what's the best account type for partner trading

H

highstake

My friend and I are thinking about doing trade together. At first we won't put a lot money into it. We are thinking about following forms:

Single person account
Joint Regular Account
Tax deferred joint account (is there one ?)

Anyone can suggest a good form of account for this ?

thanks a lot, and happy holidays
 
Quote from highstake:

My friend and I are thinking about doing trade together. At first we won't put a lot money into it. We are thinking about following forms:

Single person account
Joint Regular Account
Tax deferred joint account (is there one ?)

Anyone can suggest a good form of account for this ?

thanks a lot, and happy holidays
More...
might be better off creating an LLC
 
high - as Truff said, an LLC may be best. The catch is that you are going to have to pay attorney to do that. You said you are not putting a lot in at first, so that may be cost prohibitive.

Can you just each set up your own account and trade it yourself? I would not recommend mixing of funds into one account, that could be a tax nightmare later. But, if you each just have your own account and then trade it, no tax issues and no attorney fees to set up.

You could also look at block trading, controller trading, etc. They are basically the same thing- you keep the accounts separate, but make all the trades from one 'master' account and then the trades get 'divided out' later. You'd have to ask each broker you are looking at if they offer this feature. Some software platforms have it built in as well.
 
Quote from TSGannGalt:

I never recommend people trading together on one account.

Make seperate accounts if you want to keep him/her as a friend.
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If he's your freind, it shouldn't be a problem. If money is going to come between your friendship, then he isn't really your freind, IMO. Put it all in one accout and split the profit/ loss 50/50..
 
Quote from cashmoney69:

If he's your freind, it shouldn't be a problem. If money is going to come between your friendship, then he isn't really your freind, IMO. Put it all in one accout and split the profit/ loss 50/50..
More...

cash - as was explained in your thread about this subject, MONEY CHANGES PEOPLE. It does not matter if this person is your friend that would die for you, when $$$ is involved, that goes out the window.

Make no mistake about it, money changes people. Therefore, AVOID mixing funds at all costs.
 
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