Does anyone out there use an LLC (Limited Liability Company) entity to trade stocks? I need to touch base with someone who uses this type of entity and who has more than one member in the LLC. I have been doing some research over the past few weeks about forming an LLC with a relative of mine and have come across two facts: firstly, an LLC has to have more than one member or it is disregarded for tax purposes and secondly, that owning a relatively too small token percentage of the LLC could be frowned on by the tax authorities. For instance, if my relative owned 99% of the company and I owned only 1% of the company, such a small percent ownership could be viewed as being a sham simply to ensure that the LLC had two members. The problem I am faced with in this is that my relative has quite a bit more money than I, and so the amount of money I can contribute to the LLC will be comparitively small. I was wondering if anyone has set up an LLC and what percentage ownership was recommended by the accountant/lawyer etc who set it up. I want to emphasize that I am not asking for any sort of âlegalâ advice. Iâd just like to touch base with anyone who has some experience doing this. Iâve not be able to find an accountant who really knows the inâs and outâs of this where I live. It would also be nice if anyone who has done this is aware of any sort of special wording in the Operating Agreement. Iâve heard that there are some important wording issues, but I just canât find anything specific online. Iâd like to get some feedback on this as soon as possible, as I really need some guidance... but if you should stumble upon this in 2 or 3 weeks, please donât hestitate to respond. It will probably take until the end of July before the matter is finalized.