Your Club Site is very useful when moving on to the other steps. You will be able to share draft partnership agreements in the Files area, discuss which broker to use in the Mail area, and enter information required by your broker in the Roster . Get Your Club Legally Organized You should consider establishing a partnership format for your investment club. We suggest using the sample partnership agreement supplied by the NAIC . Each club member must sign a copy of the partnership agreement.
Most clubs also establish bylaws or Operating procedures that every club member needs to approve.
Although you don't need bylaws to operate your club, it would be useful to have these spelled out at the beginning to avoid possible problems or questions later on. Forming your investment club as a partnership requires compliance with certain Internal Revenue Service regulations. You can either download and print these forms, or you can fill them out directly online. Down load your free Acrobat Reader. This needs to be completed before the investment club opens its brokerage or bank account.