Will there be any tax or legal issues if I open a friends and family account as an individual? If there are, would it be best to create an LLC? I'm only managing money for three family members.
Maybe you should just have a POA over the accounts? I think if you put the capital into an LLC that may constitute a pool. If you wish I can PM you the staff we work with in Chicago. Best to take an expert advice that works with regulators.
IB cares about, in order: 1) taxing authorities 2) exchange authorities 3) Thom. Peterffy 4) IB's institutional accounts 5) IB's retail accounts. So! (Do you notice where you/we fit on there?) The thing about the F/A accounts (so poorly described by IB) is that there is *some*, READILY IDENTIFIABLE, tax-liability party indicated. (Like, a Social Security/TaxPayer ID in the U.S.) That's it, really. Give 'em a bank account of whomever will be the owner. Someplace to direct the IRS paperwork. They'll be good. Any choices for you will probably be tax liability driven. (And thus, the 'best' answers may vary by calendar year and even tax regime. Meh!)