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When starting an investment group ( buying & selling stock) should it be partnership, LLC, or Incorportate.?


When starting an investment group ( buying & selling stock) should it be partnership, LLC, or Incorportate.?

More generally speaking, it really depends on what types of profits versus risk tradeoffs you plan on taking on.

(ranked in terms of greatest to least liability and best tax situation to least)
-partnership -> liability to you and your partner, personal tax
-limited liability company -> full ownership, limited liability, personal tax
-incorporate -> distributed ownership, distributed liability, personal tax, company taxed

If your thinking of starting a hedge fund or such other operations, the regulations are more liberal IN SOME WAYS then say other investment groups under US law, so it's possible that there are some benefits that require further research.

Partnership LLC

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