Creating an LLC for my Trading


#1

Hello,

I am setting up an LLC for my crypto trading company. Anyone have any experience with this or any tips?

Thanks,

Ethan


#2

Setting up an LLC is super simple and cheap. Don’t use any third party like Legalzoom because they’ll charge you an arm and a leg. I made that mistake for my very first one about seven years ago, now I have five more that all cost the same as my first combined. Where are you located?


#3

Is there a link or article that you can recommend that discusses the benefits of a LLC?


#4

The benefits to an LLC is strictly related to taxes/liabilities. Depending on the business, your tax deductions can be immense and you can also save a ton on profits with the proper classification of your business.


#5

I’ve set up a bunch of corporations in the past each for fairly nominal amounts (less than $100). The key was getting the forms for free at the Secretary of State offices and having the time to go and stand in line and deal with the bureaucracy.

The biggest problem was dealing with the banks and determining what they required. For crypto select a bank solely based on their familiarity with your type of business and perhaps your prior history with them. KYC is obviously extremely important to them.

If you decide to go the stand-in-line route determine beforehand what paperwork the Secretary of State will require from you. That was a pain.


#6

I’ve never left the comfort of my personal computer in my office when setting up a new LLC.


#7

I mean ive already set it up and registered… its more on some tips that you have learned in the past that might help a fellow new crypto currencies trader :smiley:


#8

I set up an LLC in Colorado a few years ago. It was easy, you can do it online. Just go to your state’s Secretary of State website and see if they have an online application. Pay the fee. Then wait for confirmation.

As to how that affects taxes and trading I have no idea.