Business Entity Structuring for Active Traders

No two trading enterprises are the same, which means no two trader tax strategies should be exactly the same either. That’s why Trader’s Accounting does not use a cookie cutter or automated approach for your trading tax savings.

Our recommendation for your operation is based on the information you provide as the individual trader. Active trader business incorporation services are tailored to meet your unique needs for tax efficiency. Let our accountants help you determine the most advantageous entity for your trading work and make it a reality!

The first step to incorporating your trading business and optimizing your tax return is to determine your trader tax status.

Trading tax law can be confusing. Without the help of a specialist, you may not be able to determine whether you meet the definition of a trader in securities per IRS and tax court guidelines. The vague guidelines that are given to help you make this determination will likely leave you with many questions, such as:

  • How long can I hold onto my positions?
  • How often do I have to trade?
  • How many trades does it take to be considered substantial activity?
  • If the market is not conducive to my trading strategy, how long can I stay out of the market without bringing my continuity and regularity of trading into question?