Guy who wants to start a Hedge Fund needs to choose a entity type for his business and a Limited Liability Company (LLC) is probably the route to go.

QUESTION.
I need to learn how to start a company that is owned by my father but I am the sole employee.  I want to start a trading company [I would trade commodities unsing only my own money – as a business]. I need to be advised as to the best business structure for this type of business.

ANSWER.
So you want to be a Commodities Trader like Richard Dennis? See “The Complete TurtleTrader” by Michael Covel (ISBN: 9780061241703). See also, “Hedge Hunters” by Katherine Burton (ISBN: 1576602451). I’m not sure of the ins and outs of the business you want to start. But to answer your question, I recommend you form a single-member Limited Liability Company (LLC) and for tax purposes have the IRS treat it as a C Corporation. Forming the LLC is the cheapest route to go to forming a separate legal entity for liability purposes. And you can get all the tax write-offs of a C Corporation. Just make sure at the end of the tax year all profits in the LLC are paid to you as a bonus so none of your income is subject to double taxation. Consider taking a look at “Structuring Your Business” by Michele Cagan (ISBN: 1593371772) which covers the different choice of entity options available for someone starting a small business. Make sure to read the book review I posted on Amazon for Cagan’s book. Good luck! Regards, -Jeff
 
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com