Setting Up Your Trading Entity
So You Have Decided to Trade Inside an Entity ...
First off, make sure you read about Entities here and then ...
Make sure you are certain this is how you want to trade. Once you click the button, you will have an entity in your state that must meet all reporting obligations and perhaps pay a minimum tax. Also ...
An entity requires an Employer Identification Number - in most cases - and then the IRS will expect a tax return for that entity, which entails compliance costs.
An entity is not like a new bicycle or set of golf clubs you can buy and if you get bored hang it from the garage ceiling or put them in the attic. If you no longer trade, you must terminate the entity and there can be some definite deadlines for doing so.
I have partnered with SmallBiz.com to provide a template with suggested responses and to function as a guide to setting up your entity. Click the button below to open a new window and see the Entity Order Process.
Use SmallBiz.com to setup your entity
Click here to see a guide for Entity setup using SmallBiz.com. The guide will take you through the screens up to the payment screen.
In order to assist you in the process, download a .pdf (or click on the pdf icon at the right) of the screens you will see during the process of setting up your entity. If there is some aspect of the setup you do not understand, exit the process and research the issue, or send me an email with your question.