need license for trading for friends & family?

H

hanniss

Hello,

I am considering dropping my S7 and S66 licenses and trading exclusively for about a dozen friends and family (about 3m in assets total. I understand that I may need to set up an LLC or establish a simple partnership agreement. I will have a trading power of attorney for the partners accounts. I plan on charging 30% of the profits. I am located in CA.

Does anybody know og a good securities ttorney in CA?

Thanks.
 
Tell your friends & family to set up the accounts, give you their usernames & passwords, then pay you a percentage of profits by separate checks. Piece of cake. Do it under the table.
 
Dear Petsamo,

Thanks much! I am not so much concerned about taxes as I am about licensing. I heard as long as the number of investment partners is small, there is no need to be licensed, but that it is dependent on respective state regulations.

Anybody have experience?

Hans
 
First thing you want to do is check the state regulations. Some places want you to register as an advisor regardless of size. If you can do it without your licences don't just drop them, put them on hold and see how the first year goes. I know I wouldn't want to take that test again. Good luck to you all!
 
Quote from hanniss:
....a good securities attorney in CA?
More...
Look up something by the name of miramar-research.com. You may be able to use one of their products instead of wasting thousands of dollars on an attorney.
 
Quote from Petsamo:
.....pay you a percentage of profits by separate checks. Piece of cake. Do it under the table.
More...
That is operationally feasible. What will you do if any of your "family" or "friends" refuse to pay your bonus? :confused:
 
Quote from Petsamo:

Tell your friends & family to set up the accounts, give you their usernames & passwords, then pay you a percentage of profits by separate checks. Piece of cake. Do it under the table.
More...


kudos to another TM genius. in your scenario the order would have to be entered in 12 pieces. i
guess since you trade very 2 weeks it would be doable. what a joke.
 
the limit is 15 clients (USA)
look at interactive brokers homepage they offer that kond of account, there you can find infos...
 
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