating the same thing - go to the states website and download their info on business formations - I don't think I'll be using a LLC here - but you should read the info yourself. You may want to look at it in the light of is trading your only business? Or will you want to run another as well - that may change what formation you want. Good Luck