An investment club can be an entertaining way to buy and sell stock. Members of the club learn about different companies, industries and investing. Plus the monthly club meetings provide a social element to the investing process.

Below are some recommendations to help you start and investment club.

The first step is to determine the interest level. Discuss the idea of an investment club with friends, family, co-workers and other associates to determine if anyone is interested in starting a club.

Try to recruit members with similar Vclubshop investment goals. It is probably better to recruit members that have an interest in long term investing.  Investment clubs are not usually a get rich quick scheme.

Having members with a variety of expertise, interest and life experiences can benefit your club.  Having input from a diverse group may be helpful when making investment decisions.

A membership of 10 to 20 investors should be a good size for an investment club. Too few members will result in a lack of funds to invest.  Input from too many investors may lead the club astray of their investment objective.

After recruiting a base of members, you should arrange a preliminary meeting. During this meeting and maybe the next couple of meetings determine a name for the club, develop a mission statement, decide on the type of entity and write an operating agreement.

The name of the club can be almost anything. It would probably be wise to check with Vclubshop your Secretary of State to determine if there are restrictions or requirements regarding the naming of an investment club.

The mission statement should be a brief explanation of the purpose of the investment club and include the investment goals.

The entity type can be a simple partnership, limited liability partnership or corporation. You should contact the Secretary of State Office in your state to determine the types of forms, licenses and other requirements for each type of entity. You may even consider talking to a CPA and/or attorney. An even better idea is to invite a CPA and attorney to join your club.

You will need a federal tax identification number (EIN) for the club. A CPA can help you with this.

The operating agreement is a very important document. The operating agreement should include all of the details on how the club is to operate. It should be a written agreement and signed by every member of the investment club.

 As a minimum the operating agreement should address the following areas:

Define when and how often the club will meet. Clubs typically meet at least Vclubshop monthly.

There should be a maximum number of members. Twenty is probably a good number as a maximum.

Agree on the initial member contribution amount and the monthly member contribution requirements. For example: The agreement may require an initial buy in amount of $500.00. The monthly contribution amount should be reasonable to encourage people to join. A range of $50.00 to $200.00 for monthly contributions is recommended.

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