An LLC (Limited Liability Company) when formed as a trading company, allows for licenesed traders to become members of the firm, thus have the advantages of professional trading (similar to exchange members, use of capital, etc.). In an LLC, there are "owners" (Class A members usually), and "traders" (Class B members). The owners put up a certain amount of capital, buy the exchange membership, and are responsible to for all the regulatory issues and running the firm. Traders put up a certain amount of capital (Class B), and keep profits form their trading. The Class A members (owners), in our case "insulate" the traders from each other's losses by maintaining a minimum of $10 Mil (which is shown distinctly on the balance sheet.....which should be shown to everyone). With this protection, the traders money is safer than with most firms where all the money is simply "pooled." Sub LLC's are more of a "multi level marketing" gambit, where a new company is formed under the parent, given better pricing, and then they can charge the traders whatever they like. Many of the "sub llc's" have little "owners" capital, therefore all the traders are at a higher risk....and the main company can shy away from taking any losses (again, bad for the trader). Sub LLC's act like franchises many times, and sign leases that the Main firm can simply walk away from....leaving traders stranded. There is a lot more to it, but I hope this helps..... Become part of the main team, not part of the farm club...in my opinion.... I would like to see Gene W. add something if can....he is an expert on the legal issues involved.. Don