This is an extension/more detailed question I asked a while ago: Legal documents required for managing an investment portfolio among friends?
The main question here is do I need to create an LLC to go through with this? Or can I just make a firm name, create a website, make a disclosure form and partnership agreement and start investing?
Details: I understand that I am basically going to be a CPO = for some friends and family - initially I will be managing a pool smaller than 15 people, and less than 400K USD which will make me exempt from NFA registration, also I will be the sole manager of this pool of funds - we will only be trading the Forex market. According to the SEC since this is less than 25mil USD I will be ineligible/exempt to register with them to.
I am filling out their exemption form here - https://www.nfa.futures.org/ExemptionsNonReg/ and it ask if I am a sole proprietor or a firm, would it be appropriate to list myself as a firm? Either way during registration you have to put in a name for the firm field. My question is does the firm I am going to create have to be LLC, etc, or can I just put in a name of what I want my firm to be called, and not have to do any legal paper work outside of the following:
- The rules listed here - http://www.cftc.gov/IndustryOversight/Intermediaries/CPOs/index.htm
- And an Investment club partnership agreement
And then I can begin to pool their money and beginning investing. Does this sound like the appropriate way to go about doing this?