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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
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.

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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.

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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.

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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.
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, almost certainly yes — the SE tax savings typically run $5K–$25K+ annually, easily covering the added complexity and our fee many times over. Between $40K and $80K it's borderline; below $40K usually doesn't make sense yet. The Premium tier includes a reasonable-compensation analysis so you set the salary correctly.

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 15 cutoff for existing entities to elect S-Corp for the current year. Don't wait.

Do you handle ongoing bookkeeping and tax filing too?

Yes — that's our main service. Most LLC clients also use our File It / Optimize It / Strategize It tax prep packages. The Premium LLC tier includes a 60-min CPA session where we plan year-1 quarterlies and discuss whether you want to bundle.

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.

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