Suppose you leave your job to trade for a living. Inevitably, your friends and family will ask if you are "playing around" in the markets. You will probably firmly object and explain that you are actively trading, using sophisticated tools and services, to make a good living. You may give the questioners your new business card, which shows you as the president of some company with an LLC after its name.

Having your own legal entity for your trading business may quiet your family and friends and make you feel better, but do you really need a separate legal structure? Will an entity protect you and save you more in taxes?