LLC Taxes

Discussion in 'Prop Firms' started by uptik2000, Oct 15, 2001.

  1. Can anyone comment on how professional firms that operate as an LLC(ie. Echotrade) treat taxes.
    This is not just for Echotraders but anyone else who is working at worldco , echo, heartland, etg...
    can you put some light on how a trader pays taxes.

    Don't fade yourself. :cool:
  2. ok, thanks for the private mail about the k-1
    I guess i was wondering more about:
    how is that money taxed

    and any other bits of info to prepare myself for next year
  3. ok-I'm replying to myself for the second time to bump this up to the front page...nobody has replied
    Is it because nobody knows?
    Is it 'cause nobody wants anyone else to know?
    Are the Yankees gonna get shut out?

    "Utah, get me two!"
  4. vinigar


    check out the thread entitled....The bad part about Pro Trading Firms....they got off into taxes....some people there seem to know what they are talking about.:)
  5. This is an interesting topic, but I am not a tax expert. The way Lieber & Weissman Sec., L.L.C. is set up, you are taxed as ordinary income and each L.L.C.. member gets a K-1 L.L.C. partnership tax form at the end of the year. Lieber & Weissman ,
    L.L.C. is audited yearly according to PHLX and SEC guidelines.

    I would advise all prospective L.L.C. trading members to read their
    L.L.C. members agreement and seek the advice of a qualified CPA
    who understands L.L.C./Partnership tax accounting practices. You
    may ask other traders who they use or go to the following sites
    tax professionals who might help:

    Green & Co., Robert Green CPA

    Mann & Company CPA’s P.C.

    I would also advise traders to keep haircuts & confirms for three
    years. If your broker sends you e-mail reports and you can put them in an excel spreadsheet format, this may be a big help to your tax professional.

    Gene Weissman
    Lieber & Weissman Sec., L.L.C.
  6. To Gene:

    Since each member receives a K-1 at the end of the year and trading gains are taxed as ordinary income, would these gains be subject to social security and/or self employment taxes?
  7. Vinny,

    I think it would be best if you contacted one of the tax professionals I have listed in my last reply who are familiar with the current L.L.C. tax guidelines. It's my policy not to comment on L.L.C./L.L.P. partnership taxes since this is not my area of expertise. I would also select a tax professional who is familiar
    with the L.L.C./L.L.P. structure.

    Gene Weissman
    Lieber & Weissman Sec., L.L.C.
  8. I know that when you work for an LLC as a trader,you receive a K-1 at the end of the year showing your trading gains.Would anyone know if these gains are subject to social security or self employment taxes?