Taxes for Prop. Traders

[LelandC]

I was wondering if anyone could tell me how those folks that trade for Prop firms such as Bright, Worldco, Echo, etc are taxed? Do you receive a form K-1 at the end of the year? Do you know if the trader is responsible for paying Self-employment tax?

Any input would be great,

Leland

 

[Bryan Roberts]

yes you do receive a K-1 at the end of the year. I am not a CPA nor a tax attorney but it is my experience that there is no self employment tax due by the trader......you really need to talk to a CPA with experience in LLC's/trading or else you will be mislead.