I think trading according to your economic capabilities is key. I.e keep your expenses as low as possible - always. All the while you adhere to strict risk and money-management trading. You want maximum sustainability planning for living off trading only. That includes health and social planning as well, of course... Psychologically, handling a spouse while trading full time entails careful planning for a balanced life. If you do not balance between professional time and family concerns then you will not act in a sustainable fashion, as well as not respecting the people in your personal family relationships. You can easily look at family life as social economics... You want balanced routines for both your trading strategies and time resource planning. Failure in planning any area will adversely affect other areas. The most effective planning means looking at your realistic goals first, and then fleshing out plans according to solving "inverse problems" - retracing from your goal back to your current situation. You can also look at "sequence theory". I just love programming and computational theory...
same here, i paid off everything so my monthly expenses are things that are reoccuring like electricity, insurance etc..
I have a benefactor who thinks I'm studying at Juilliard. When asked where my piano is, I tell 'em it's in the shop.
An LLC does not really offer a trader much of an advantage. It complicates your paperwork. Declare yourself as unemployed, and your gains as capital gains. You avoid the social security and other self-employment levies an LLC pays. Also, if your profitable, maximize your funding yearly of your IRA/SEP, setup a trading account, and you avoid paying ANY taxes until you retire. If your trading has massive paperwork, trading a retirement account gets you out of this nightmare.
As an individual, your taxes skyrocket. My arrangement gets me a net tax rate of 19% overall. See your CPA.
I owned an S Corp which is similar to LLC. And it was through a CPA. You are quite misled. LLC distributes profits to its holders - it is passthrough. You cannot "hide" profits. It is wages to the owners, just as if you had a job. And worse, you are paying the FULL 14+ % of social security. PLUS your taxes. Unless you live in a different country, you are likely doing things illegally. Taxation of a Limited Liability Company * If the limited liability company is structured properly, each member reports his or her share of the profit and loss on his or her individual state and federal income tax returns. * Properly structured, it is taxed like a partnership or an S corporation. * Generally, members of a limited liability company are self-employed. They must pay self-employment tax and estimated taxes. * If the limited liability company is not properly structured, it is taxed like a C corporation.