Robert Morse
Sponsor
We, Lightspeed and Wedbush Future’s, require all single member LLCs to sign personal guarantees for all futures Accounts.
how to NOT take responsibilty
- Thread starter Mdtbyk
- Start date
And if it’s a LLC with a lot of partners so then ?
Someone needs to do a search ... "piercing the corporate veil".
You are required to cross every "T" and dot every "i" both personally and at the entity level. This is much more difficult to "maintain" than you think. Especially with LLCs and/or Subchapter S status. Upon opening an entity titled brokerage account, you are required to provide articles of organization/incorporation. Depending on the brokerage, changes to articles and/or ownership structure may be requested periodically. No matter, make no mistake: In the event the brokerage is on the hook for losses of your entity, they will play hardball. Any and all subsequent articles/ownership changes will be scrutinized, and the slightest impropriety flushed out. If they can pierce the corporate veil, they will, and it's over.
You are required to cross every "T" and dot every "i" both personally and at the entity level. This is much more difficult to "maintain" than you think. Especially with LLCs and/or Subchapter S status. Upon opening an entity titled brokerage account, you are required to provide articles of organization/incorporation. Depending on the brokerage, changes to articles and/or ownership structure may be requested periodically. No matter, make no mistake: In the event the brokerage is on the hook for losses of your entity, they will play hardball. Any and all subsequent articles/ownership changes will be scrutinized, and the slightest impropriety flushed out. If they can pierce the corporate veil, they will, and it's over.
didnt understand one word you wrote do you have it in simple english?
Reread the post and take some initiative to learn.
im so over whelmed with my other investments just want to find a way to be less liable
Since you admit you are trading beyond your means, setting up an entity would constitute fraud. The brokerage would pierce the corporate veil and you (and possibly other members/owners) would be held liable for losses. End of story.
Of course you can try "the broker didn't follow "know the customer" rules and let me do it!!" defense.
Happy Trading!
at the end of the day everyone will try to get out of his responsibility and the broker will try to get out as much as he can