Question about investing other's money...

[Justin Mitchell]

My basic question is this; I am an extremely talented investor and many of my friends and family want to give me money to invest for them. I have a single brokerage account, but I want to set up a structure that will not cause me legal issues (mainly taxation) I have a lot of leverage with how I can set up a partnership, but I want to start investing now; What is the best overall course of action, and what steps should I take to protect all parties in the interim?

Thanks in advance,

Justin

 

[ALawyer]

You are going to be serving as an investment adviser, and that is very tightly regulated both under federal and state law. One basic requirement is you must keep the monies and assets separate.

You are taking on a lot of responsibility and if the market turns, or your luck changes, you'd have a lot of liability.

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