Compliance issue when setting up a LLC

Discussion in 'Professional Trading' started by marioeva, Jun 28, 2012.

  1. marioeva


    I live in New York

    I plan to trade my own mony only in a LLC as a part time job.

    But my full time job employer requies full disclosure of OBA ( outside business actitivies) including membership in a LLC.

    How can I go around this issue? Setting up a LLC in offshore?

    Any comment is much appreciated.
  2. You should just disclose it. If for some reason they might misconstrue the activities you're doing, you could name the LLC in a way that suggests to them what you're actually doing.
  3. marioeva


    Issue is my current employer is a bank and they will for sure disapproval if they see me setting up a hedge fund like LLC
  4. marioeva


    My current employer is a bank and they are sure to disapproval it if they see me set up a hedge fund like LLC
  5. You have a couple of issues, biggest is that setting up an LLC as an individual is essentially full pass through in terms of liability, income, taxes, etc.

    Second is that you are creating a second outside business via the LLC. If your primary employer requires you to report outside activity then you will need to report the LLC.

    Can you just have duplicate statements sent to your primary employer and keep things simple?

    If that isn't possible the best thing to do would be to set up a trading LLC that has partners and then set up a sole proprietor LLC for yourself. Have your sole proprietor LLC invest in the trading LLC. This way you can disclose to your primary employer that your outside business is an LLC that owns part of another company and leave it at that.

    Hard to explain like that but tons of guys in NYC do this.

    For what it's worth, I've botched stuff like this before and it has had bad tax consequences. I would strongly advise that you ignore what I said and go talk to a tax attorney and/or accountant.
  6. marioeva


    I work for a bank and they will for sure disapproval my LLC
  7. Most banks or financial institutions of any size won't let you trade. If not for the potential conflicts of interest or your potential access to insider information, they won't let you trade because it distracts you from your job.

    Sounds like you are trying to bypass the rules so unless you just do it under the table and risk getting fired, you are probably stuck.
  8. marioeva


    Can I set up a LLC and hide it? How is my chance?
  9. marioeva


    If i trade under a person name instead of LLC, can I still get the result audited? Thank you
  10. fsa


    The disclosure is mainly for management. What is your position in the bank? If your teller, customer service and is not managing any people's money or using market data for your bank, the exchange doesn't really care about your as a 'professional' status.

    Why should you be able to trade your own bank brokerage account? It's mainly for insider trading or restrictions trading the stock of the company you work for.

    otherwise the bank or your company don't care if you have a 401K account for investment purposes or what your trade or invest in your personal account.

    What you do outside your work is none of your bosse's business anyways and they give you problems quit the job. they can't even fire you if you are not doing anything illegal too.

    #10     Jul 2, 2012