Hey there, first post in the forum - love the site, it's great! Does anyone know a good CPA who knows futures trading in Houston, TX?

Craig

I was wondering if any NexusFi (formerly BMT) member could offer their experiences in setting up an official trading business. My interest is as follows: I have an LLC and this LLC has been active in other business activities. The IRS states for every business activity as a LLC or sole proprietorship in a given year, needs it's separate Schedule 'C' for your 1040. Makes sense. I was talking to a person (salesman) at TradersAccounting.com. I told him this year my old LLC is in the trading business and just trading and hence, I would file my 2010 Schedule 'C' as a trading business since my state documents states I am allowed to do any activity I choose. The TA.com person said "not so", your state filing needs to be specific and the LLC must have never engaged in other activities where your TIN has been associated. Well there is a $1000 difference from what I was thinking and what he was saying. Regardless of the conflict of interest, I decided to file an addendum to my state documents and get a new TIN from the IRS for my same old LLC for 2011 trading.

If any other member has any experiences or comments to share. Special document wording for trading. Business setups. I am interested in reading about them. Thanks!!

Please see this thread:

Taxes - Sole Prop or LLC What is the current view on Sole Proprietorship versus LLC for setting up your trading business for taxes? I would think the former would be fine for most of us. tia :)

Or this one:

The Tax Thread I thought we could use a thread devoted to Taxes. This is all things taxes regarding trading. One example, Advantages/disadvantages for different situations (equities, futures, forex, etc) as well as benefits of filing sole-proprietor vs LLC or as a …

Mike