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EDUCATION CENTER INTERACTIVE: GTT MESSAGE BOARD Traders >> Entities Pages: 1 Previous   Index   Next   Flat   Threaded   dc10 stranger Reged: 02/17/07 Posts: 2 SMLLC RFC q       #627 - 02/17/07 07:54 PM Edit Reply Quote First off, just read your book. Best money I've ever spent. Really thorough and informative. Answered a lot of my questions. I'm thinking of starting a SMLLC for my regulated future contracts trading. I was/still thinking of just being a sole prop w.o mtm 475 due to the 60/40 gains and no SE tax. However, I understand that you can't have a retirement account or write off health insurance costs. If I were to setup a SMLLC my earnings would be subject to SE tax right? And would I not be able to use 60/40 either? I just am not sure whether being able to have a retirement account/ health insurance writeoffs justify the SE tax and possibly the loss of 60/40 on gains. Post Extras:       dc10 stranger Reged: 02/17/07 Posts: 2 Re: SMLLC RFC q       #630 - 02/23/07 08:46 PM Edit Reply Quote any help here? Post Extras:       GreenGTTCPA CPA & CEO Reged: 10/31/03 Posts: 275 Re: SMLLC RFC q       #632 - 02/25/07 10:45 AM Edit Reply Quote Thanks. You can retain 60/40 by not electing IRC 475 MTM. As a SMLLC, you have 2 schedule Cs; one for trading expenses and the other for your administration fee paid by the 1st Sch C. Only the administration fee is earned income subject to SE tax and the rest of your trading gains are exempt from SE tax (unless you are an exchange member). We prefer the multi member LLC which uses a guaranteed payment, as the 2 Sch C strategy can be challenged by the IRS as a disregarded entity. It works, but the partnership return approach (multi member LLC) is safer. Consider a consultation to discuss this all and deploy the strategies if you have more questions. -------------------- Robert A. Green, CPA & CEO GreenTraderTax.com Post Extras:       Pages: 1 Previous   Index   Next   Flat   Threaded   Extra information Permissions Misc 0 registered and 3 anonymous users are browsing this forum. Moderator:  NeuschwanderGTTCPA  Print Thread · You cannot start new topics · You cannot reply to topics · HTML is disabled · UBBCode is enabled Rating: Thread views: 9709 Rate this thread Jump to 1 star 2 star 3 star 4 star 5 star *Traders* -----   Trader Tax Status   Mark to Market (MTM) Accounting   IRS Exams   Trade Accounting   Retirement Plans   Entities   Self-Employment Tax*Investors* -----   Investors - General Questions*Hedge Funds* -----   Accounting & Software   Tax, Audit and Business*Proprietary Trading* -----   General issues & Pros/Cons of proprietary trading   Tax issues if working for a proprietary trading firm UBB.threads™ 6.3.2