Trading under an Entity question

Discussion in 'Professional Trading' started by fred16, Mar 15, 2007.

  1. fred16


    I have a full-time job and make around 150 trades a year. I was interested in setting up an LLC or C-corp in an effort to write-off some of my expenses, (Education, charts, online research, etc.) but seem to get the impression that if all I do is trade then I am most likely going to end up as Personal Holding Company and therefore pay the associated tax rate on my gains.

    I intend to retain my job for the next five years and simply build equity in the company so there will be no dividend payouts, or salary issues. Simply looking for a way to re-coup some of my trading expenses.

    Anyone have any experience doing this, either positive or negative?