What is a good website to read about the pros of cons of setting up a company for day trading stocks?

Question

I've been unable to find such a thing by searching. I'm not going to day trade per se, but I do think I should form an LLC for my market investments, and I would like to know the pros and cons (tax advantages, how I would pull money out, what the tax rate is, expenses, etc.) I am in the US... would prefer a site, as I'd like ot read alot about this in detail if possible! Thanks!

Answer 1

The cheapest way to go

You can get basic LLC information from the internal revenue service, they have books regarding the tax advantage/disadvantage of LLC, sub chapter 3, MLPs, etc

Go to their website and just read carefully,

There are associations of investment clubs, that will also help you decide.

You may have to register the name with the Secretary of Corporations for your state - but so what, it's worth it and again they will give you free advice,

good luck

WHAT?  gave you a lot of information, some of it worthless, there are many traders trading with fictitious name accounts, and they are doing very well for themselves and have been doing it for years.  - this is from 45+ years experience

Answer 2

This is just stupid (no offense).

Depending on what you invested in, you could have to register with the SEC.  Additionally, you would be signing up for double taxation!  You would have to pay additional legal and accounting fees, and could have your quarterlies audited by the IRS.

There are absolutely no advantages to this scheme.  Never mind that if you tried to become a trader for a living, you would become homeless, as more than 90% of "day traders" lose more than 2/3 of their capital in the first year.

Not to mention that this would look a h**l of a lot like money laundering to an outsider (someone who creates a shell holding corporation to avoid having his name attached to the movement of significant amounts of cash moving across state lines is a pretty good way to meet some kind agents from the FBI).

It's never a good idea to try to outsmart the federal government - sure, they might not be the smartest bunch in the room, but they sure know how to hold a grudge.