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Built for Prop Firm Traders

Set Up Your Trading LLC + S-Corp the Right Way

Done-for-you LLC formation, EIN, operating agreement, and S-Corp election — built specifically for traders running Apex, TopStep, Tradeify, FTMO and other prop firms. Cut self-employment tax, protect every eval-fee deduction, and stop drawing IRS attention.

$5K–$25K
Avg. annual SE tax savings
7–14 days
Filed & ready to operate
$297+
Plus state filing fee
Updated July 2026 · CPA-led, not template-based · How we protect your data →
Key Takeaways — Trading LLC & S-Corp Setup
  • Done-for-you entity setup built for traders — name check, Articles of Organization, EIN, custom Operating Agreement, and the Form 2553 S-Corp election, across three tiers starting at $297 + state filing fee.
  • The ~$80K threshold: an S-Corp election typically starts making sense around $80K+ in net prop or self-employment income, where SE-tax savings commonly run $5K–$25K per year.
  • What's included at a high level: entity formation, IRS registrations, governance documents, and election filings — standard filing typically lands in 7–14 business days, expedited in 3–5.
  • Election timing matters: existing entities typically face the March 16, 2026 Form 2553 cutoff for current-year S-Corp treatment, while newly formed LLCs typically get a fresh 75-day window.
  • Every situation varies — the process starts with a conversation, and a TraderTax-matched CPA confirms whether an LLC or S-Corp actually fits before anything is filed or paid for.
Free · 60 Seconds · Ballpark Only
See what an S-Corp could save you

Plug in net trading income and the free calculator shows the typical SE-tax savings an S-Corp election could unlock. Estimates only — every situation varies, and a CPA confirms the real number.

Run the Free Calculator → Or get a full AI Tax Snapshot →
Why a Trading LLC

The structural mistake almost every prop trader makes

Running prop firm payouts through your personal Schedule C costs you self-employment tax on every dollar — and weakens every deduction you try to take.

📉

Cut SE tax

S-Corp election lets you split prop income between W-2 salary and distributions. Distributions skip the 15.3% SE tax entirely.

🛡️

Protect deductions

Eval fees, platform fees, monitors, education — all become unambiguous business expenses paid by the LLC, not "stuff you bought."

🏛️

Lower IRS scrutiny

$10K of "miscellaneous" deductions on a personal Schedule C looks like a hobby. The same expenses through an LLC look like a business.

📊

Open retirement accounts

Solo 401(k) and SEP-IRA contributions become available — sheltering tens of thousands more per year from tax.

Choose Your Tier

Pricing that fits where you actually are

Prices below cover TraderTax's setup work. State filing fees ($50–$300+ depending on your state) pass through to you at cost. Talk to a CPA first — we'll quote you exactly after the call, no payment until you decide to move forward.

⚠️

California traders: The state charges an $800 minimum franchise tax annually on every LLC, regardless of income. We'll factor this in and walk you through whether forming out-of-state actually helps in your case.

Basic
For traders who just need the legal entity in place fast.
$297
+ state filing fee
LLC formation filed with your state
Articles of Organization preparation
Name availability check
Standard 7–14 day filing
× EIN registration
× Operating Agreement
× S-Corp election
Talk to a CPA →
Premium
For traders earning $80K+ in prop income who want maximum tax savings.
$997
+ state filing fee
Everything in Standard
S-Corp election (Form 2553) filing
Reasonable compensation analysis
Expedited 3–5 day filing
60-min CPA tax planning session
Solo 401(k) / SEP-IRA setup guidance
Year-1 quarterly tax estimate
Talk to a CPA →
How It Works

From signup to operating LLC in under two weeks

1
Quick intake
5-minute questionnaire about your trading and what state you're in.
2
CPA reaches out
Within one business day. Walks you through pricing, your state's fees, and whether the S-Corp election makes sense.
3
We file
Articles of Organization, EIN, Operating Agreement, S-Corp election if applicable.
4
You operate
Get your formation docs, open the business bank account, route prop income through it.

Optional last step: most LLC clients bundle tax filing too — a TraderTax-matched CPA who already knows the entity handles the returns, quarterly estimates and all.

FAQ

Common prop trader LLC questions

Do I really need an LLC if I'm just running a couple Apex accounts?

Probably not yet — under ~$40K in net prop income, the savings rarely beat the setup and admin cost. Where it absolutely starts to matter is when you're paying $5K+ per year in evaluation fees, generating regular payouts, or running multiple firms simultaneously. Use our free Tax Snapshot if you're not sure.

What state should I form my LLC in?

Almost always your home state. The "Wyoming/Delaware LLC" hype online doesn't apply to solo traders — forming out-of-state usually creates the obligation to register as a foreign LLC in your home state anyway, which means double fees. The exception is California, where the $800 annual franchise tax sometimes pushes traders to form elsewhere. We'll walk you through your specific situation.

What's actually included in the state filing fee?

That's the fee your state charges to officially register the LLC. It varies by state — Kentucky and Mississippi are around $50, Massachusetts is $500+, most states are $100–$200. We pass it through at cost and tell you the exact amount once you tell us your state in the intake.

Should I get the S-Corp election (Premium tier)?

If your net prop income is over ~$80K/year, the math typically works strongly in its favor — SE tax savings commonly run $5K–$25K+ annually, typically covering the added complexity and our fee many times over. Between $40K and $80K it's borderline; below $40K it usually doesn't make sense yet. The Premium tier includes a reasonable-compensation analysis so the salary gets set correctly, and the CPA call confirms fit before anything is filed.

How long does it actually take?

Standard filing is 7–14 business days end-to-end (most of that is waiting on the state). Expedited filing (Premium tier) cuts it to 3–5 business days in most states. EIN comes through the IRS within 1–2 business days once we file Form SS-4.

Can I move my existing prop firm income into the LLC mid-year?

Yes, but the cleaner the cutover the better. Best practice: form the LLC, get the EIN, open the business bank account, then point all new prop firm payouts to the LLC starting from a clean date. Pre-LLC income stays on your personal Schedule C; post-LLC income flows through the entity.

What if I already have an LLC but want to add the S-Corp election?

We do that too — Form 2553 standalone filing is included in our Premium tier or available as an add-on. There's a 75-day window after forming an LLC, plus a March 16, 2026 cutoff (the usual March 15 falls on a Sunday) for existing entities to elect S-Corp for the current year — timing is typically the piece traders miss.

Do you handle ongoing bookkeeping and tax filing too?

Yes — that's our core service: returns handled by TraderTax-matched CPAs who specialize in trader taxation. Most LLC clients also bundle our File It / Optimize It / Strategize It tax prep packages, and the Premium LLC tier includes a 60-min CPA session to plan year-1 quarterlies and discuss whether bundling makes sense.

Keep Reading

Entity & trader tax guides

Trade with one of these firms?
Apex taxes → TopStep taxes → Tradeify taxes → FTMO taxes →

Updated July 2026. This page is informational only and not personalized tax or legal advice — every trader's situation varies, and a CPA confirms what actually fits. Formation work is performed by independent licensed CPAs and registered agents. Curious how client data is protected? See our security practices.

Ready to Talk?

Talk to a TraderTax CPA today

5-minute intake, then a CPA who specializes in trader entity setup reaches out within one business day. No payment now — just a real conversation about whether an LLC fits your situation.

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Setup runs $200–$800+ depending on state and tier · No obligation · CPA-led, not template-based