Yeah, why would you consider starting this now, when almost every one else is getting out? I'd be surprised if Assent even allows this anymore. Actually, it's probably the reason sub-LLC's haven't been paid in months (if that's true). Did you research the TUCO situation? An individual cannot make commission overrides on traders unless they're a registered BD. Having them be licensed with Assent just solves the leverage issue, not the commissions issue, which I assume is the main reason why you want to start a sub-LLC in the first place.
Not true. You don't have to be a registered BD to receive commission overrides. You need to be a registered representative of a BD to receive overrides. If your series 7 is registered at a BD then you can receive overrides on accounts at that BD. So if your series 7 is registered at Assent, which is a BD, you can receive overrides on other traders' accounts at Assent.
Udontknowme That is absolutely correct. Seems you know a thing or two about Assent. My main concern with all of this starting a sub-llc with Assent is getting stiffed by Assent on seeing my monthly check. I have just heard from someone that has a sub with Assent said "given the situations that have been going on with the "tuco" thing I haven't seen a check from Assent in months" and not sure if I will. that's not cool.
Are you sure about that? I'm pretty sure an unregistered LLC can not charge commissions. Assent themselves can charge commissions because they are a registered BD. Joe Blow LLC can not.
No LLC can receive overrides unless the LLC itself is a BD. But a person can if they are registered with a BD.
I didn't word my initial response correctly, but that's what I mean- the OP said he's starting a sub-LLC under Assent, and getting overrides doesn't fly in that scenario anymore.
To start with, the person who started this thread doesn't seem to know that much about the Prop business, and should know that at Assent any money that a trader puts up as a deposit is locked up and cannot be withdrawn for any reason for at least a year. However, he did say that he would be getting a branch code from Assent, and that he and all the traders would be registered. So he would be allowed to receive overrides. But unless he is going to have his own office space that the traders will trade from he doesn't need to get a branch code, or his own LLC. Any registered trader at Assent can receive overrides on other traders without having a branch code or LLC. Maybe you are thinking of sub-LLC in the form of a Master account used by unregistered traders as Tuco was setup?