whats involved

i am starting to trade fulltime and want to register a llc corp . I only trade futures . is it that hard to do accounting . I called a few and just to register a llc + get tax id number that cost a total of $150 i have gotten quotes of $2500 - $3500 . I have a auto business and do all my own taxes . From what i read futures you just need to report the 1099 and dont need to have details on each trade like stocks .

 

Why do you want to use the LLC?

You should consult a tax specialist first, then if you still want an LLC, try this:

• https://www.irs.gov/businesses/smal...-an-employer-identification-number-ein-online
• https://www.blumberg.com/corporate_services/nationwide.html
• https://www.rocketlawyer.com/form/llc-operating-agreement.rl#/

 

You'll have to register those trades from the Llc. Ideally, you'd have someone out of the country you live. "A tax free zone."

P.s. It's not hard to do accounting, it's incredibly hard to avoid home country taxes.

 

I don't think he mentioned he was wanting to avoid home country taxes.

 

Correct...at least for US taxpayers, you just report the one number on your 1099B. 60% goes to long term cap gains, 40% to short term cap gains. Also I agree with the question that Bob asked, why do you think you need an LLC?

 

Which setup is best for losses?

 

An entity that qualifies for business trader tax status...
Ordinary business loss vs maximum annual loss deduction of 3K.

LOL!

 

well i am profitable and LLC lets you write off expense and when profitable i assume there is some tax advantage .

 

SO if i dont register a company and just report it as income i can still apply as a trader status . I thought you had to do that through a registered business company ?

 

watchdaride,

I'm not allowed to provide tax advice. That said, ALL futures are 1256 contracts and are MTM. I believe that the trader status your are referring to is for equities and options. https://www.irs.gov/taxtopics/tc429.html
I think you would benefit from consulting with https://www.greentradertax.com/. They can help you determine based on your business if you should trade as an individual or entity, and if entity, how that entity should be structured.


Bob