b"Each members profit share would be determined by calculating their percentage interest. This is calculated based on how much they invested in relation to the total amount all members contribute.Rules for Your Investment ClubFrom a regulatory perspective:1.You cant use a manager-managed limited liability company or each investment could be considered its own securities offering. This would require selection of an exemption, securities compliance, investor suitability determinations, etc., which would drive up your legal costs, exclude non-sophisticated investors, and create fiduciary responsibilities for the club organizers. 2.The operating agreement would designate: a.Who is authorized to open and close bank accounts and sign checks, andb.Who can sign a subscription agreement on behalf of the group, andc.For security, each of the above should include at least two unrelated club members. 3.Your group must be limited to less than 100 members so it doesn't have to register as an investment company. However, you have to be careful about how you count members as a limited liability company with multiple members may count as more than one member. 149"