Starting An Online Investment Club - Part 3
By Ultimate Trading
Organizing Your Online Investment Club
In parts 1 and 2 of this series I gave some broad guidelines on the
business set up of your
club. In this article well go into some more detail. First off,
your online investment club will need to decide what type of
business entity it is. An online investment club can be a
corporation, general partnerships, or limited liability
partnerships. Each of these business models has their own advantages
· Corporation. Your online investment club may want to avoid
becoming a corporation. This is because corporations are taxable
business entities that require a great deal of accounting knowledge
to be run smoothly in accordance with government regulations.
· General partnership. This type of business model requires less
paperwork and knowledge about taxes and other financial issues. Most
online investment clubs choose a general partnership as their choice
of a business entity. With this model, general taxes are passed on
to each partners tax returns. This type of business model will let
you accomplish what you need to do to run your investment club with
the least amount of tax issues.
· Limited liability corporations. This type of a business model is
much like the general partnership but it gives individual members of
your online investment club a bit more liability protection. Keep in
mind that this type of business entity can be expensive and will
need more paperwork.
The online investment club will need to decide which business model
suits its needs best, and declare it when the online investment club
is registered. What information is required to register your online
investment club depends on where you are located. Each government
has slightly different expectations, and youll need to contact your
local government to determine what yours requires. If you live in
the United States you can contact the Office of the Secretary of
State for more information about registering your online investment
club at http://www.nass.org/sos/sosflags.html
The United States will assign a Federal Tax ID Number to your online
investment club. Youll need to use this number on all your tax
returns, and youll also need the ID number to deal with your
brokerage firm and your bank when youre opening up accounts for
your online investment club.
To obtain a Federal Tax ID Number you need to get an IRS Form SS-4,
which can be obtained at any local library. Or you can contact the
IRS website directly on the Internet to obtain a copy at
The procedure, and process, of obtaining a government ID number for
tax purposes will vary depending on what country you live in. But no
matter what country that you live in, its important that you
request your Tax ID Number as soon as you can to avoid delay to your
Youll also want to come up with an appropriate mission statement
for your online investment club. This isnt something that you need
to do right away, but within a few months of your start up the
online investment club should have one in place. Your mission
statement should state, in two or three sentences, the reason your
online investment club was formed and what it hopes to accomplish.
For example, your mission statement could be: to improve members'
understanding of investment management; to help members develop
practical investment skills and test them in the markets; and to
double their investment within five years.
Youll want to write down your mission statement and make sure that
each member of the
club, and any future members, has a copy of the mission
statement. Your mission statement will keep your online investment
club focussed on the goals it has set and keep it moving towards
About To Learn Secrets Most Traders Will Never Know About Profitable System Trading..."
Inside you’ll learn...
to design a winning system from scratch and exactly what
to do to supercharge your current stock trading system!
one ingredient you literally "Drop" into your
stock trading system that can triple your profit!
to use “secret” money management techniques
to minimize your risk.
tools the professionals use and how you can get huge discounts
(charting software, data, etc).
you'll also get a FREE copy of David Jenyns’ complete
Ultimate Trading Systems Course…
Just enter your name & email - then click the “Click
Here For Free Instant Download!” button. (All information
kept 100% confidential). The download details will be
emailed to you immediately.
take your privacy very seriously. My
personal privacy guarantee to you. I respect your privacy
and will never share your email address with anyone. You can
easily unsubscribe at any time. View our Privacy
Policy - David Jenyns Founder of www.ultimate-trading-systems.com
Online Investment Club