I am interested in starting a CTA, but don't want to put my life savings and family's livelihood on the line. Along those lines, I have found an associate to back my operation. The idea is for him to provide me with the capital to cover personal and business expenses of 250 K over a two year startup period. My questions are: What are the tax implications for the backer? for the CTA? Will he just be able to write me a check for 250 K that I put in the bank and draw from? What ideas do people have for an incentive program to compensate this backer and make it worthwhile for him?