jfarchitex

I want to caution anyone about giving or receiving advice on this subject because it is so situationally specific. For example, in many states [but not all] a single-member LLC can be started and elect S Corporation status. You loose one of the main benefits of organizing in that fashion in that you will have extra tax paperwork, but then you're in business to make money - so who cares about the paperwork volume, so long as it is managable and doesn't cost you the ability to generate revenue right? But if you're not focused on this new found responsibility and you make a few key mistakes, it can cost 'DIY'ers a pretty penny and a nasty visit from the IRS. So while establishing an entity is definitely the right move longterm for any trader who is doing this for significant income, take your time and learn what you need to execute this process properly.