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Learn Why Successful Traders Use an LLC for Their Trading Business

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

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Learn Why Successful Traders Use an LLC for Their Trading Business

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  1. Learn Why Successful Traders Use an LLC for Their Trading Business

  2. Traders Accounting • www.tradersaccounting.com • learn@tradersaccounting.com • 800.938.9513 15396 N. 83rd Ave Ste. D-100 Peoria, AZ 85381

  3. 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.

  4. Deduct Business (Trading) Expenses • Two Tax Systems in America • Personal • Business

  5. 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”

  6. Expenses a Trader Business Might Have

  7. Why Asset Protection?... Lawsuits (20,000,000/yr. $200,000,000,000/yr.) Unprotected Assets & Income

  8. 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

  9. LLC = Asset Protection Only LLCs with 2+ members get charging order protection Warning: Fraudulent Conveyance (don’t wait) $$$$

  10. 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

  11. 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

  12. Questions • Contact: Jim Crimmins • 800.938-9513 ext. 213 • E-mail: Jim Crimmins • jcrimmins@tradersaccounting.com

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