Entity Tax Consultation


Conducting your trading business in an entity unlocks several additional tax benefits.



Our entity tax strategies require eligibility for trader tax status (TTS). With TTS, an individual or entity can deduct business, start-up, organization, and home office expenses. An S-Corp is necessary for a TTS trader to arrange the owners’ health and retirement plan deductions. LLC/partnerships or S-Corps help ring-fence trading positions vs. overlapping investments. The SALT cap workaround strategy allows pass-through entities (partnerships and S-Corps) to save taxes. See more on our Entity Solutions page and June 2022 blog post and Webinar for “How to Set Up a Trading Business for Optimal Tax Savings.”

The Entity Tax Consultation is a 60-minute meeting with Robert A. Green, CPA, by phone, Skype, or Zoom. It includes:

  • Determine if your trading entity will be eligible for trader tax status (TTS), which is a requirement for the trader tax benefits.
  • First and foremost, is an entity cost beneficial to you: Do the tax benefits exceed the costs? Many traders think they need an entity when they don’t, or they can wait longer to form one.
  • Choice of entity focusing on tax benefits: Single-member LLC taxed as a disregarded entity, LLC taxed as an S-Corp, spousal-member LLC taxed as a partnership, a corporation taxed as an S-Corp.
  • State of formation for an entity, usually in your home state where you have nexus (live, work, and trade).
  • Tax treatment when a spouse is an active owner vs. a non-active spouse.
  • Tax advice on considering a  Section 475 election on securities and/or commodities by internal resolution within 75 days of inception.
  • Tax strategies in arranging health insurance and retirement plan deductions via payroll in an S-Corp.
  • Tax attributes of different retirement plans like an S-Corp Solo 401(k) vs. other types of programs.
  • Advice on capitalizing start-up costs and entity organization expenditures.
  • Advice on accounting solutions that fit your needs.
  • Tax advice on using an S-Corp accountable (expense) reimbursement plan.
  • Tax advice on how partners can deduct “unreimbursed partnership expenses” (UPE).
  • Tax advice on a ring-fencing solution: TTS trading with Section 475 in an entity, separate from investments on the individual level without 475.
  • Tax advice on using a SALT cap workaround strategy in twenty-plus states.
  • Tax advice on state and local income taxes that apply to a TTS partnership or S-Corp in your home state. Some states exempt a trading entity from state and local taxation.

This entity tax consultation does not include an entity formation service.

If you have any questions, don’t hesitate to contact us at info@greentradertax.com.

Robert A. Green, CPA
CEO, Green & Company, Inc.