The SEC gives guidelines to use to determine whether your group can be considered an investment club or whether you are a more complex investment business which will have to register with them. One of the questions they use is whether all members actively participate in club operations. In a typical investment club, different members contribute their time and energy to filling the various roles the club needs to function. Clubs do not usually compensate members in any special way for their efforts. This paragraph spells that out.

In addition, compensating partners for providing services to a club will result in partnership accounting and tax issues you would need to deal with that are not handled by bivio.

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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.