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rogerwilcom

Registered: Aug 2012
Posts: 17

10-23-12 02:16 AM

Myself and a colleague have formed an LLC. We both have put in money to trade futures. I will be doing the trading and he will be running the business (accounting, book keeping, taxes, etc). We are not taking money from anyone else.

Do I or does the LLC need to be registered as an Investment Adviser? We are not trading any money outside of the LLC. We have no investors. Only active members of the LLC.

Does anyone know one way or another?

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dave5578

Registered: May 2012
Posts: 16

10-23-12 02:35 AM

Best of luck with the business.

Hopefully some others here can give you some great advice.

I'm sure you know, but in these matters it is best to get a verified answer from a local professional. Nothing wrong with asking for ideas though.

Again, best of luck!

-Dave Krupar

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1245

Registered: May 2012
Posts: 522

10-23-12 03:09 AM

Quote from rogerwilcom:

Myself and a colleague have formed an LLC. We both have put in money to trade futures. I will be doing the trading and he will be running the business (accounting, book keeping, taxes, etc). We are not taking money from anyone else.

Do I or does the LLC need to be registered as an Investment Adviser? We are not trading any money outside of the LLC. We have no investors. Only active members of the LLC.

Does anyone know one way or another?

No, you don't have to be registered. You're not taking fees from anyone. You're not rasing money from others.

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lindq

Registered: Mar 2002
Posts: 2475

10-23-12 04:48 AM

Quote from rogerwilcom:

Myself and a colleague have formed an LLC. We both have put in money to trade futures. I will be doing the trading and he will be running the business (accounting, book keeping, taxes, etc). We are not taking money from anyone else.

Do I or does the LLC need to be registered as an Investment Adviser? We are not trading any money outside of the LLC. We have no investors. Only active members of the LLC.

Does anyone know one way or another?

The SEC doesn't care that you and another are partnering with each other. But hopefully you care enough to have a written agreement in place. Bad things can happen to good relationships when money is involved.

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ScalperJoe

Registered: Mar 2010
Posts: 608

10-23-12 04:53 AM

Quote from rogerwilcom:

Myself and a colleague have formed an LLC.

Do I or does the LLC need to be registered as an Investment Adviser?

Here's the SEC link for the definition of an IA and exemptions.

http://www.sec.gov/divisions/invest...tion/memoia.htm

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1245

Registered: May 2012
Posts: 522

10-23-12 10:53 AM

Quote from ScalperJoe:

Here's the SEC link for the definition of an IA and exemptions.

http://www.sec.gov/divisions/invest...tion/memoia.htm

Futures are under the NFA:

http://www.nfa.futures.org/NFA-registration/index.HTML

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