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3 people in an unincorporated JV trading through a personal account

Discussion in 'Accounting, Tax & Legal' started by tayser, 30th Jun, 2011.

  1. tayser

    tayser New Member

    Joined:
    30th Jun, 2011
    Posts:
    1
    Location:
    Melbourne, VIC
    Hi all,

    question relating to a joint venture agreement between 3 participants, combining capital and trading it through an one of the participant's individual futures/options account in the US.

    3 Participants, we have a joint venture agreement between us which outlines original capital contributed and interest in the venture - basically 40%, 40% and 20%.

    Just looking for a response if it's legal from an Australian perspective that the person whose name the Futures account is in will be able to distribute the profits (and therefore the tax liability) to the other members of the JV.
     
  2. Rob G.

    Rob G. Well-Known Member

    Joined:
    6th Jun, 2007
    Posts:
    717
    Location:
    Melbourne, VIC
    Firstly ...

    What you call yourself and what you actually are may be different.

    If you are conducting a business jointly with a view to a profit, then this sounds like a partnership.

    If one person is conducting some trades on behalf of or for the benefit others using their capital then this may be a brokerage business or managed investment scheme (trust).

    You need to get some legal advice on what you are in the way of association, what the legislation allows/requires and how to meet your obligations.

    Cheers,

    Rob