Independent Daytrader vs LLP Setup

B

BayStCaptial

hello, i have been daytrading US stocks/US equity options/G10 FX using some quant strategies and make a decent PnL. I have been using one of those common prop firms for leverage and market access for equity and using DBFX for FX.

I have been trading under my own name as an independent daytrader. Now, I would like to make things a little more formal to set up a LLP and do the trading under the LLP. The main reason is that I wanna build a formal track record such as later the LLP might be able to attract some partners/investors.

What are the pros and cons do you see in LLP vs independent trading ?
 
Bro:

Do a search, there are at least 15 threads devoted to this.

Print a business card if you want to pretend to have a job!

el pollo

PS: You should spell check your name, it's spelled CAPITAL.
 
Quote from BayStCaptial:

hello, i have been daytrading US stocks/US equity options/G10 FX using some quant strategies and make a decent PnL. I have been using one of those common prop firms for leverage and market access for equity and using DBFX for FX.

I have been trading under my own name as an independent daytrader. Now, I would like to make things a little more formal to set up a LLP and do the trading under the LLP. The main reason is that I wanna build a formal track record such as later the LLP might be able to attract some partners/investors.

What are the pros and cons do you see in LLP vs independent trading ?
More...

Tax Right offs and other typical business discounts that you may be able to harvest in some way since you would incur them anyway. It CAN be easier to establish Marked to Market under an enterprise's unmbrella for a noob like me leaving the world of enterprise computing, but I doubt this is an issue for you at this point. I would caution you to consider and LLC instead of an LLP -- at least for the actual instrument -- but that is going to depend on your state.
 
Quote from BayStCaptial:

hello, i have been daytrading US stocks/US equity options/G10 FX using some quant strategies and make a decent PnL. I have been using one of those common prop firms for leverage and market access for equity and using DBFX for FX.

I have been trading under my own name as an independent daytrader. Now, I would like to make things a little more formal to set up a LLP and do the trading under the LLP. The main reason is that I wanna build a formal track record such as later the LLP might be able to attract some partners/investors.

What are the pros and cons do you see in LLP vs independent trading ?
More...

Other variables involved. Are you speaking of just retail trading? Do you want or have partners involved? Are you planning on becoming licensed and joining a trading firm (that's where I can offer more assistance, of course). Feel free to PM me if you like.

Don
 
Quote from Don Bright:

Other variables involved. Are you speaking of just retail trading? Do you want or have partners involved? Are you planning on becoming licensed and joining a trading firm (that's where I can offer more assistance, of course). Feel free to PM me if you like.

Don
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Don, hi. I see you are incorporated as an LLC.

We're thinking about doing the same. We are working on some trading projects with partners in South-East Asia, and they want to establish an LLC entity in the US, to run the operation, to be protected by US legislation.

How high are the transaction costs? Is it worthwhile for a mid-sized operation? Thanks!
 
Quote from HiddenAgenda:

Don, hi. I see you are incorporated as an LLC.

We're thinking about doing the same. We are working on some trading projects with partners in South-East Asia, and they want to establish an LLC entity in the US, to run the operation, to be protected by US legislation.

How high are the transaction costs? Is it worthwhile for a mid-sized operation? Thanks!
More...

A lot of variables. Are you going to by a Seat on an exchange? File for a Broker Dealer? Just be an Introducing Broker? Sub-LLC of larger group? Who are going to clear your trades with? etc.

Bright Trading is an LLC, because that's how the SEC wants it. Each trader is an individual member of our LLC, thus keeping their limited liability and tax benefits. Bright Trading is an exchange member, and a clearing member of Goldmas Sachs Execution and Clearing. Each trader must be licensed etc.

Again, PM or call me if you like. 702.739.1393

Don
 
Great, thanks for the info, Don. We're still thinking through the structure, I might get in touch later. I know your firm has an excellent reputation in the trading community.
 
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