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. http://www.daytradingstocks.com/ProTrader Firms.pdf Thanks in advance.
If they let you do that, and you are making enough to offset the organizational and ongoing fees I would.
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.
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.