Entity Formation

Conducting your trading business in a entity unlocks several additional tax benefits.

We offer our entity formation service to retail and proprietary traders. Read Entity Solutions For Traders.

Before you sign up for our entity formation service, please have an initial 30-minute consultation with Robert A. Green, CPA or Darren L. Neuschwander CPA to determine if an entity is right for you. For example, some traders may not qualify for trader tax status and an entity requires TTS for business tax breaks.

If you trade other people’s money (investors), it’s considered investment management and we recommend an outside law firm. Read Investment Management Services.

Choose our service level below

Trader Entity Formation – Basic Service: During your initial consultation, we recommend the best entity strategy for your particular circumstances and goals. During the entity formation meeting, we:

  • Finalize the entity plans and form an LLC or corporation using our BizFilings services (see below). (General partnerships don’t require a state filing.)
  • We go through formation and start-up tax issues including ownership percentages with a spouse, profit-sharing special allocations, initial capital contributions, and tax elections (S-Corp, Section 475 MTM securities, Section 988 forex). We also cover employee-benefit plan deductions (retirement and health), payroll planning, tax strategies including Section 195 start-up costs and Section 248 organization expenditures, banking needs, accounting solutions and expense reimbursement (accountable) plans.
  • It’s all included in our basic service and price, which also includes follow-up questions.
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Trader Entity Formation & Tax Compliance Package: Most clients who use our trader entity formation service engage us for our entity tax compliance service. We design our trader entity formation strategies and structures for maximum tax benefits, and it’s important to use our tax compliance service to collect those tax breaks on your entity tax return. Don’t let the tax breaks fall by the wayside by not attending to them on a timely basis, like executing payroll and employer Solo 401(k) retirement plans before year-end. We assign a CPA from the start to answer your questions on tax planning, which is an essential element in our tax compliance service. Many clients need our help ASAP on capitalizing the company, contributing fixed and intangible assets, recouping expenses with Section 195 startup costs, accounting issues and more.
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Trader Entity Formation, Tax Compliance & Accounting Package: Securities traders should consider adding our accounting services to the entity package. A good outcome on our tax compliance service partially depends on the quality and timeliness of your accounting solutions. Whether your company uses the realization method with wash sale loss adjustments, or Section 475 MTM ordinary gain or loss treatment, trade accounting results are critical. Learn more and buy now.

BizFilings online incorporation service

We use bizfilings.com for forming LLCs and corporations in all states. We don’t need an online incorporation service for creating general partnerships. We use their service during our meetings, and the client pays the cost directly by credit card. (We are a long-term paid affiliate of BizFilings, owned by Wolters Kluwer.)

Outside attorney service for legal paperwork

We are not a law firm, and you should consider engaging an outside attorney for legal services. We’ll recommend an attorney that has worked with us for many years, and she can handle execution of the legal paperwork, including:

  • Corporations and LLCs: the online application for federal EIN (tax identification number); guidance on applicable local laws about tax registration. For LLCs: customized standard operating agreement and resolutions for those electing or considering S-corp status; preparation of state and federal S-corp election. For corporations: customized standard bylaws, minutes of the first shareholder meeting and resolutions; resolutions for those electing or considering S-corp status; preparation of state and federal S-corp election.
  • Partnerships: name check, guidance on the applicable local law on fictitious business names (FBNs), online application for EIN, advice on the local applicable law about tax registration, customized standard partnership agreements and resolutions.
  • Disclaimer: Our outside attorney and BizFilings advise clients throughout the U.S. Some issues vary by state, county, city and town jurisdiction. Consider getting local attorney advice for compliance when appropriate. There are other issues to consider like local property taxes, too.
  • Price: Our outside attorney charges $225 for most of these engagements, except if you have a profit-allocation clause it’s $325. During the entity formation process, we will email you a link to the attorney’s website for engaging her.

Total Costs:

Our trader entity formation fee is $350. Our outside attorney is $225. The total is $575 for a general partnership.

For an LLC or corporation, including with S-Corp election, add the bizfilings online incorporation fee of $99, plus $60 if you want it expedited. State filing fees vary, and the average is around $125. Total is generally under $900, including our cost and the outside attorney, too.

If you have any questions about our trader entity formation services, please contact us.

We look forward to working with you soon,
Managing Members Robert A. Green, CPA and Darren L. Neuschwander, CPA

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