We are thinking about assembling a boutique trading operation with some partners from South-East Asia. We want to be protected by US legislation, and would like to set up an LLC. Can anyone recommend any good books on how to set up a US LLC correctly? We don't want to incorporate locally, because the local government will seize our profits. All of us are very successful traders, and it's a critical issue for us. We don't want to spend too much money on lawyers and/or accountants, and want to stay focus on the trading. Thanks.
1) nolo.com 2) An Idiot's or Dummies Guide to LLC's 3) A law school clinic for indigents. Start with Harvard, Yale or Stanford.
There are some things we want, and some things we don't want. Nothing wrong with that. Just looking for our edge.
I assume you mean "legal edge". Your clearing firm ought to be able to assist with that if they want your business and if they properly understand what you are doing.
Quote from HiddenAgenda: We don't want to incorporate locally, because the local government will seize our profits. All of us are very successful traders, and it's a critical issue for us. That is not how it works. Any one in that state must pay taxes, regardless of where you try to sneak in an LLC. Almost always for a small concern, incorporating in your own state turns out to be what you need to do. For people out of country, it is quite different - Delaware if often the state of choice for US-Based internationals. We don't want to spend too much money on lawyers and/or accountants, and want to stay focus on the trading. That is like saying you don't feel you need life insurance for your dependents because you don't plan to die. If setting up an LLC or corp, don't cheap out to your own detriment, there are a number of legal and tax issues, and reading a book or website is not enough. I used to own an S Corp. You should likely consult a CPA who specializes in LLCs in your area. You can do a lot of the setup and legwork yourself with a kit, but you need to run your final plans by knowledgeable people who can save you grief later, when the tax / legal authorities undo your on-the-cheap plan. Every state has their own variation. Even your own town might have specific rules about operating up a business. Everything from bookkeeping to quarterly/estimated taxes. This is not like being someone's employee. There is a saying that a person who has himself as a lawyer has a fool for a client. Also there are a couple of people who specialize in trading businesses - one named Green or something like that. Someone else here may know his name or website. He posts some useful stuff on his website that might educate you also...
Thanks for the info guys! This may be easier than I thought, at least the set-up formalities. Sounds like there are a number of ways to do this, but our goal is to try to do this with the least amount of pain possible. Although, as they say, no pain no gain