A couple of people referred to me Robert Green, but none of them said that they use his service....Is it because he's expensive? I mean I understand the concept of "you get what you pay for." Anyway, While I was getting a report from other account on "C-corp" suggestion, I ordered a book, "The Tax Guide for Traders" by R. Green. It finally got delivered Friday. I haven't gotten far yet, but so far I like what he says in this book. - very comprehensive. He brought one of his clients as an example. The client lives in CA, has a full-time job, and trade in the morning, just like myself (only income level is different). And he files schedule C..... An LLC does not provide me with much of benefits other than I could possible appear more professional in the eyes of the IRS (I get an retirement account and health care insurance from my employer). And that's the whole reason why I am considering to set up an entity... But maybe filing schedule C and being ready to be audited might be an option.... Don: Thanks for putting some numbers about CA state tax thing. I was thinking about that the other day when I found out there is no state tax in Nevada. $26,000 out of $100k income is serious money. It always helps to see numbers than just vaguely thinking about it. I am a newbie, and taking baby steps right now, but I see some light in this business and seriously want to pursue this. When I get more confident in my knowledge and skills, and ready to let go my day-time job, I will definitely consider re-arranging my life. One thing though, I thought an LLC does not have to file anything if you chose a disregarded entity for tax filing. In the case, do you still have to file K-1 and FICA?