Trading entity formation

TRADING AS A BUSINESS

By setting up a specific type of business entity for trading and trading as a business, you are able to use up to 250 different tax deductions to pay THOUSANDS less in taxes every year. We will take care of the complicated parts, schedule a consultation to learn more! 

Trading Entity formation

Keep More Money In Your Pocket

The tax code changed, and in order to utilize your trading activity for tax benefits, you need the right tax status. With the IRS, there are three tax statuses given to traders. By obtaining the correct tax status for your situation by setting up a specific type of LLC or Corporation, you could save THOUSANDS every year in taxes even if you are just starting out. Learn more about how we can help you.

LLC and corporation formation

The Three Tax Statuses For Traders

Default Trader Status

This tax status is given to traders in the market who do not have an established business. It is categorized by the IRS as a “Hobby Trader”. This is the default status given to traders.

With the change in the tax code as of 2018, “Hobby Traders” cannot deduct business expenses or expenses that are directly related to the market. Essentially, there are no tax benefits from Default Trader Status.

Active Trader Status

In order for traders to take any tax advantage from their investment activity, they must qualify as an Active Trader. In order to do so, traders must meet a litany of requirements. Most investors fail at least one of the following:

1) Must trade continually in the markets (no breaks);

2) Must have a specific volume of trades per month,

3) Must derive a majority of their income from their investment activities.

Self-Employed Trader Status

 The IRS has allowed individuals to obtain Self Employed Trader Status by trading through a specific type of business entity structure to take tax business deductions, without qualifying as an Active Trader.

With Self Employed Trader Status, Investors can take itemized deductions for business expenses, take itemized deductions for costs directly related to the market (commissions, software, etc.) travel, and capture the max portion of capital losses.

Businesses Formed

50k+

Business Taxes Prepared

25k+

Business Credit created

20M+

rating with google

5 Star

Testimonial

“5-star service. When they tell you they are putting you on the top of their priority list, they actually do. They take the time to further explain certain things and are happy to do so. I came with little understanding of what I was getting into and came out with all questions answered. The employees all are very nice and seem to genuinely care about the service they are providing. I feel this is also due to the fact that they know how big of a role they are playing in a very important part of people’s lives.”

Sean G. – Business Formation Client

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12226 S 1000 E Suite #3, Draper, UT 84020
855.577.4739

Support@primecorporatservices.com