Hello, I'm interested in finding out if anyone has ever had
problems with creating an international investment club.

Problems with taxes, reporting members to the brokerage
account office, etc...

You will have major headaches to deal with. You will have to withhold taxes on some/all of your foreign members. There are significant additional paperwork requirements.

 

Based on what you have described in the rest of your post, there is a good possibility that your club may fall under SEC regulation as a mutual fund regardless of whether you accept international members or not. (It's not clear how much decision making power is in the hands of the members.)

 

At a minimum, I would review the instructions for Form 1065, paying close attention to the questions on Schedule B and the additional requirements imposed when specific answers are provided.

 

I would also review the SEC guidelines on what entities fall under its regulation.

 

Ira Smilovitz