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Don't know if this even remotely answers your question but have thought about this quite a bit since selling my business as an IT consultant.
I'm not handling my trading as anything other than investment. I only trade futures so all I get is a single 1099 at the end of the year. I don't have to worry about any business taxes of any kind like I did when in business. Only receiving a 1099, my income tax preparation is considerably simplified. Don't have to do a schedule "C" nor do I have to file Corporate tax return.
Further, this is something I may or may not be concerned about when I become eligible to draw social security. Under my scenario, I'm not an employee of anything so I'm not limiting my ability to draw the full social security entitlement. If I was an employee which I think I would be under sole proprietorship or llc, I think my social security entitlement would be reduced. Not sure about that but that's my line of thinking.
Bottom line for me is that I see no advantage for fileing as sole proprietorship of setting up a LLC.
IMO there is no advantage for creating and filing as a LLC. My previous business was a LLC but that only protected me from creditors in the event the business folded. The LLC protects your personal assets. With your trading biz you don't have any creditor's. In fact as a LLC you have more expenses as you have to pay your accountant to prepare quarterly returns as not the case with a SP. The best advise is ask your accountant.
There is no advantage of setting up an entity for trading. You can still deduct any trading expensive without setting up an entity. Your best savings tax tips is drop stocks and trade futures only.
You are exactly right or at least imo you are exactly right. With stocks you have to keep up with every buy and sell as well as the cost basis. What a huge pain is a** that is. With futures you get a single 1099 each year from each broker. That's one piece of paper. If you have an accountant do your taxes it will cost less giving him one piece of paper versus all those that you have with stocks. If you do your taxes yourself like I do, you'll be done a lot faster.