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I'll have to look this one up but my guess is that you would fall under the
regulations of the state or the national (NASD) rules and you would have to
be registered since you are accepting a fee for managing the money. If you
are dealing with only individuals from your state then you would only fall
under state regs. It falls under the Registered Investment Advisor Act.
There are rules for private pools. I'll see if I can find them in my Series
7 manuals. If you were forming a commodity pool, the rules there are much
different and the CFTC or NFA sites have information on how you can start a
small, private pool without being a CTA. As I recall you have to form a
limited partnership in your state.
Marlowe
----- Original Message -----
From: Levent Erbora <erbora@xxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Sunday, March 26, 2000 12:28 AM
Subject: Managing Money
What would be the best type of business entity to form for investing and
managing a few other people's money?
A limited partnership? A "limited liability corp. (LLC)" maybe? Something
else?
What would be the pros & cons for the above?
The number of investors would probably be less than 10, and the funds would
mainly be invested/traded in the stock market (no futures/commodities).
Also, what would be the typical or generally accepted fee structure/profit
sharing arrangement between the investors and the money manager?
Any and all advise, insights and pointers will be greatly appreciated.
Thanks in advance for your time.
Best regards,
Levent Erbora
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