Can someone give the pros and cons of establishing an LLC (if you have done so, not just book theory). What you have found to be the REAL pros and cons (e.g. are you charged more for data fees, etc.)? thanks!
Would appreciate recommendations for accounting groups who specialise in LLCs for individual and Prop traders.
Why would it? Your tax bill isn't reduced when you buy a sandwich. Generally, tax is on income; the acquisition of assets (be it a cashflow generating asset or a consumable asset) has no impact on taxable income.
with an llc one of the only benefits you get is the ability to hide behind it. otherwise you still have to claim mark to market with the irs the following yr if ur trading stock because it's not going to eliminate wash sales as a corp would. you can write things off though like computers and magazines.
Just spoke to my cpa, no you cant defer taxes even if you dont take profits... Your only remedy is mark to market accounting that will take into account any loses you may be holding even if the stocked havent been sold yet.... Nick