when setting up an investment club the following steps are recommended 
in general investment clubs are unregulated in united states the sec requires any entity with more that 25 million to register under the investment advisers act of 1940 3 individual states may require registration but generally investment clubs do not have to if they have a small number of clients or participants in the united kingdom investment clubs are considered unincorporated associations and are not regulated or taxed as corporations in each case individual members are responsible for reporting gains and losses on their individual tax returns in the u s income earned by investment club members is treated as partnership pass through income as such members are required to file a form 1065 and a schedule k 1 each year 2 in the u k investment club members are required to file form 185 capital gains tax investment club certificate 4an investment club usually refers to pooled money being managed by members through an established structure but there are alternatives that also use the name informal investment clubs exist online and in the real world where members simply meet to discuss investing and what they are looking at the members of these informal investment clubs can then choose whether or not to trade a particular asset that was discussed in their personal portfolio moreover the advent of low and no fee brokerage accounts have removed one of the key advantages to investment clubs in terms of lower overall commissions and fees this may well lead more people to join informal investment clubs for the knowledge and insight without the commitment 