Why Most Day Traders Prefer S Corps
February 20, 2012 4:37 am InvestingAn S corp is the preferred business setting of most day traders. It lets them save thousands of dollars in earnings because the IRS implements lower taxes on an S corp. If you declare your day trading business as an S corp, the IRS can only impose 15% taxes on you. It will appear that you are an employee of your own business and not an owner, therefore qualifying you as self employed. Taxes for day traders can go down further if you declare that family members are also receiving salary. You can say that they are handling admin work and other aspects of the business.
