Quote from kcgoogler:
I've done a bit of reading in the past about LLC vs Corp vs Nothing and here is what i found:
Corp: bad because you will have to pay double taxes
LLC: advantages
1. business deductions
2. personal liability protection
3. can write off losses in addition to $3000 against your other ordinary income.
4. Legal entity (auditible by 3rd party vendors); more about this..
You can get benefits 1 and 3 by simply filing as a trader and choosing markt to market. Liability protection is not important for the trading business; it mostly for businesses involving machinery etc where someone can get hurt and sue you.
The only advantage that i know of that is left with LLC is you have a form that you can provide an audited record for. So 3-4 years down the lane it would be somewhat easier to get funded externally; but recently i found there is another way of getting this funding; simply by going prop and using the 1:10 - 1:20 leverage you get. In some ways its better because you dont need to deal with the headaches of LLCs corps etc but its somewhat less secure (not insured).
So if anything LLC is good for this last reason. I myself am not able to decide whether the additional work is worth the effort.
-gariki
