I guess I should ask my accountant. Still - I was wondering if anyone would like to share experience filing stock/options trading under a corp. or LLC, or Limited Partnership - as I was advised to do for limiting liabities, asset protection, tax savings (are there really any?). 

I trade for several years and still file personal tax return. Never seriously thought about changing this. Maybe, because of lack of information. What are the advantages and disadvantages of having one's portfolio under the company's name? Which formation is better for this purpose: Inc., LLC, LP?  I understand that if I take on margin everything I can and the trade will fail, I guess, my personal assets will be immediately threatened. Right? What else is at stake? There are not enough money in my assets to pay back - and I go to prison :( But, really, what are the advantages for trading under the company's name? Any tax advantage?.. Isn't the corp. tax is 35% flat? Does S, or C election makes a difference in tax for cap gains for a single trader owning the company? Any feedback will be appreciated.

You would be protected say if you were selling puts or calls. Why would you take on risky bets anyway? Would you not be taxed twice corporate and personal? Who gave the Advice! You now know this person is not worthy to be listened to. You could however open margin accounts at other brokers that give you much more leverage than Trade King and make some really high payout bets and if they fail file bankruptcy. You could also run up your credit to outlandish levels and bury the money in the back yard after giving me a map and a year later declare bankruptcy. Personally I am in favor of the back yard idea. As far as I know no one has gone to prison for not paying the broker.

Lots of ways to make money, but LP would be the one you would chose paying yourself a salary, why you would want to be taxed as personal income I have no idea? Who might I ask would be your partner in this corporation? Answer that and you will find the money on the map in your back yard.

Thanks, everyone!

(I'll take into consideration the backyard idea, snowman. But no map sharing under any circumstances!)

Actually, I got that advice from the teacher of the class I took a few years ago for options trading.  He did have his weighted points on why we, the traders, suppose to trade through the company. But I do not remember everything he said except for those reasons above. That's why I kept thinking about it time from time, but still never took any steps to incorporate as a trader. 

You know I had some of the same thoughts as you. I am disable and finally decided to go out on disability for good this year. I was so worried about my trading profits affecting my disability benefit with medical coverage being my primary concern. I even thought of opening a corporartion and putting everything in the name of that corp.

But there simply is no tax advantage for me to do this. I can't see giving those dirtbags in the IRS anymore money than I already do. I would have to shoot myself if I had to pay them twice, once forthe business and again for a personal income! Yep, they got us over a barrel all right!

Just my thoughts.......

Back yard idea is reality in one sense. If you were not going to touch this money for 20 years lets say then I believe if the company was set up correctly there could be a tax advantage. I repeat could be, my guess is taxes on this sort of investment will increase so pay them now not later, however that is my opinion.

I'm not smart in this area - I spent 15 minutes looking and came up with this company.   Likely they would have answers about this topic.    I don't vouch for them, but you might find answers from them.

  http://www.tradersaccounting.com/traders-accounting-software.php

Tax Guide for Traders:

www.fairmark.com/traders