How to set up my new Day Trading business?

DavidTrader86 said:
as stated in a previous post, I also own an insurance agency, so the income is not an issue. My intent is to build up the account to the point where, at some point in the future I may be able to live off the income from daytrading.
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Ok saw that, but a minor role next year I assume means a major role trading?

So does that then mean that you will add to the $30k at that time?

None of our business really but $30k as Snuskpelle's post above mentions can compound over several years otherwise agree it is too little.
 
SunTrader said:
Ok saw that, but a minor role next year I assume means a major role trading?

So does that then mean that you will add to the $30k at that time?

None of our business really but $30k as Snuskpelle's post above mentions can compound over several years otherwise agree it is too little.
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I will play that by ear. I will continue to receive passive income from my insurance agency, so income really isn't an issue.

It seems that we are a bit off topic here. I am really just looking to see how other traders have their business set up for tax and liability purposes. I am thinking of setting up a spousal LLC. I don't expect to qualify for TTS for several years still.
 
If listing trades on your tax return is your primary concern - you don't have to.

LLC makes sense if puts you in a very different tax bracket.
There will be some extra costs associated to maintain vs sole-protiership.

Better to base your decision based on costs / taxes projections.

Good luck with this venture!
 
DavidTrader86 said:
Howdy!

After doing a little day trading for several years (little here and there, not consistently), and paper trading for the past couple of months (consistently, and profitably), I want to take the dive into day trading professionally.

How do y'all have your businesses set up?
I was thinking about opening up a spousal LLC, then a brokerage account in it's name. My understanding is that this would help with the qualification for TTS for the Section 475(f) election.
My understanding is that if you qualify for it, not only is there the lower tax benefit, but then you also don't have to list every single trade on your taxes, correct?

Any insight y'all can offer on the legal/structual side would be helpful.
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Almost everyone wins on the simulators but in real ife you don't get those good fills or at least not for any size.

Shouldn't you at least practice trading 100 shares live for awhile and see if you can make money?

Why (now) do you think your trades will have positive expectation?

What are your edges?

Why do you think you will be able to make meaningful money day trading?
 
Well, I just finished my first month of trading. was able to trade 15 days this month, and am up 20% on the month.
I had a few down days, my worst was my first day, second trade. I got caught in a massive short squeeze, so bad that they halted trading on the stock. By the time I was able to get my order filled to close out the trade, I had lost $900.
But overall, it was a good month trading, and learned a lot.
 
777 said:
Almost everyone wins on the simulators but in real ife you don't get those good fills or at least not for any size.

Shouldn't you at least practice trading 100 shares live for awhile and see if you can make money?

Why (now) do you think your trades will have positive expectation?

What are your edges?

Why do you think you will be able to make meaningful money day trading?
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I realized the not getting quick fills very quickly, when I started trading live. I have been keeping my positions on the smaller side because of this
 
Why do you think you have a meaningful edge day trading?


DavidTrader86 said:
Howdy!

After doing a little day trading for several years (little here and there, not consistently), and paper trading for the past couple of months (consistently, and profitably), I want to take the dive into day trading professionally.

How do y'all have your businesses set up?
I was thinking about opening up a spousal LLC, then a brokerage account in it's name. My understanding is that this would help with the qualification for TTS for the Section 475(f) election.
My understanding is that if you qualify for it, not only is there the lower tax benefit, but then you also don't have to list every single trade on your taxes, correct?

Any insight y'all can offer on the legal/structual side would be helpful.
More...
 
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