Nothing against other posters, but I don't want to go against the IRS and say "while joe on elitetrader said I should do this". Contact a CPA and/or attorney. I'm currently working with Robert Green (www.greentradertax.com) but there are other CPAs who do this as well (tradersaccounting.com, etc -- google them). SSB
thats what the lawyers and the entity sellers want you to believe. you just cant prove that statement. im a cpa and all of my peers also say its absolutely not proven fact.
Regardless of what they may say, do you want to be the whipping boy and the example? What if they're right? I don't. Creating an LLC seems like a pretty legitimate answer according to my research. :shrug: