LLC

[v90enterprises]

Will opening an LLC reduce taxes as an Options trader versus just trading under a personal account? Also would it need to be foreign filed since the business is computed based?

[Anonymous_]

No, creating an LLC would not reduce your federal income tax liability as opposed to simply trading under a personal account and reporting on your individual income tax return (1040). 

[TimS5]

High V90enterprises!  

Your question is two-fold - First, can you save taxes doing your options trading through an LLC versus reporting it on your schedule C.  If you are a single member LLC, the LLC is normally treated as a disregarded entity and reported on you Schedule C.  If you are a multi-member LLC, depending on how the LLC was formed, it would be treated as a Corporation or a Partnership.

As a US Citizen, you are responsible for reporting your world-wide income on your Form 1040.   This would apply whether or not you are based in he US or in a foreign country.  If you are based and working in a foreign country, the income earned in that country would be subject to that countries rules and you maybe eligible for the foreign income exclusion or foreign income tax credit/deduction.

LLC Tax Filing Rules - TurboTax Tax Tips & Videos - Intuit will provide additional guidance in regarding your LLC.

[v90enterprises]

Thank you! For clarity with foreign file I meant if my LLC is formed in Nevada but I live in Florida and trading on my computer, would I need to file the separate foreign since i operate in a different state or does that not matter since my business is online?

[Anonymous_]

Neither Florida nor Nevada levies an individual income tax and this scenario does not affect your federal income tax filing.

You would most likely have to file an annual report with the State of Nevada.