What's wrong with this assumption. You start a single owner LLC (investment LLC) in 2008. You do an owner contribution of e.g. 20k. You open a trading account for the LLC and trade. You blow 10k within 2 month You close the LLC still in 2008. Income/Losses are passed through to your personal tax return. Can you deduct the 10k losses of your LLC contribution immediately (2008 tax return), and therefore avoid the 3k/year limitation you'd have as an individual investor? If not, why not? Is there any place you can find more info about this? Thanks.