LLC Brokerage

ryan shaw said:
I have established an LLC taxed as an Scorp, what is the best brokerage to use to trade with under this? Can i just trade under the optionshouse account I already have? Or do I need to setup a new account under the LLC?
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I don't want to deviate from the thread, but when do you know it's time to switch from trading your own personal account....to registering as a business name/account? o_O
What/are there tax benefits?
 
lawrence-lugar said:
I don't want to deviate from the thread, but when do you know it's time to switch from trading your own personal account....to registering as a business name/account? o_O
What/are there tax benefits?
More...

Basically the IRS looks and a single-member LLC as a sole proprietorship. You will have to consult an accountant, but I believe it's easier to expense items with an entity rather than a personal account .
 
@rmorse is right. You are a "professional", and have to pay significantly higher fees. But, try your luck if you have broker flexibility or you luck out with your preferred broker. TradeStation might let you be non-pro if you say it is just you. Deep Discount Trading / Wedbush might. It depends, if the person responsible for setting it up is willing to let it slip. No harm in trying. It is a difference of at least $1k+ per year just for futures. Much, much more if you trade stocks too. Interactive Brokers will NOT allow this under any circumstances.

At they end of the day, it is a goddamned checkbox somewhere. It's not like your data will be any different. Just a way for the exchanges to get more money.

How do I know? Because I was able to / not able to with the 3 brokers I mentioned ;)
 
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