Current CTA's /Costs

Discussion in 'Professional Trading' started by Spectre2007, Apr 26, 2017.

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    Delaware has high registration fees, while many other states have even $0 and some as low as $50. On the whole average for US is $101/year.
     
    #11     Apr 26, 2017

  2. were you able to write off any of the yearly expenses as 'expenses' or 'operating costs'?...
     
    #12     Apr 26, 2017
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    Not in CTA business. But Delaware does offer some tax benefits. That's why many businesses register there.

    Btw, do not see any problem writing off registration expenses against the income. Delaware offers many other tax benefits though.
     
    #13     Apr 26, 2017
  4. What about law firm consultation fees?
     
    #14     Apr 26, 2017
  5. #15     Apr 26, 2017
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    It seems above link is for individual trader not a CTA who is offering a business service. Hence any and all expenses, including buying coffee for a friend can be written off as a business expense.

    Sir, the bottomline is, there are cost cutting ways and measures to go about doing things.

    One company I knew that was going under bankruptcy protection due to losses. The management laid of 25% of the staff but could not hold on and a PE firm took them over for throw away prices hoping for a turnaround. In two weeks, a department that had 16 employees was reduced to 2 and similar measures in other sections too. Although even doing that did not save the company and it's assets were finally sold on auction. They could not lure back their 2-3 main customers who went to China for discount prices.

    Hiring $200/hr lawyer to make disclosure document is throwing money away when you can download for free, dozens of CTA DDs and formulate your own and get it approved by the NFA at no extra charge.

    Btw, futures data from IB is merely $6/month and that includes all 4 exchanges under the CME.
     
    #16     Apr 26, 2017
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    Btw, I would suggest aspiring CTAs to avail the 15 client exemption rule which allows them to act as a CTA without registration.

    If you are giving George Soros a run for his savvy old trading strategies, then go ahead and splurge of $1000/hr lawyers and $500/month market data ;-)
     
    #17     Apr 26, 2017
  8. Thank you for taking time to reply. Yep, I saw numerous documents online from other firms. Was thinking of word docing it but decided rather have unique document in place. Lot of the details are shop specific. Would just take extra time to go through the details and reword it in lawyer lingo.

    I formed 3 LP funds, .. used the first LP doc to create the other 2 LP docs. Legal compliance matters can become a big headache. Whatever I've learned last 20 years want to pass it on as institutional shop for the kids. To be honest it's really not for my ego. I've done all the crazy stunts with fast cars and Ducati's..

    Main thing for me is to keep formalizing the institutional structure more and more as time passes.

    Thanks Again,
    Chris
     
    #18     Apr 26, 2017
  9. #19     Apr 27, 2017
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