>>>Unless you are a very good trader with access to alot of capital, why would you spend all the time and money starting a hedge fund? It is very hard to raise money in a "bear" market . As an alternative to a hedge fund, a trader may partner with one or two qualified investors(they know) and start a trading partnership or L.L.C. Check with your CPA or Legal advisor for more information. Gene Weissman Lieber & Weissman Sec., L.L.C. firstname.lastname@example.org<<< As Gene stated, starting a hedge fund is very time and capital consuming, and may not be worthwhile until you hit a certain funding point. So assuming that we are working with a relatively few group (family & friends) of people (<20) with a total of several million, is an LLC then the best way to go about trading as one entity? Is an LLC the best entity for this purpose, or are there better alternatives? Assuming that the others will be silent partners and only funding the entity, and I will be solely managing the accounts. How would I charge for fees or profits with an LLC or another entity?