Forming an LLC?

Discussion in 'Prop Firms' started by JCS, Mar 27, 2008.

  1. JCS


    Do any of you guys who trade at prop firms have your own LLC or just trade as an individual? What are the implications with this?

    When you trade at a prop are you taxed? As self-employed?

    Thanks for any feedback
  2. Can't use "enities" and wouldn't want to anyway, you would lose tax advantages.

    Our traders are given a K-1 based on "triple net" which means all their expenses are taken out on their sheets, and then in December they submit their "outside" expenses to us, and we reduce their income by that amount.

    One number, mark to market...and exempt from FICA (Self employment tax).

    Entity would lose the "limited" part of the LLC, not good for the traders.

    That's how we set it up anyway.