Thanks to all for the great input. It sounds like the LLC is the way to go, not knowing if I will be adding partners down the road. I would like to verify that there are no liscencing requirements on my part even though my father would be classified as a non-accredited investor. Thanks again for the great input!
While neither of us are asset protection specialists I'd suggest leaving it to the experts. The point of my posting earlier to point out the incorrect posting. A poster claim that he was a lawyer and by implication all readers should heed what he had to say about LLCs and asset protection. If you merely spend 30 minutes reading about LLCs and charging orders you will see that LLCs by definition can not be foreclosed upon as easily as can other forms of ownership. This is a reason why LLCs over the past decade or so have replaced the corporation as a preferred vehicle by many attorneys. And yes once someone gets into it they will become aware that several of the States and different LLC strategies offer superior protection. There's a nice book that I show a link to on my web page that sells for maybe $35. Or used on eBay it can be had even cheaper. It covers this area pretty well. Written by Jay Adkisson who I think is quite knowledgeable. He does some work with Robert Sommers "The Tax Prophet" on the internet, who also is well known and knowledgeable. And while I'm dropping names, earlier this week I happened to come across a "Tax Mama" conference call and the guest speaker was no one other than Roccy DeFrancesco who is yet another expert in this area of using LLCs for asset protection. Any of these knowledgeable experts can be looked to for correct information. Finally, the point of my posting was not to educate about asset protection set ups or even to promote LLC ownership. My first post was to agree with the originator here that he was on the right track, and my other post was to expose one who claimed to be a lawyer knowledgeable in LLCs and asset protection.
i use every entity in the world and if i have my choice, id keep each account separate like a friends and family, unless your ONLY purpose is for asset protection. im not a lawyer but accounting and cpa work is my past experience.
Do not trade your family's money..This is the worst thing you will ever do in your life...There are deep reasons for this TRUE advice other than my own experiences...Trading your family's money is fundementally flawed and should NEVER be considered...Thats all I will say because I know you will not listen. DON'T DO IT I have been successfully trading on my own for year and am not doing this to make money - although I will take it. It will just be a small portion of his portfolio so I do not want to get involved if there will be alot of fees involved. My father would be a limited partner.
boy do i ever agree with michael about trading family money. but if you do, keep it transparant as possible.
There is no upside to trading family money....ZERO! If you are a wealthy Trust Fund Baby, make sure they understand the money is a gift and will never see it back.
Actually... totally agree with the family money advice. Your parents will always treat you like a 5 year old... And your siblings will always be jealous of any success you have. Family do not make good business partners. Try it... you'll find out the hard way. I run an LP for over 10 years... And from a tax perspective depending on the jurisdiction... It can be very important to take your income as "profit sharing" in some form... And never as payment for a "service". In Canada... They could come after you years later... And demand a 7% GST tax on "services" plus interest plus penalties... And wipe you out. As an example... I believe mutual fund managers must charge a 7% GST tax on their fees.