Incorporating a trading business

[Mark Allen]

After years of time spent on research, I've gotten to the point where I'm considering quitting my day job and taking up trading as a career, and I'm looking into options for reducing my taxable income. Some relatives of mine have set up corporate entities for their non-trading businesses and have successfully reduced their tax burdens that way.

The key issue for me is that I'm fairly sure I wouldn't qualify for trader tax status which seems to afford most of the benefits like not being subjected to the $3K max carry-forward on losses, and most importantly, the ability to claim business deductions. Although I spend 20+ hours a week researching & developing trading systems, the number of trades I make are fairly small at ~50 a year. From reading, I get the impression that I have no chance of claiming trader tax status because of this.

My question is: are there any other options on the table for me? Would I be able to get any tax benefits from incorporating my trading business since I don't have trader tax status? And if I can't, are there any other creative ways other traders have found to get around this issue (maybe involving establishing another business that interacts with the trading business) to unlock the aforementioned tax benefits?

Thanks!