Started an Investment Club (brokerage, mutual fund, commission, stock market)

[Shikaka805]

Hey Guys!!!

Four of my buddies and I just recently opened a Stock Market Investment Club with a brokerage company. We have already made some bylaws and an operating agreement that everybody in the club signs, but does anybody have any advice or experience? Anything helps!

Oh, we also had to apply to get a Tax Payers ID Number (TIN or also known as EIN). I am a little nervous about this and don't want to brake any tax codes/rules and stay on track. Can anybody ease the nerves?

THANKS!!!

[Urdahere]

I highly suggest that you take a look at The National Association of Investors Corp. This organization has written the books for Investment Clubs. They can be found at http://www.better-investing.org/Public/default

Good luck.

Joe

[windtimber]

Originally Posted by Urdahere

I highly suggest that you take a look at The National Association of Investors Corp. This organization has written the books for Investment Clubs. They can be found at http://www.better-investing.org/Public/default

Good luck.

Joe

Excellent advice. Several of us started an Investment Club nearly 20 years ago using NAIC material. Still belong all this time later - learned lots about investing and have had good success with total club assets into 6 figures.

[StealthRabbit]

yes, use (and subscribe) to NAIC

and... BE SURE to file your 1099's and return for the club... getting a $2500 fine for slipping up one time will cure that problem (all for not reporting $13.00 of distributions...).... Trying to manage an investment club composed of nieces and nephews from all over the country... and the accountant 'forgot' to file...

[richson]

Originally Posted by Shikaka805

Hey Guys!!!

Four of my buddies and I just recently opened a Stock Market Investment Club with a brokerage company. We have already made some bylaws and an operating agreement that everybody in the club signs, but does anybody have any advice or experience? Anything helps!

THANKS!!!

we have a same experience :
we have portfolio in Stock Exchange and we accept money to trade on them
we have so many problem when we get small money , if you want to trade with their money, the big problem is small money , you have to do any action you do with the big one and your commission is low
we made a Mutual Fund to solve this problem