excuse my horrible typing and grammar, I type way to fast

I would personally start it with an LLC then you can choose to elect the LLC to
be treated to be taxed as an S corp or a C corp. The C corp would be a bad
choice because you would pay tax Corporate Tax rate on profits and then the
profits flow back to the share holders as dividends, so you get doubled tax.
With selecting LLC with S Corp tax status you get the better tax rate because
the profit flows back to the share holders at their own personal tax rate. If
you don't really need the C or S corp status just go with regular LLC. You can
always change your corporate status later. I would get a layer to handle the
incorporating of your investment club verses doing it online. because you may
need extra legal protection to aid what your doing.

Good Luck

Definitely LLC

Whether you want to use an LLC depends a lot on your state LLC laws. They are
not uniform between the states like partnerships. An LLC can also cost quite a
bit to form and maintain - bylaws, annual fees, etc.

NAIC's website also has some info about investment clubs:
http://www.betterinvesting.org/public/default

Best to take a step back and perform due diligence via thorough homework/review;
otherwise, one slight shortcut is likely to generate correspondence that will
create anxiety and cost dear time to what should be an enjoyable experience.

http://www.investmentclubhelp.com/

http://www.ag.ndsu.edu/pubs/yf/fammgmt/fs583w.htm

http://www.ideamarketers.com/?7_Tips_On_Starting_A_Stock_Investment_Club_Success
fully&articleid=199297&from=PROFILE

Trading/investing is a marathon and not a sprint . . . so there is plenty of
time to establish a trading or investment group in the proper manner with a
reasonably good understanding - especially of recommended and required
paperwork/recordkeeping.

Best trading/investing to you.

Case,
Be extremely careful. An LLC will shield you some but that does not stop someone
from suing. There is a legal term called "piercing the corporate veil"
that can be used. You may want to do some research on its use.

As long as you are making $ everything is fine. When we are in an environment
such as the present that is when animosities can result. IMO, if you value these
people as long term friends I would stay away. In the end, it all comes down to
$ or the lack of it...