LLC And S Corp Business Settings For Day Traders
Day traders are usually caught up between two business structures, LLC and S Corp. Both have completely different settings and with variations in taxes too. LLC or a Limited Liability Company is a setting that allows the IRS to implement high taxes for day traders because they will appear as company owners and not as employees of the said company. Under an S Corp setting, day traders will appear as employees of a company that they actually own and that they are receiving “salary” for it. The IRS will therefore implement lower tax rates if you have an S Corp business setting.
