Investment Club

Investment clubs are generally formed as General Partnership s, but could also be formed as Limited Liability Companies or Limited Liability Partnership s (in states that allow them). While an investment club could Incorporate , the Double Tax Treatment on corporate distributions makes the corporate structure less desirable than a partnership. Typically, a general partnership does not generate any tax liability on its own; instead, any tax liability is passed through to members each year. Investment club partnerships must file Form 1065 and Schedule K-1s with the IRS each year, and with states that require partnership filings. Investment Club Accounting Software , such as ICLUBcentral's Club Accounting 3, can facilitate the management of a club's books and the preparation of tax filings (through optional investment club tax printer software).

Investment clubs that focus on education can be a great vehicle for beginning investors. Clubs offer the structure and support that many people need to get started investing, and clubs make it possible to get into the market without a big initial investment, another incentive for new investors.

SEE ALSO

National Association Of Investors Corporation (also known as NAIC and BetterInvesting)

=External links==

Proshare Investment Club - The UK equivalent of NAIC

Investment clubs and the SEC - A good FAQ on investment clubs provided by the SEC.

List Of Finance Topics

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Investment Club