I am thinking about forming a LLC for tradings as I want to get some "earned income" for Future SS and Medicare benefits and current benefits such as Health Insurance and 401K contributions and Mark to Market benefits (section 475) /wash rule benefits.
My understanding is with "just LLC" all of these thing can't be achieved. One need "S corp" for benefits parts such as pay roll, 401k, Health insurance.
It is recommended for Traders to form LLC in your home state. WHY? Reason I got was it law suit protection. Not sure how?
Most C corp are formed in Delaware so why not your trading LLC (solo member) be formed in Delaware etc?
When you apply for LLC, do you apply for just for LLC or you apply for either LLC or S corp?
S corps are LLCs but where does "S" part comes at the time of filing/registering your LLC or it is part tax election. Like first form an LLC and then send IRS your LLC for 475 and tax identification number and elect S part there?
I have read both ways, People say it is S corp vs it is just LLC but it has S corp status for tax purposes. I have seen my state's secretary of state website and it has only one thing LLC?
Q. Thing I am trying to understand is are these 3 vs 2 things. I am bit confused with S part how and from where it comes.
3 Entities: LLC, or LLC with S corp status for Taxes or S corp
2 Entities: LLC or S corp
