Prop (LLC) tax question...

Discussion in 'Prop Firms' started by cubical, May 7, 2008.

  1. cubical


    How do you guys report your taxes when trading through an LLC? I use trubotax. I am moving to IB, but need to know next year when I file my taxes for the LLC i just left. Thanks guys.
  2. (Not tax advice nor anything representing Bright Trading or any of it's affiliated businesses).

    In our case, our traders receive a K-1 for their "triple net" income with an exemption from Self-Employment tax (FICA).

    There are variables involved, from firm to firm.


  3. If LLC gives you K-1, just fill in the K-1 form with turbotax.

    If LLC gives you 1099, you just report the 1099 earning in the turbotax. You need to pay self-employment tax with 1099, but turbotax will take care of it.