Futures, Taxes, LLC or IRA?

E

esc_trader

Opening an acct w/Interactive Brokers. Will be trading futures, probably some stocks & options as well. I have an LLC (rather inactive however).

Tax-wise are there advantages to opening as the LLC vs just a regular acct?
Maybe an IRA (gains are tax free), but if the regular futures taxes are not too much - it matters less. I'd prefer SEP-IRA cause the deduction can be bigger, but I'm not drawing much income from my LLC at the present time. That may pick up in future years.

Can I just open the acct as an IRA, put 5500 in (2015) and 5500 in (2016) now and just start trading it?
 
The LLC is a business so it will be easier to write off some business expense. However, the IRS looks at a single member LLC as a disregarded entity. To the IRA it's the same as a sole proprietor business. All you income filters down to your SS#. The LLC will shelter your assets outside the LLC from law suits while a Sole Prop will not. LLC and very good for trading businesses.
 
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