What are the benefits of starting a trading business vs just trading?

R

RGLD

Short term cap gains are taxed as ordinary income. I am already filling out a 10-99 to write off expenses.

So I even start an LLC or LLP or Partnership? Are the benefits really there?
 
I highly suggest talking to an account that works with self-directed traders who do it as a profession. This would give you an insight how gains/losses are treated and expenses around that LLC.
 
Deductible health insurance, better retirement plan options, you can "pay yourself" a stable income and qualify for income-based things like mortgages or HELOCs after a few years. Business expenses I think are the same either way, but not 100% sure.

Personally, I'd focus on the trading. If that's going well, this stuff is small money compared to expanding or improving your trading.
 
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