Starting a Forex LLC company can actually be fairly easy depending on what exactly the company's intentions are. If you are acting as a Forex broker, you will need a license in your country of operation to legally work. However, if you are not acting as a broker, then starting a Forex LLC is as simple as starting up a regular limited liability corporation (LLC). Because this market has far less regulation than many of the other financial markets, there are less requirements in getting a Forex LLC up and running.
Things You'll Need
- Business name
- Filed LLC
- Local licenses (optional)
- Brokerage license
Choose a unique company name that is not being used by another LLC in the state you are filing in. You can check to see if a name is open by making an inquiry at the Secretary of State Office in your state. Several state government websites allow you to search for this information online (see Resources).
File the Articles of Organization paperwork for a limited liability corporation (LLC). Some people choose to use a lawyer, while others do the paperwork themselves. Filing fees vary from state to state--you'll need to include those with the filing, which is done at a local courthouse or sent to the Secretary of State office. No special paperwork beyond the normal LLC papers are needed to set up a new Forex LLC company.
If you are going to be working as a Forex broker, you must get certified as a broker in your country of residence. In the United States this means a Series 7, Series 63, and a Series 65 (or sometimes a 66) license. You will also need to pass the National Association of Securities Dealers Series 3 test. If you're not going to be working as a broker, then you can skip this step and simply proceed after getting the LLC set up.
If necessary, create an "operating agreement" to explain the format and function of your company. Once again most people choose to have a lawyer draw up these papers, which are then filed with the Secretary of State office and cover issues like management powers, payment to owners, and split up of the company in a partnership. In most states this isn't legally required, but if there is more than one owner to the LLC, it's a critical step, and a good idea even for a sole proprietor owned LLC.
Take care of any local or state business licenses that are necessary. These costs can vary from state to state, as some areas have both state and local business fees and licenses, while others have neither. Take care of all these licensing agreements and your Forex LLC will be ready to go.
Tips & Warnings
- Don't act as a broker without getting the appropriate license.
- Make sure you have winning trading systems--the Forex is notorious for busting even the best stock and commodity traders.
- Photo Credit $ Symbol and bar chart image by rolffimages from Fotolia.com
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