Not an expert nor have experience in that, but if you just want to trade, you can well just set up a private company and apply for an institutional account in some brokers.
However, I have heard stories about setting up a trading partnership/company with friends - and ending in disaster.
Not that you can't make money from it, but if you involve money in friendships, and if you can't handle it correctly, you'll end up losing the friends even if you are making money.
Why? Trading, I believe, is a solo sport. You may have a team to help you, but decisions can ONLY be made by one person. It's like the driver in a car, you only need one, it's impossible for two or more people driving together.
People have different expectations. Even for people trading the same method, they may (yes they will) have argument about entries and exits. Not to mention that people have different appitites for risk as well as different trading styles.
However, the problem can be solved - by setting up rules among yourselves and be abide to them. The most important rule, I think, is to let one person do all final decisions, and others cannot interfere. If that "chief trader" fails to do well then you may vote to replace him.
Of course, your friends may be more sophisticated than this and may not have such problems. Anyway, good luck.
