put another way as an investor, trading securities is not a business. therefore none of the profits is earned income. in addition, without earned income no pension contribution, no deduction for self-employed health insurance and investment expenses, except margin interest, would not be deductible for federal income tax purposes.
another downside as an LLC, unless it is in a community property state, is that an annual partnership return would probably need to be filed since there is joint ownership of the assets, this wouldn't change how things are taxed.
but perhaps you are a trader which would change things. talk to a tax pro who can properly analyze your situation.
