Looking at starting daytrading - wondering if my taxes would be better under an LLC or as an individual making income from short term capital gains?

[Anonymous · Accepted solution]

The IRS has three classifications for stock trading.  As you'll see in:  https://www.irs.gov/taxtopics/tc400/tc429, only dealers can be individuals or businesses.  An LLC set up under state law as a partnership or corporation can be a dealer.

There are tax advantages for traders.  However, even if you satisfy the requirements to be a trader, the IRS considers a single-member LLC the same as a sole proprietor:  https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-compan...   

[fanfare]

If you are going to dabble in day trading, you are an individual investor.  
To qualify as a professional trader, the IRS sets a very high bar.