Question: Does it make sense for investors to start an LLC?

I've been investing in stocks/bonds for years. I wouldn't call myself a day trader but I feel at this point I have enough invested where I nearly consider it a "job" so to speak. I'm wondering if it makes sense for investors to establish an LLC to invest through. Particularly, I'm wondering if it makes sense for the following reasons:

-are there tax benefits to trading stocks through an LLC or are capital gains/losses taxed the same as individuals?

-is it possible to deduct investment expenses through the LLC?

-are there any other benefits to doing this?

Finally, if it does make sense to do this, how would one go about setting up such a company and what should it look like?

Answer:

The cash flow quadrant says it all, you are investing in the wrong way, is not how much money you make, but how much money you can keep, I have an LLC and do exactly what you do, but I can deduct as much as I can, as Internet, Broker's fee, Paper, Ink, Online Financial Advices, even the trip to Walmart to get office supplies, at 50 cents a mile.

But don't go LLC just to benefit from taxation, IRS are very nosy with those business, do it because the best way to run a business, give you a liability.

The taxation for paper assets are 15%, but the difference is that you are paying 15% from the profits you made after a year, in the LLC I pay 15% from "what is left" after deductions.

Definitely LLC structure or S Corp would be a better legal entity for paper assets, in the first one you must report taxes annually and in the second one is every quarter. :)