Need help with stocks, taxes, and my LLC

[kswag934]

Hi everyone. My name is Keith and I am in the process of setting up a LLC in Maryland for trading stocks and a website I run for stock analysis. I have some beginner questions on how I should run shop but first I will give you some more background.

I use TDAmeritrade as my broker currently and I have a personal account set up. However, once the LLC is up and running I plan on switching to a specialty account account hooked to my LLC (so that I can deduct more than $3000 in losses). I have approximately $12,000 in my account right now but I will be receiving a $25,000 gift from my mother in the near future. This should allow me to set up a margin account and get cleared as a day trader. I have not set up a business bank account yet for my LLC, nor do I know what the best way to go about doing this is. I have a personal checking account right now where all of my bills are deducted from. I withdraw funds as needed from my TDAmeritrade account to the personal checking to pay my bills.

My questions are as follows:

1. How do I go about getting a Tax ID for my LLC?

2. Do I need to pay quarterly taxes on my earnings? Since I haven't thus far (started trading in June), am I looking at a penalty coming up?

3. Is it possible to pay bills directly from my LLC business bank account that I would be setting up? Is that legal? If not, what would be the most cost-efficient way of doing so? Basically, should I transfer my TDAmeritrade funds to my personal checking or business checking?

4. How do I give the $25,000 gift back to my mother untaxed since I will be placing it in my LLC?

5. What's the best way to get a business bank account for my LLC? Same as a personal bank account I'm assuming? Just walk in the bank and link it to the LLC?

As you can see, I'm quite novice with this business and tax aspect but any help will be much appreciated. Thank you in advance.

[KTP]

Step 1: Have your mother give you half the 25,000 this year and half at the beginning of next year so she does not owe any gift tax.

Step 2: Use the 25,000 to go to business school where you can learn how to lose other people's money instead of your mother's money and get rewarded for doing so in the process.

[banditfist]

I am also in Maryland.
Why do you want to set up an LLC? You are not dealing with near enough cash to even come close to getting the tax advantage of it. Additionally, $25k will only meet SEC regs for avoiding the pattern day trader. You need many times more than that to really do day trading.


If you insist, you need to set up the LLC in Nevada. There are companies that will provide you the mailbox and the license fee is under $100 per year. If you must you can go to Vegas for your board meeting as well.