frame left frame top frame right
Investment Club header image
frame bottom
 
MENU
ARTICLES
BOOKS
The Elements of Investing
The Elements of Investing
by Burton G. Malkiel Charles D. Ellis
Our Price: $13.57
Used from: $11.13

Investing For Dummies, Fifth edition
Investing For Dummies, Fifth edition
by Eric Tyson
Our Price: $14.29
Used from: $10.88

Rich Dad's Advisors: Guide to Investing In Gold and Silver: Protect Your Financial Future
Rich Dad's Advisors: Guide to Investing In Gold and Silver: Protect Your Financial Future
by Michael Maloney
Our Price: $11.55
Used from: $6.99

The Neatest Little Guide to Stock Market Investing
The Neatest Little Guide to Stock Market Investing
by Jason Kelly
Our Price: $10.88
Used from: $8.88

Stock Investing For Dummies
Stock Investing For Dummies
by Paul Mladjenovic
Our Price: $11.00
Used from: $11.00

Preparing the Proper Paperwork Required to Start an Investment Club

Just about anything you want to do which includes mixing your cash with the cash of others include some type of paperwork to be done. This is also the case when you start an investment club. The good news is that your investment club does not require a lot of paperwork to be completed before you can begin making trades. Most of the paperwork to be handled after the club is established will be much more enjoyable because it will pertain to the purchase and sell of stocks.

 

Most individuals who begin an investment club will do so by forming it as a partnership. By making your club a partnership, it is a lot easier when dealing with the inevitable taxes. Your group will have to file the proper paperwork for this, which includes an SS4 form, which is for the group's EIN, or Employee Identification Number. These forms can be downloaded directly from the Internal Revenue Service's web site. Once you fill out the form and send it back in via fax, you can get your EIN almost immediately. At tax time, your group members will have to individually fill out and file a Schedule K for their tax returns.

You should also look into filing your group as a business within your community. Depending on where you live, the rules governing investment clubs may vary considerably, so do your homework by contacting the proper local offices. Usually it is just a quick form filled out with the name of your club being registered.

Your group will have need of a brokerage or bank account. This will need to be covered at the first meeting, and a decision reached by the members. Whether you decide on a brokerage or bank account, you will need to supply a copy of the group's Articles of Incorporation or you Partnership Agreement. These forms can also be downloaded from online, and you need to take them already filled out with you to open the group account.

For the majority of investment clubs, the only kind of major legal issues which will need to be taken care of is the taxes. Each member of the group is responsible for filing any profits made within the year on their income tax return. If the group suffers a loss instead of a profit, then each individual would file the loss as a deductible expense on their income tax return. Any expenses the members have from the club can also be deducted, like the brokerage fees. Of course any tax issues should be dealt with by a professional tax preparer or an accountant.

Investment Club Recommended Products


SPONSORED LINKS
 
 
Investment Club News

Regent Investment Clubs, Inc. - Coast to Coast in 26 Months

Folsom, CA (PRWEB) June 25, 2007 -- It is always a call for a celebration every time Regent Investment Clubs, Inc. opens a new club. But the celebration on July 25th will be more festive than normal...

Read more...


Trading Stocks Made Easy - Sponsored Link

Ad - We'll teach you how to make over 400% on one trade, for FREE. Sign up today!

Read more...


SEC Says "Psychic" Scammed Investors

gains" along with unspecified fines. Morton, 51, allegedly lied repeatedly to more than 100 investors in his Delphi Investment Group, which the SEC says "was not an actual company but was simply a moniker Morton used." He falsely claimed investor funds

Read more...


Moody's downgrades seven UAE state-owned companies

ratings service says it has downgraded the ratings for seven government-owned firms in the United Arab Emirates, including investment company Mubadala. Moody's says its rating for Abu Dhabi-owned Mubadala, which manages a portfolio of billions of dollars

Read more...


Both Lucky And Good, Johnson Wins Auto Club 500 At Fontana

NASCAR Sprint Cup championships. Johnson’s latest good luck came this past Sunday in the Sprint Cup Auto Club 500, as he was able to win his fifth race at the California track. “Fortune certainly played a part in today’s win,” said Johnson. “We

Read more...


 
 
Copyright 2010. All rights reserved.
bottom bar