Partnership Brokerage Considerations

Your club will need to open a brokerage account. We recommend that you use one of the brokerages supported by our AccountSync automatic data entry service. (List)

Most clubs want to choose investments themselves so they agree not to have a broker as a member. In addition, many brokers are not allowed to be members of a club. If your club does plan to have a broker as a member, you will need to adjust the wording in this paragraph appropriately.

The broker you choose will probably have their own requirements for what information you will need to furnish to authorize opening the club account and making transactions in it. You will need to follow their rules. Your Operating Procedures should specify which partners are authorized to make transactions.

If there is still any question, especially if you are asking to make a stock transfer in the event of a withdrawal, the second two paragraphs of this section can be shown to your brokerage and may make it easier to complete the transaction.

Check with your brokerage to determine what their specific requirements are for notification if you change your partnership agreement or membership.

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Disclaimer: statements are opinions expressed by bivio Customer Support and are not official statements from any government agency. These statements are not intended to replace professional legal or accounting advice. When in doubt, follow the advice of your lawyer or accountant who is familiar with your particular circumstances and the laws of your state.