If I'm trading my own capital at a firm, lets say for example's sake, like Bright, VTrader, Echo, etc, do people usually set up LLC's under some trading company's name to track their results and/or for tax purposes? Is this even necessary since you are under the umbrella of a larger firm, or is this more of a recordkeeping/legitimacy issue? The reason I ask is because someone who knows the biz suggested that I do this and I didn't get the specifics on how or why. Thanks
You really don't want to attempt to set up a "sub LLC" - in our case you would lose your tax benefits, and would be personally liable vs. "limited liability" - in virtually every case, it makes no sense to the trader to become an "entity." Don