Discussion in 'Prop Firms' started by Turlo, Sep 11, 2003.
does anyone know if you can trade as a corporation at a prop firm.
Some firms allow an LLC to be a member of their LLC. Why be a corporation? Is it for tax purposes or liability or what?
Yes you can...get with your accountant though and make sure on the tax implications...I ve seen many do it though and treat themselves like a corp. entity.
that's what I have set up w/ my prop firm
my S corp partners w/ LLC prop firm
just consult w/ your accountant...they'll take care of it
What firms allow you to join as a corporation?
We don't want to force our traders into a double taxation situation, or have the give up the benefits of being completely free of paying any self employment (FICA) taxes.....so all of our traders are individuals.
If you want to raise some money to trade with, then just make agreements with those who are helping, don't over-complicate it and pay all those extra fees (accounting and tax wise). For retail traders, there may be some other considerations, and, yes, you should consult your accountant. Perhaps Bob Greene could pop in to help in those cases. Bob?
If Bright Trading is an LLC, why do you care what entity is the member. If the trader want to pay fica that's his problem. Depending on his tax situation it may benefit him. He can then put money away in a retirement plan for example. It has no effect on the LLC. It seems presumptuous to this Liebertarian that you are making tax decisions as a big brother for others. I can see if your reason was legal or had something to do with collecting money from a busted out trader but making tax decisions seems a little much.
Bright Trading "Inc." used to allow/suggest their traders to join as a corporation. But when they changed to Bright Trading "LLC" they forced their traders to join as individuals. I know a lot of traders were f$%#ing pissed about that. My guess is that it had to do with the Bright brothers ability to go after traders that had blown up more than their capital contribution.
Well, that's interesting...since we've never encouraged or had corporate members. The decisions have been pretty much made for us by the Regulators, and yes, we did choose an election to help our traders with their exemptions. We certainly don't make these decisions in a vacuum.
Are you referring to the mark to market election or some other election?
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