New Club Just Started

Charles L Tatum, II on

Hi Bivions,
My name is Charles. I am the (novice) organizer of an
investment club formed by family and friends. We are an LLC
and we opened our account with TD Ameritrade as an
Investment Club. None of us have any experience with
investment clubs and very little trading experience.

As I read through the messages I see that there is a lot
more to running an investment club than just pooling monies
and trying to make good trades. I am most concerned about
our partnership's relationship with our broker. I want to
be in compliance.

Can anyone recommend a good primer on running an investment
club.

Thanks,

Charles

Larry Reno on

Charles,

What part of the world are you in? There are Volunteers out there that are willing to help you and "hold your hand" while you are growing. I am always here and willing to help if no one else steps up. My e-mail is TLReno@aaaol.com if you want to contact me direct. Remember one thing, the only dumb questions is the one you don't ask!!

Larry Reno

Director

Georgia Chapter of BetterInvesting

www.betterinvesting.org/chapters/georgia

Good judgement comes from experience. Experience comes from bad judgement--Mark Twain.

Stay positive....Test negative!!

-----Original Message-----
From: Charles L Tatum, II via bivio.com <user*38654200001@bivio.com>
To: club_cafe@bivio.com
Sent: Tue, Dec 8, 2020 2:19 pm
Subject: [club_cafe] New Club Just Started

Hi Bivions,
My name is Charles. I am the (novice) organizer of an
investment club formed by family and friends. We are an LLC
and we opened our account with TD Ameritrade as an
Investment Club. None of us have any experience with
investment clubs and very little trading experience.

As I read through the messages I see that there is a lot
more to running an investment club than just pooling monies
and trying to make good trades. I am most concerned about
our partnership's relationship with our broker. I want to
be in compliance.

Can anyone recommend a good primer on running an investment
club.

Thanks,

Charles

Charles L Tatum, II on

Hi Larry,

We are based in San Francisco, CA.

Norman Gee on

You know that governor Newsom charges an $800 annual tax for LLC

On Tue, Dec 8, 2020 at 11:30 AM Charles L Tatum, II via bivio.com <user*38654200001@bivio.com> wrote:

Hi Larry,

We are based in San Francisco, CA.

Stuart Lange on

As a member of an investment club since the middle 80s, I would strongly (make that STRONGLY) encourage you to join Better Investing (see betterinvesting.org). They have a wealth of information and experience available to help new clubs, old clubs, and individual investors both run a club and make wise investment decisions. Even after nearly 40 years of club and personal investing, I would never try to do this solo. I'm sorry if I sound like a paid commercial for BI, but you will be hard-pressed to find a better resource.

On Tue, Dec 8, 2020 at 2:20 PM Charles L Tatum, II via bivio.com <user*38654200001@bivio.com> wrote:

Hi Bivions,
My name is Charles. I am the (novice) organizer of an
investment club formed by family and friends. We are an LLC
and we opened our account with TD Ameritrade as an
Investment Club. None of us have any experience with
investment clubs and very little trading experience.

As I read through the messages I see that there is a lot
more to running an investment club than just pooling monies
and trying to make good trades. I am most concerned about
our partnership's relationship with our broker. I want to
be in compliance.

Can anyone recommend a good primer on running an investment
club.

Thanks,

Charles

Kevin Gillogly on

Let me echo the other responses so far. Go to the SF Chapter of Better Investing. Why reinvent a wheel and cost yourself time and money. A LLC? I have started 2 clubs and in both cases I had well meaning, well intentioned individuals whose first words about organizing a club said "We should become an LLC." The cost of being one far outweighs the benefits of being one. But go to your local Chapter. There is a SF Model Investment Club. They are free and online and just 2 days from today. Listen to their club meeting and talk to them afterwards.

Good luck.

Kevin

On Tue, Dec 8, 2020, 2:49 PM Stuart Lange via bivio.com <user*25028600001@bivio.com> wrote:

As a member of an investment club since the middle 80s, I would strongly (make that STRONGLY) encourage you to join Better Investing (see betterinvesting.org). They have a wealth of information and experience available to help new clubs, old clubs, and individual investors both run a club and make wise investment decisions. Even after nearly 40 years of club and personal investing, I would never try to do this solo. I'm sorry if I sound like a paid commercial for BI, but you will be hard-pressed to find a better resource.

On Tue, Dec 8, 2020 at 2:20 PM Charles L Tatum, II via bivio.com <user*38654200001@bivio.com> wrote:
Hi Bivions,
My name is Charles. I am the (novice) organizer of an
investment club formed by family and friends. We are an LLC
and we opened our account with TD Ameritrade as an
Investment Club. None of us have any experience with
investment clubs and very little trading experience.

As I read through the messages I see that there is a lot
more to running an investment club than just pooling monies
and trying to make good trades. I am most concerned about
our partnership's relationship with our broker. I want to
be in compliance.

Can anyone recommend a good primer on running an investment
club.

Thanks,

Charles

Roy Chastain on

I second Kevin's suggestions. I am in a different chapter but know several directors on the SF Bay area Chapter's Board and they are very intelligent and helpful.

Thank you,
Roy Chastain
"I am coming to be quite contented learning to do very little - slowly." Lionel Hardcastle [In "As Time Goes By"]

On Dec 8, 2020, at 11:54 AM, Kevin Gillogly via bivio.com <user*9886100001@bivio.com> wrote:

Let me echo the other responses so far. Go to the SF Chapter of Better Investing. Why reinvent a wheel and cost yourself time and money. A LLC? I have started 2 clubs and in both cases I had well meaning, well intentioned individuals whose first words about organizing a club said "We should become an LLC." The cost of being one far outweighs the benefits of being one. But go to your local Chapter. There is a SF Model Investment Club. They are free and online and just 2 days from today. Listen to their club meeting and talk to them afterwards.

Good luck.

Kevin

On Tue, Dec 8, 2020, 2:49 PM Stuart Lange via bivio.com <user*25028600001@bivio.com> wrote:
As a member of an investment club since the middle 80s, I would strongly (make that STRONGLY) encourage you to join Better Investing (see betterinvesting.org). They have a wealth of information and experience available to help new clubs, old clubs, and individual investors both run a club and make wise investment decisions. Even after nearly 40 years of club and personal investing, I would never try to do this solo. I'm sorry if I sound like a paid commercial for BI, but you will be hard-pressed to find a better resource.

On Tue, Dec 8, 2020 at 2:20 PM Charles L Tatum, II via bivio.com <user*38654200001@bivio.com> wrote:
Hi Bivions,
My name is Charles. I am the (novice) organizer of an
investment club formed by family and friends. We are an LLC
and we opened our account with TD Ameritrade as an
Investment Club. None of us have any experience with
investment clubs and very little trading experience.

As I read through the messages I see that there is a lot
more to running an investment club than just pooling monies
and trying to make good trades. I am most concerned about
our partnership's relationship with our broker. I want to
be in compliance.

Can anyone recommend a good primer on running an investment
club.

Thanks,

Charles

Mike & Kim Potter on

Charles,

Ditto what Stuart says!! Plus if you have to pay $800 a year for your LLC that would really eat into your profits every year.

We are not organized as a LLC in our club. But Better Investing could probably advise you on that.

Good luck!!

Kim Potter, Treasurer

BI Brighton Model Investment Club

Brighton MI

On Tuesday, December 8, 2020, 02:49:40 PM EST, Stuart Lange via bivio.com <user*25028600001@bivio.com> wrote:

On Tue, Dec 8, 2020 at 2:20 PM Charles L Tatum, II via bivio.com <user*38654200001@bivio.com> wrote:

Hi Bivions,
My name is Charles. I am the (novice) organizer of an
investment club formed by family and friends. We are an LLC
and we opened our account with TD Ameritrade as an
Investment Club. None of us have any experience with
investment clubs and very little trading experience.

As I read through the messages I see that there is a lot
more to running an investment club than just pooling monies
and trying to make good trades. I am most concerned about
our partnership's relationship with our broker. I want to
be in compliance.

Can anyone recommend a good primer on running an investment
club.

Thanks,

Charles

Charles Bard on

Interesting phrase, BIvions. I like it.

You can find the San Francisco chapter at
https://www.betterinvesting.org/chapters/san-francisco-bay-area
Look under local events for the model club meeting.
Look under Visit-A-Club for clubs that allow visitors.

Charles Bard

-----Original Message-----
From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Charles L
Tatum, II via bivio.com
Sent: Tuesday, December 8, 2020 2:19 PM
To: club_cafe@bivio.com
Subject: [club_cafe] New Club Just Started

Hi Bivions,
My name is Charles. I am the (novice) organizer of an investment club
formed by family and friends. We are an LLC and we opened our account with
TD Ameritrade as an Investment Club. None of us have any experience with
investment clubs and very little trading experience.

As I read through the messages I see that there is a lot more to running an
investment club than just pooling monies and trying to make good trades. I
am most concerned about our partnership's relationship with our broker. I
want to be in compliance.

Can anyone recommend a good primer on running an investment club.

Thanks,

Charles

ira smilovitz on

I am surprised that you chose the LLC route. Most investment clubs are general partnerships, partially because LLCs generally don't provide any additional protection for the members, and secondarily because most states assess an annual fee for the privilege of being an LLC. Some states, notably CA and NY charge very high minimum annual fees for LLCs.

Ira Smilovitz, EA

On Tue, Dec 8, 2020 at 2:32 PM Norman Gee via bivio.com <user*125100001@bivio.com> wrote:

You know that governor Newsom charges an $800 annual tax for LLC
On Tue, Dec 8, 2020 at 11:30 AM Charles L Tatum, II via bivio.com <user*38654200001@bivio.com> wrote:
Hi Larry,

We are based in San Francisco, CA.

Rg R on

Just another supporting voice. As a family investment club (General Partnership) we have been with and used the many resources of Better investing for 29 years. We also have been using TD Ameritrade as our broker without any hitches. Between them and an online accounting service (in our case Bivio), we have all we need for a successful 4 generation family club!!

Wishing you good investing with knowledge!

On Tue, Dec 8, 2020 at 2:04 PM Mike & Kim Potter via bivio.com <user*22890200001@bivio.com> wrote:

Charles,
Ditto what Stuart says!! Plus if you have to pay $800 a year for your LLC that would really eat into your profits every year.

We are not organized as a LLC in our club. But Better Investing could probably advise you on that.

Good luck!!

Kim Potter, Treasurer
BI Brighton Model Investment Club
Brighton MI

On Tuesday, December 8, 2020, 02:49:40 PM EST, Stuart Lange via bivio.com <user*25028600001@bivio.com> wrote:

As a member of an investment club since the middle 80s, I would strongly (make that STRONGLY) encourage you to join Better Investing (see betterinvesting.org). They have a wealth of information and experience available to help new clubs, old clubs, and individual investors both run a club and make wise investment decisions. Even after nearly 40 years of club and personal investing, I would never try to do this solo. I'm sorry if I sound like a paid commercial for BI, but you will be hard-pressed to find a better resource.

On Tue, Dec 8, 2020 at 2:20 PM Charles L Tatum, II via bivio.com <user*38654200001@bivio.com> wrote:
Hi Bivions,
My name is Charles. I am the (novice) organizer of an
investment club formed by family and friends. We are an LLC
and we opened our account with TD Ameritrade as an
Investment Club. None of us have any experience with
investment clubs and very little trading experience.

As I read through the messages I see that there is a lot
more to running an investment club than just pooling monies
and trying to make good trades. I am most concerned about
our partnership's relationship with our broker. I want to
be in compliance.

Can anyone recommend a good primer on running an investment
club.

Thanks,

Charles

Charles L Tatum II on

Can I switch to a General Partnership?

Sent from my iPhone

On Dec 8, 2020, at 12:14 PM, ira smilovitz via bivio.com <user*2883400001@bivio.com> wrote:

I am surprised that you chose the LLC route. Most investment clubs are general partnerships, partially because LLCs generally don't provide any additional protection for the members, and secondarily because most states assess an annual fee for the privilege of being an LLC. Some states, notably CA and NY charge very high minimum annual fees for LLCs.

Ira Smilovitz, EA

On Tue, Dec 8, 2020 at 2:32 PM Norman Gee via bivio.com <user*125100001@bivio.com> wrote:

You know that governor Newsom charges an $800 annual tax for LLC
On Tue, Dec 8, 2020 at 11:30 AM Charles L Tatum, II via bivio.com <user*38654200001@bivio.com> wrote:
Hi Larry,

We are based in San Francisco, CA.

Charles L Tatum II on

I saw Bivions on the message board.

Sent from my iPhone

On Dec 8, 2020, at 12:43 PM, Charles L Tatum II <40acreclub@gmail.com> wrote:

Can I switch to a General Partnership?

Sent from my iPhone

On Dec 8, 2020, at 12:14 PM, ira smilovitz via bivio.com <user*2883400001@bivio.com> wrote:

I am surprised that you chose the LLC route. Most investment clubs are general partnerships, partially because LLCs generally don't provide any additional protection for the members, and secondarily because most states assess an annual fee for the privilege of being an LLC. Some states, notably CA and NY charge very high minimum annual fees for LLCs.

Ira Smilovitz, EA

On Tue, Dec 8, 2020 at 2:32 PM Norman Gee via bivio.com <user*125100001@bivio.com> wrote:

You know that governor Newsom charges an $800 annual tax for LLC
On Tue, Dec 8, 2020 at 11:30 AM Charles L Tatum, II via bivio.com <user*38654200001@bivio.com> wrote:
Hi Larry,

We are based in San Francisco, CA.

ira smilovitz on

In order to switch to a general partnership, you will have to cancel your LLC with the CA Secretary of State, file any outstanding tax returns, and pay any outstanding fees and taxes. You will have to satisfy any CA rules for establishing a general partnership. I believe you can continue to use the same EIN since that is assigned by the IRS and is associated with your tax status as an entity.

Ira Smilovitz, EA

On Tue, Dec 8, 2020 at 3:44 PM Charles L Tatum II via bivio.com <user*38654200001@bivio.com> wrote:

Can I switch to a General Partnership?

Sent from my iPhone

On Dec 8, 2020, at 12:14 PM, ira smilovitz via bivio.com <user*2883400001@bivio.com> wrote:

I am surprised that you chose the LLC route. Most investment clubs are general partnerships, partially because LLCs generally don't provide any additional protection for the members, and secondarily because most states assess an annual fee for the privilege of being an LLC. Some states, notably CA and NY charge very high minimum annual fees for LLCs.

Ira Smilovitz, EA

On Tue, Dec 8, 2020 at 2:32 PM Norman Gee via bivio.com <user*125100001@bivio.com> wrote:

You know that governor Newsom charges an $800 annual tax for LLC
On Tue, Dec 8, 2020 at 11:30 AM Charles L Tatum, II via bivio.com <user*38654200001@bivio.com> wrote:
Hi Larry,

We are based in San Francisco, CA.

Laurie Frederiksen on

You can find the basic steps you need to take to get set up correctly here:

How To Start an Investment Club

You don't want to make it any more difficult than it needs to be. The steps outlined have worked fine for thousands of clubs for many many years.

There is a reason they are outlined as they are. It's best to just go with what is known to get set up so you can get started with your investing which is the fun part!

Laurie Frederiksen
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On Tue, Dec 8, 2020 at 3:58 PM ira smilovitz via bivio.com <user*2883400001@bivio.com> wrote:

In order to switch to a general partnership, you will have to cancel your LLC with the CA Secretary of State, file any outstanding tax returns, and pay any outstanding fees and taxes. You will have to satisfy any CA rules for establishing a general partnership. I believe you can continue to use the same EIN since that is assigned by the IRS and is associated with your tax status as an entity.

Ira Smilovitz, EA

On Tue, Dec 8, 2020 at 3:44 PM Charles L Tatum II via bivio.com <user*38654200001@bivio.com> wrote:
Can I switch to a General Partnership?

Sent from my iPhone

On Dec 8, 2020, at 12:14 PM, ira smilovitz via bivio.com <user*2883400001@bivio.com> wrote:

ï»¿
I am surprised that you chose the LLC route. Most investment clubs are general partnerships, partially because LLCs generally don't provide any additional protection for the members, and secondarily because most states assess an annual fee for the privilege of being an LLC. Some states, notably CA and NY charge very high minimum annual fees for LLCs.

Ira Smilovitz, EA

On Tue, Dec 8, 2020 at 2:32 PM Norman Gee via bivio.com <user*125100001@bivio.com> wrote:

You know that governor Newsom charges an $800 annual tax for LLC
On Tue, Dec 8, 2020 at 11:30 AM Charles L Tatum, II via bivio.com <user*38654200001@bivio.com> wrote:
Hi Larry,

We are based in San Francisco, CA.

Mail