140 likes | 286 Views
Learn Why Successful Traders Use an LLC for Their Trading Business. Traders Accounting. www.tradersaccounting.com learn@tradersaccounting.com 800.938.9513 15396 N. 83 rd Ave Ste. D-100 Peoria, AZ 85381. Why Form an LLC to Trade in?. Deduct expenses Provide asset protection
E N D
Learn Why Successful Traders Use an LLC for Their Trading Business
Traders Accounting • www.tradersaccounting.com • learn@tradersaccounting.com • 800.938.9513 15396 N. 83rd Ave Ste. D-100 Peoria, AZ 85381
Why Form an LLC to Trade in? • Deduct expenses • Provide asset protection • Make the mark to market election (if appropriate) • Become a better trader by treating your trading as a business.
Deduct Business (Trading) Expenses • Two Tax Systems in America • Personal • Business
What Are Deductible Business Expenses? • According to IRS Publication 535 “to be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your industry, a necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary”
Why Asset Protection?... Lawsuits (20,000,000/yr. $200,000,000,000/yr.) Unprotected Assets & Income
Assets & Income If you or a family member were sued personally Trading Account Income in an LLC Rental Income inside an entity Trading Account Assets in an LLC Personal Assets Personal Income
LLC = Asset Protection Only LLCs with 2+ members get charging order protection Warning: Fraudulent Conveyance (don’t wait) $$$$
Mark to Market • Accounting method • Only electable by a business • Election can be made 75 days from the set up of your LLC • What it does • Converts Capital Gain or Loss to ordinary income • Does away with wash sales • Can by elected for stock trading and not for futures
Physiological Aspects of Trading as a Business “I have been a traders coach for the past 22 years. In my experience as a coach, I have found that one of the major reasons top traders succeed is that they recognize becoming a trader is an entrepreneurial endeavor. Planning for the business of trading gives a trader a road map for success. It also sets the foundation necessary for the commitment to becoming a disciplined professional trader.” Adrienne Toghraie, Trader's Coach Trading On Target
Questions • Contact: Jim Crimmins • 800.938-9513 ext. 213 • E-mail: Jim Crimmins • jcrimmins@tradersaccounting.com