INVESTING · ALPACA · ENTITY PICK

Alpaca scaffold - account ownership question

Asked 2026-05-12, idle 11 days. Scaffold is built and waiting on entity-pick before it points at a real account. Ray recommends Personal for speed; cleaner separation costs weeks.

The Alpaca integration scaffold ticket (Both / High) has been waiting 11 days on a founder-side answer: which entity owns the Alpaca account that the scaffold should authenticate against? The paper-trade portfolio is already deployed against the existing personal-paper account (smart-money-mirror v1, power v1.1, NVIDIA supply-chain v1, NVIDIA-adjacent v1 - all live in paper sandbox). The scaffold question is forward-looking: when we eventually move from paper to a real funded account, which entity holds it? The answer affects 1Password secret naming, API-key isolation, and tax treatment of any future realized P&L.

The ask

Pick one of the 4 options below. Default recommendation: APPROVE Personal (Ben) - fastest path, lowest friction, easiest to migrate later if separation becomes worthwhile. Ben individual account already exists (paper sandbox under it); funding it is one wire transfer.

The 3 ownership shapes

EntitySetup costTaxFrictionCleanliness
Personal (Ben)Zero - existsSchedule D on Ben's 1040LowestCommingles personal + RDCO research
RDCO LLC~1 week (entity-account onboarding, KYB docs)Flows to personal via Schedule K-1 (single-member LLC default)MediumRDCO is the operating entity; trading is RDCO research artifact
New dedicated trading entity~3-4 weeks (form entity, EIN, bank account, Alpaca onboarding)Separate K-1 or 1120HighestCleanest - separates trading from operating biz, simpler reporting if active trading scales

Context

Ray's read

APPROVE Personal (Ben). No live funds in motion. Paper sandbox is already there. Lowest friction unlock. If/when active trading scales (say, >$100k AUM or external capital), revisit and migrate to LLC or new entity. The "cleanest" option (new dedicated entity) costs weeks of admin friction for a paper-trade scaffold - misallocation of founder time given current scale.

Lock in

Approve - Personal (Ben) account (recommended)

Ray hardens the scaffold against Ben's personal Alpaca account. 1Password naming: Alpaca Personal Paper API Key + Alpaca Personal Live API Key (when funded). Migration to LLC/new entity later remains an option. Use the field for any constraint (e.g. "require explicit paper/live flag on every trade call").

Approve + send
Approve-RDCO - RDCO LLC account

Ray opens a new Alpaca account under RDCO LLC, runs KYB onboarding (~1 week), reissues keys, retires paper sandbox under personal. 1Password naming: Alpaca RDCO LLC .... Trading P&L flows via K-1 to personal return (single-member default).

Approve-RDCO + send
Approve-NEW - new dedicated trading entity

Form a new LLC dedicated to trading. Costs ~3-4 weeks (entity formation, EIN, bank, Alpaca KYB). Cleanest separation; ideal if active trading scales or external capital ever enters. Use the field if you want a specific entity name or jurisdiction.

Approve-NEW + send
Defer - pause Alpaca scaffold

Park the scaffold until paper-trade thesis matures further. Existing paper portfolio continues under Ben's personal sandbox without the scaffold hardening. Decision moves back into queue when triggered.

Defer + send

Cross-reference

Related decisions: