how to NOT take responsibilty

Discussion in 'Trading' started by Mdtbyk, Sep 2, 2018.

  1. Robert Morse

    Robert Morse Sponsor

    We, Lightspeed and Wedbush Future’s, require all single member LLCs to sign personal guarantees for all futures Accounts.
     
    #11     Sep 2, 2018
  2. Mdtbyk

    Mdtbyk

    And if it’s a LLC with a lot of partners so then ?
     
    #12     Sep 2, 2018
  3. tiddlywinks

    tiddlywinks

    Someone needs to do a search ... "piercing the corporate veil".

    You are required to cross every "T" and dot every "i" both personally and at the entity level. This is much more difficult to "maintain" than you think. Especially with LLCs and/or Subchapter S status. Upon opening an entity titled brokerage account, you are required to provide articles of organization/incorporation. Depending on the brokerage, changes to articles and/or ownership structure may be requested periodically. No matter, make no mistake: In the event the brokerage is on the hook for losses of your entity, they will play hardball. Any and all subsequent articles/ownership changes will be scrutinized, and the slightest impropriety flushed out. If they can pierce the corporate veil, they will, and it's over.
     
    #13     Sep 2, 2018
  4. Mdtbyk

    Mdtbyk

    didnt understand one word you wrote do you have it in simple english?
     
    #14     Sep 2, 2018
  5. tiddlywinks

    tiddlywinks

    Reread the post and take some initiative to learn.
     
    #15     Sep 2, 2018
    Sig and Sprout like this.
  6. Mdtbyk

    Mdtbyk

    im so over whelmed with my other investments just want to find a way to be less liable
     
    #16     Sep 2, 2018
  7. tiddlywinks

    tiddlywinks

    Since you admit you are trading beyond your means, setting up an entity would constitute fraud. The brokerage would pierce the corporate veil and you (and possibly other members/owners) would be held liable for losses. End of story.

    Of course you can try "the broker didn't follow "know the customer" rules and let me do it!!" defense.

    Happy Trading!
     
    #17     Sep 2, 2018
    MattZ likes this.
  8. Mdtbyk

    Mdtbyk

    at the end of the day everyone will try to get out of his responsibility and the broker will try to get out as much as he can
     
    #18     Sep 2, 2018
  9. alexpun

    alexpun

    Why would any broker provide you margin capability if you don't want to be responsible for your loss?

    You can always cap your loss with the appropriate future option but you are going to pay for it.
     
    #19     Sep 2, 2018
    MattZ likes this.
  10. Mdtbyk

    Mdtbyk

    i always place a trade with future + option as well when i sell an future i first sell the future and only then close the option
    im just always worried that one night ill wake that for some reason they sold my option
    and my future was jus there and im minus who's knows how much
     
    #20     Sep 2, 2018