Hello, My partner and I are thinking of forming an LLC or LLP to trade securities and futures. We will have less 35 people who are all "qualified invididuals" with 200k+ OR a net worth of 1 million. We will do a private placement agreement with them, but do I or my partner need series 3 (CTA) license? Thanks.
Yes. You're beyond the threshold of $400,000 in capital and the minimum 15 investors. Not to freak you out but you're probably already in violation of Federal law just by passing your prospectus around so liberally. Your LLC will need to become a CTA and you and your partner will be AP's of the CTA.
i was not offering a prospectus....it was just a question. we have not formed anything nor are we solliciting clients in any way. This was merely hypothetical. Thanks.