I have established an LLC taxed as an Scorp, what is the best brokerage to use to trade with under this? Can i just trade under the optionshouse account I already have? Or do I need to setup a new account under the LLC?
Ryan, As others have said, your LLC must open a brokerage account under that name and EIN#. In addition, you will likely need a business checking account in the same name to move funds back and forth becasue of AML rules. Bob
perfect thanks guys! already got the checking account setup, for some reason it's hard to get a lot of information about LLC brokerage accounts on companies websites. any recommendations on companies or do they all treat LLC accounts basically the same as retail accounts?
No, an entity pays professional brokerage fees for market data. Shoot me an email with your contact information and phone number if you want to ask more questions. Happy to help. Bob
Bob, I thought you were only a "professional" if you traded for a firm (not your own entity)or managed others money.
I can't get to the rules on professional market data from my cell phone. I can try and post it later. The exchanges consider all accounts not in a persons name, professional, including all LLCs , LPs and trust accounts.
Interesting, I don't recall paying pro fees in TS but when I signed up with Mirus, they offered to eat some fees...maybe that was it.
A LLC is not a natural person. It is a business entity. SECTION 2: NONPROFESSIONAL SUBSCRIBER 9. NONPROFESSIONAL SUBSCRIBER DEFINITION - "Nonprofessional Subscriber" means any natural person whom Vendor has determined to qualify as a "Nonprofessional Subscriber" and who is not: (a) registered or qualified with the Securities and Exchange Commission (the "SEC"), the Commodities Futures Trading Commission, any state securities agency, any securities exchange or association, or any commodities or futures contract market or association. (b) engaged as an "investment advisor" as that term is defined in Section 201(11) of the Investment Advisor's Act of 1940 (whether or not registered or qualified under that Act), nor (c) employed by a bank or other organization exempt from registration under Federal and/or state securities laws to perform functions that would require him or her to be so registered or qualified if he or she were to perform such functions for an organization not so exempt. 10. PERMITTED USE - If Subscriber is a Nonprofessional Subscriber, he or she shall receive Market Data solely for his or her personal, non-business use. 11. PERSONAL AND EMPLOYMENT DATA - As a prerequisite to qualifying as a "Nonprofessional Subscriber", Subscriber shall provide the following information: