LLCs - your experiences?

Discussion in 'Professional Trading' started by TheStudent, Nov 21, 2003.

  1. To the grizzled veteran traders out there who trade through an LLC - what advice would you give to others who are contemplating the same?

    Here are some of my initial considerations, just to kick things off.

    1) Costs go up if you can't convince your broker to keep your fees non-professional.

    2) Adds credibility to your trading record

    3) Annual cost to keep the LLC alive

    4) Safer way to deduct business expenses (lower audit risk)

    5) Asset protection (if you would like to trade for other people and are worried about getting sued)

    Would love to hear from more experienced traders!
  2. I don't know about trading through an LLC, but in general I have found that doing business as that form of entity has been fairly productive.

    I have also found a way to help keep Uncle Sam out of your pocket a bit. Try having your LLC taxed as a corporation instead of a partnership. Then make sure you have S-corp status. Pay yourself through distributions.... It works for me.

    Talk to a CPA before you make the leap. Definitely make sure everything will be to your advantage with whatever type of setup you choose.

  3. I guess I should have qualified my interest by saying that I do not intend to finesse my tax situation through the LLC at the moment - got better ideas for that when my profitability warrants more complex tax planning.

    At the moment my concern is more about creating a high quality track record.
  4. I trade throgh an LLC and consulted with Robert Greene over at before getting started -- their team is extremely proffessional and I would recomend you consult with them...

    If you have any more questions feel free to PM me...

    PEACE and good-speculation...
  5. hjcolvin



    In setting up an LLC how did this affect your trading business outside of taxes.