Do you need to/should you create an LLC if trading your own capital at a prop firm?

Discussion in 'Professional Trading' started by pdwst33, Apr 18, 2007.

  1. pdwst33

    pdwst33

    If I'm trading my own capital at a firm, lets say for example's sake, like Bright, VTrader, Echo, etc, do people usually set up LLC's under some trading company's name to track their results and/or for tax purposes? Is this even necessary since you are under the umbrella of a larger firm, or is this more of a recordkeeping/legitimacy issue? The reason I ask is because someone who knows the biz suggested that I do this and I didn't get the specifics on how or why. Thanks
     
  2. pdwst33

    pdwst33

    Any thoughts on this? Thanks