Trader Tools
Compare & Decide
LLC vs S-Corp vs Trust — see which structure saves the most tax and offers the best protection for your trading business.
| Feature | Sole Proprietor | LLC | S-Corporation |
|---|---|---|---|
| Self-Employment Tax | 15.3% on all profit | 15.3% on all profit | Only on reasonable salary |
| Liability Protection | None - personal assets at risk | Strong protection | Strong protection |
| Tax Flexibility | Limited | Can elect S-Corp status | Built-in savings |
| Setup Complexity | Simplest | Moderate | More complex |
| Ongoing Maintenance | Minimal | Annual reports | Payroll + filings |
| Best For | Hobby traders | Most traders | High-profit traders |
Sole Proprietor
Simple but risky — you and your business are the same entity.
- No liability protection
- Full self-employment tax
- Simplest to maintain
MOST POPULAR
LLC
Best balance of protection and flexibility for most traders.
- Strong liability protection
- Can elect S-Corp status
- Flexible tax treatment
S-Corporation
Maximum tax savings for high-profit trading businesses.
- Lowest self-employment tax
- Strong liability protection
- Requires payroll setup
Not Sure Which Is Right for You?
Every trader's situation is different. Our AI Counselor can analyze your specific circumstances and recommend the best structure.