Trading for a company that is not an actual trading company

Gentleman,

Good morning from CA. Question: A group of people that I am apart of are going to form an LLC. Purpose of the company is to sell consulting services. Service have nothing to do with investing-trading. Can we actively trade our revenue in the LLC's brokerage account and do so without one of us carrying the lic ?

Thank you.

Longtermtrading

 

I am no accountant nor lawyer, but is your consulting business related to trading? I think that's a red flag for an audit.

if not just make another LLC and hire it as your manager. Furthermore, that LLC can open doors in the future to provide asset mgt services to others.

 

Why would it be illegal? Change the operating agreement of the llc to include trading.

 

IB and TDA probably have all the answers, or whatever firm you choose to clear

 

Because they are a consulting company and will have access to inside information perhaps?

 

Thanks to all the responses. The consulting LLC has nothing to do with trading. We are a small group of current and former territory sales reps providing coaching services to companies with outside sales force. We want to take company profits and invest them. More so trade them instead of long term by and hold.

 

I didn't mean to say that the trading was illegal. But the tax treatment of financial trading might have less clarity on the books at filing time.

Sure, his business isn't a bank with a derivatives desk. But, does it have to look like one? You can make a new LLC online for trivial amount.

For organization's sake, keep your unrelated business separate.

 

That would definitely be an issue.