The trouble with "anecdotal" evidence is that it often results in laboring under misconceptions:
1 - That an LLC increases the probability that you qualify for trader tax status (hereinafter TTS). It doesn't.
2 - That the IRS grants you TTS. The IRS doesn't "grant" you anything. In other words you don't ask the IRS for TTS, you trade in the manner that qualifies you for TTS and you file your taxes on Schedule C at the end of the tax year in which you believe you have qualified.
IRS Tax Topic number 429 explains that qualifying for TTS depends on what you do, not on the entity through which you do it. You can just as easily do it as an individual on Schedule C. An LLC is a disregarded entity for federal income tax purposes anyway.
https://www.irs.gov/taxtopics/tc429
Here, for your perusal, is that Section 475 of the US Tax Code referred to in the tax topic.
https://codes.findlaw.com/us/title-2...-sect-475.html
Page 67 of IRS Publication 550 Investment Income and Expenses explains the Special Rules for Traders in Securities and Commodities:
https://www.irs.gov/pub/irs-pdf/p550.pdf
Forbes published a comprehensive article (hardly anecdotal) that explains how to qualify for TTS and touches on appellate case decisions:
https://www.forbes.com/sites/greatsp.../#3932b2363e35
You should look up and read the case decisions for the nuances regarding TTS. You can probably find them on google scholar:
https://scholar.google.com/scholar?hl=en&as_sdt=3
Enter the names cited in the article one at a time and see what comes up.
Well, I think I got that part right. I wrote it before seeing your post.
