llc to limit liability?

Discussion in 'Professional Trading' started by dumb_mother, Jul 19, 2010.

  1. is this allowed?

    can you make an llc with say 200,000$ and then open a brokerage account under the llc to trade futures with. then if there was some sort of flash crash where suppose you were levered 10x1 and managed to lose 400,000$, you could somehow not owe the other 200,000$? or are all the brokerage account user agreements worded in a way that you are still responsible regardless somehow. i'm just trying to decide if i left a prop shop to go trade my own money if there is any way of shielding myself from a flash crash type situation where we close limit down and then open limit down the next day short of just lowering my leverage to a point that i could absorb that. or is it just easier to get assets out of my name?
  2. minmike


    With an s-corp/llc. clearing firms at the cme require that you sign your assets with the s-corp. They won't open it in just the s-corp.