MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

Why the IRS hates your trading LLC #taxes #crypto #investing

9 Sept 2026 · 1 min

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In this video, Mark Kohler argues that trading cryptocurrencies or stocks does not constitute a business for tax purposes, so forming an LLC does not automatically allow traders to claim typical business deductions such as home‑office or travel expenses. He emphasizes that an LLC’s primary benefit is asset protection when properly organized in a favorable jurisdiction, and warns viewers not to assume that an LLC will turn trading activities into a deductible business.

Chapters

Trading crypto is not a business. Trading stock is not a business. And then trading crypto doesn't mean you can write off your home office or travel around to conferences as an expense for trading. Trading is not a business. And gosh darn it, I am sick and tired of hearing that if you set up an LLC, it now makes it a business. It doesn't. The LLC is for protection. Someone might be telling you a crypto LLC, at the end of the day, is going to provide asset protection if we set it up in the right state. But just don't think an LLC makes these other expenses a write-off.