Adding members to an LLC

[boro45]

What is the name of your state? TX

Currently I have a single member LLC as owner of a futures trading account. A couple of family members would like to give me money to trade on their behalf. I am happy to do this but unsure of how to structure everything from a legal standpoint.

At first blush, it seems as simple as amending the LLC registration with the state to include two new members and then depositing the money into the trading account (it would be too cumberson and make for inefficient trading to open separate accounts for each person). Then at the end of the year, the LLC's gains are taxed on each person's 1040 to the extent of their share of the account (equal shares).

Rarely are matters this simple and I'm really not sure how to proceed with this.

Any advice is welcome.

 

[divgradcurl]

You might want to talk with an attorney before you go ahead with this idea -- generally you have to have a broker's license before you can invest another's money for them, and that's regulated by the SEC.