Please comment on last line

Discussion in 'Prop Firms' started by belikewater, Mar 29, 2002.

  1. I am considering joining a prop firm. I ran into the link below. I am most interested in the last line that suggests that a trader join as an entity as opposed to an individual.

    I realize this is one opinion and I was hoping that more experienced people could comment furtther. Firms.pdf

    Thanks in advance.
  2. If they let you do that, and you are making enough to offset the organizational and ongoing fees I would.
  3. Most firms don't want you to join as an entity, and it serves no purpose for you as a trader either. Since, as an individual, you are not subjected to Self employment tax, you save $$ on that, and you aren't subject to double taxation.

    Since you are a licensed individual, and your losses should be limited to the amount you put up, you should stick to trading as a member on a personal basis.
  4. If an individual is a member of an LLC, his own shell for the sake of this example, and that LLC is a member of the prop LLC, FICA doesn't come into play, they are both pass through entities.

    Whether the prop LLC will allow this is another manner; must be legal though, I have had that proposal presented.
  5. Thank you for your responses!