CTA Startup

[heech]

Quote from Stok:

I have a C-corp as my GP of my LP. I own both, so I am the only one involved with the LP....but that structure opens me up to liability, eh?

Jesus, that's complicated. And don't you end up paying taxes in your C-Corp? Not even a S-corp?

Just go with the single member LLC. Set it up in Delaware with BizFilings like everyone else (well, me) did.

 

[Chicago_CTA]

Most CTAs (NOT CPOs) are corporations or LLC.


We are a Delaware Corporation.

 

[Stok]

Need to call my CPA....but if the LP route is a no go...majority of CTA's are either LLC's or are Inc. (dunno if S or C corp).

 

[Stok]

Quote from Chicago_CTA:

Most CTAs (NOT CPOs) are corporations or LLC.


We are a Delaware Corporation.

Which kind? And why over a LLC?

 

[Stok]

Quote from heech:

Jesus, that's complicated. And don't you end up paying taxes in your C-Corp? Not even a S-corp?

Just go with the single member LLC. Set it up in Delaware with BizFilings like everyone else (well, me) did.

Ha...it is and it isn't. The C-corp, only 1% of my income flows through. The rest flows through the LP to me. The reason for this structure is tax purposes only (I do not pay SET tax).

But, yes, I will either go with a LLC or Inc.

 

[Chicago_CTA]

Quote from Stok:

Which kind? And why over a LLC?

Sub-chapter "S" because I own 100% of the company.

Just because LLC has "limited liability" in it does not necessarily mean you have an additional layer of protection!

Most of the S&P 500 is incorporated in Delaware, and some would consider it to be the "standard."

 

[Stok]

Can someone explain to me RT/YR/$M and how that is calculated?

 

[chinook]

Quote from Stok:

Can someone explain to me RT/YR/$M and how that is calculated?

It is number of contracts (roundturn) per year per million dollars under management.

 

[Stok]

Quote from chinook:

It is number of contracts (roundturn) per year per million dollars under management.

Ok, for futures that's easy. Cash forex? I guess using $100,000 = 1 lot is the norm?

 

[chinook]

Quote from Stok:

Ok, for futures that's easy. Cash forex? I guess using $100,000 = 1 lot is the norm?

I am not familiar with what FX CTAs would do in this case. Sorry....