how to set-up a tiny fund

[Alliance01]

Seriously though, some of the stuff you see here is depressing. I know some of it is exposing scammers or dealing with serial tyre kickers which is all well and good but aren't we all better off if these people are just reported to whoever moderates this stuff to deal with so we can avoid some of the smug, snipey stuff that lowers the general tone and probably prevents some less experienced people putting forward legitinat e questions or thoughts for fear of being ripped apart. Some of the stuff here is like being in a playground.

 

[gayaku]

too many frustrated people here... I pity them.
to succeed in trading, you need to be hard worker, disciplined, and positive. the positive part should be the easiest to get right, but apparently it's not !

 

[malaguti]

too many frustrated people here... I pity them.
to succeed in trading, you need to be hard worker, disciplined, and positive. the positive part should be the easiest to get right, but apparently it's not !

I agree, sorry I only came across this thread just now. People dont know the answer its as simple as that so they post rubbish. Gayaku did you find the answer you wanted? I've set up quite a few companies for different purposes, if a limited company is really what you're after. Its purpose is to limit your exposure should things go wrong. then the minor headache of salaries (your own), and corporation tax etc and dividends. Its no big deal to be honest. I used to be an accountant.
PM me if you still need an answer, it lies very much in how you are raising the capital. You also mention other "people's money" so naturally you cant do this from one account or else the corporation law "veil of incorporation" kicks in and you will be liable for everything if things go wrong.
Good luck all the same

 

[gayaku]

thanks. This doesn't answer the question : how to set-up a small structure to manage others people money.
there doesn't seem to be a simple, flexible, tax-efficient solution to manage very small amounts of money (<200K). especially when trading tax-free products (spreadbetting, sport trading).
i will keep trading only my own money for the moment, and focus on making a good PL.

 

[Armory]

When you establish your fund, there are two key entities that must be created:
• A Management Company – As the name implies, the management company is
the managing entity of the hedge fund. The management company can be
owned by an individual or group of individuals and is typically a Limited Liability
Corporation (LLC).
• A Limited Partnership – The Limited Partnership is truly the “fund” under which
the capital will be traded. This Limited Partnership will accept contributions from
the limited partners (investors), and gains and losses will compound within this
legal entity.

Establishing these legal entities gives you a chance to build a legitimate track record that
can be audited and presented to prospective investors.

It’s important to note that you need to establish your track record within a true
professional legal entity. Generating strong returns in a personal trading account may be
helpful in verifying your methodology, but there are very few investors who will put
money in your fund based on a non-professional account.

 

[silverkas]

I have a friend who works in a incubator hedge fund they manage around $500 million distributed between other start up funds in the office, They can set you up with compliance, i think the minimum they can get you of the ground with is around $100k AUM minimum. Only serious people with sophisticated strategies and not mt4 traders. [email protected]