If you work as a day trader, incorporating your enterprise is a smart move. There will be a lot of considerations for you to make as you begin to make your business official—what type of entity you want to be, who (if anyone) will help you with operations, and which state is the most ideal… Read more »
When you decide to take your day trading business to the next level, there are a number of legal entities you can choose to form for tax and legal purposes. Establishing a formal business for your day trading enterprise can provide you with some tax advantages at year-end, helps separate and protect personal assets, and… Read more »
Owning and operating your own business can be stressful, especially if you’re already dealing with the hectic, fast-paced workload of a day trader. However, creating a professional entity that can be taxed as a partnership—such as an LLC—for your trading business does have a number of benefits to consider.
It’s essential to have a common understanding of what expenses traders can deduct, what constitutes day trading income, and what particular rules apply if the IRS considers you a qualified active trader. What matters most is that you’ll need to know what tax forms to fill out and when they’re due. At Traders Accounting, we’re… Read more »