How to create an investment company
Video: Building an Investment Company | Steve Merrell 2024, July
Private investment is the lifeblood of the global economy. Opening your own private investment management firm will be a daunting task, but thanks to dedication, knowledge and some luck, you and your clients will be able to enter into a very profitable cooperation.
You will need
- - Investment strategy;
- - investors;
- - good marketing.
Instruction manual
1
Decide which investments you intend to take, in which market area the company will be involved. Private investment firms work with activities such as bond and stock transactions. Many of them accept commodity futures, build currency and various option strategies.
2
Create your company. It is quite simple if you are its owner or operator. It is important to decide in which areas your clients will invest, and how to properly manage capital in accordance with the selected areas. If you plan to start larger operations, as well as hire a staff of several employees, consider organizing a company through a departmental line. Open departments that will work with bonds, goods, currency, as well as departments for administrative matters and investor affairs, each of which will be headed by a senior employee.
3
Think about the appropriate type of legal entity. Most investment firms are organized as mini-corporations or limited liability companies. Consult your personal accountant about the most appropriate tax status. For example, if you chose the LLC form, you will be taxed accordingly.
4
Register with the governing bodies. Most investment funds go through registration on exchanges and securities, but if your company specializes in any unique transactions and products, it is quite possible that you will also need to register with the National Futures Association and the Commodity Futures Trading Commission.
5
Attract investors. Both institutions and individuals can become capable. Comply with regulatory requirements for the storage of private data, analyze the benefits and risks of your investment company.
