I am a part-time individual "trader" (not quite meeting the IRS trader status) and am looking for other ways to branch out and make additional trading capital. I have no financial licenses (Series 7, etc.), but I have a friend that is interested in letting me help him invest his money. We want to setup an official/legal means of me trading his money, but not sure what is the best way to setup this relationship. I have looked a little at creating an LLC partnership, or him hiring me as an employee of another existing company he owns, etc. What are the factors that need to be considered and what types of relationships can we create where I get paid to either advise him or actually trade his account for him. I want to limit my risk of exposure incase he decides he is unhappy with my advice or trades. I also want to be able to take part in the profits as a means of payment. Any suggestions/comments/warnings would be great!