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JackR

Registered: Mar 2004
Posts: 1084

10-23-12 09:55 PM

You may or may not have to pay professional data fees. I'd check with whatever firm you plan to open your account with. See this link to the InteractiveBrokers definition:

http://www.interactivebrokers.com/e...p?ib_entity=llc

Note the basic definition states a "natural person".

Jack

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1245

Registered: May 2012
Posts: 549

10-23-12 10:21 PM

Quote from JackR:

You may or may not have to pay professional data fees. I'd check with whatever firm you plan to open your account with. See this link to the InteractiveBrokers definition:

http://www.interactivebrokers.com/e...p?ib_entity=llc

Note the basic definition states a "natural person".

Jack

An entity like an LLC is not a natural person.

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the1

Registered: Feb 2009
Posts: 2332

10-23-12 11:25 PM

Then I don't believe you have an issue. If you get to the point when you do charge a performance fee be sure to get some legal advice. You also need to be sure you can charge a non-qualified investor a performance fee as a de minimis pool. I'm unsure of the answer to that but I know once you reach the point when you are required to register you absolutely cannot charge a non-qualified investor a performance fee. You can accept up to 35 of them but they will be getting a free ride.

Quote from rogerwilcom:

Hi Robert.

Well, I am getting more than the other Member. Our Membership Interests are weighted 80% for me, 20% for him. However, I am not getting an extra allocation beyond that - like a performance or management fee.

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Robert A. Green

Registered: Nov 2007
Posts: 656

10-25-12 02:24 AM

Quote from rogerwilcom:

Hi Robert.

Well, I am getting more than the other Member. Our Membership Interests are weighted 80% for me, 20% for him. However, I am not getting an extra allocation beyond that - like a performance or management fee.

If its 80/20 profit/loss sharing based on 80/20 capital contributions - with no sweat equity for you versus your partner - and there is no profit allocation, then you are not being compensated for investment management and there is no registration required for CA, SEC or NFA.

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