If you want to use the Reg. D exemption from SEC securities registration under the Securities Act of 1933 you are indeed limited to no more than 35 nonaccredited investors. If you have any nonaccredited investors you'll need a prospectus. If you want to use the Section 3(c)1 exemption from SEC securities registration under the Investment Company Act of 1940 you are limited to no more than 99 non-QEP investors. You will also be unable to advertise or make general solicitations to find investors. You can only talk about your LLC to people you already have a relationship with. If you want to use the Section 203(b)(3) exemption from SEC investment advisor registration under the Investment Advisors Act of 1940 you need to have fewer than 15 clients. Fortunately, for now, the typical LLC "hedge fund" counts as a single client. There is no deadline for creating your LLC. Whatever trading profits are created by trading within the LLC in 2004 are passed through to the LLC owners for 2004 taxes. Let us know if you form the LLC and how it works out. Send me a prospectus. You've already got a relationship with me.
This was just an example. Payout can be 70%...or whatever. I just mainly wanted to know how I can have my corporations invest in the acct. -Fast
Just one more thought... Joe mentioned the LLC, but you might find it easier to set up and maintain a general or limited partnership. Not a lot of difference between partnerships and LLC's and they are both pass through entities for tax considerations, but you should look into which suits your needs best.
have the corp open a brokerage account of its own and use the ib friends and family account to trade them both.
Thanks Aaron; sent you a PM btw. I'm gonna check with my attorney and accountant this week on how to proceed with this. Neither are experts in the trading area, but both are very sharp so they should be able to point me in the right direction. -Fast
I trade with OEC, and considering the service I'm receiving here, I could never move back to IB; unless I were to start trading stocks/options. Even OEC can accomodate multiple accounts, but I'm not sure a single order can be divided among the seperate accounts. I almost want this new LLC to act as sort of a mini hedge fund. -Fast
I'm not sure of all the logistics with what you're talking about, but if you need a "highly" experience futures trader for your fund, let me know
oh btw, I'm not limited to solely futures either. Experienced stock trader with a "track record" as well...