Are there special considerations to form a social or investment club?
It is highly recommended that one speak with a business attorney or tax accountant when forming a social or investment club even if the club is considered an informal gathering. Some clubs choose to organize as a nonprofit corporation in order to limit the liability for individual club members, especially when fund raising. Seek the advise of an attorney or tax accountant for further direction. Social Clubs Typically no license is required for a social club. Investment Clubs According to the Connecticut Department of Banking there is no special license required for investment clubs so long as there is no compensation for performing the service of investing money. Investment clubs are typically comprised of friends forming an informal group whereas a joint group decides how to invest the pooled money. If a business structure is formed and some form of compensation is received for the investment act(s), a Securities Investment Advisor Agent registration is required. Contact the agency: (
