Capital gains as a person or as an LLC
Hi, I trade in the stock markets a lot and generate significant amounts of taxable capital gains most years. That is my main source of income. My question is as follows: should I continue doing what I am doing right now - which is basically doing all the trading in accounts under my name and pay the taxes on the capital gains on my personal income tax return? Or should I create an LLC (or an S corp), open brokerage accounts in the LLC's name, transfer my assets to the LLC, have the LLC accrue all the capital gains and account for it either on Schedule C on my tax return or prepare a separate tax return for my LLC?
Is there any point in having an LLC accrue capital gains rather than me as a person? Would I be able to get some other benefits because of the LLC method (such as being able to contribute some of those gains to a 401(k) as part of my compensation from the LLC or something like that)?
Thank you for any thoughts you may have about how to structure this for the best benefit.
Posted Dec 10, 2025, 2:51 PM UTC