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June 24, 2011 2:34 PM   Subscribe

How should my brother and I manage a new joint slush fund?

My brother and I have invested in a venture that is going well (knock wood etc.). We have all the legal stuff in place to govern how we are paid out, with the exception of a new hiccup we'd like to create for ourselves: we'd both like to set aside x% of our earnings into a joint "slush fund" (for lack of a better term). Depending on how big it grows, this money could be used for any number of activities: a fun vacation together, or perhaps a small investment in a local start-up, or to hire a freelancer to try to build that computer game we've always talked about, or as a small portfolio of a few stocks we each pick for friendly competition against each other, or (and maybe most compellingly) just to pay for all of our families' meals out together so we never have to deal with the "is it my turn or yours" nonsense.

We tend to think very alike on things, and are both equally excited about this idea... but a little lost on how we might be able to put it in place. Should we create a tiny LLC (since this fund may go toward the freelancer, for example, or other actual investments)? Or should we just create a joint checking account? Or is there an even more elegant approach that we're not thinking of?

YANML, YANMA, etc.

Thank you, hivemind!
posted by anonymous to Work & Money (2 answers total)
 
I have a joint account with my sister through ING. It's fairly easy to setup a joint account there and both of us both have ING accounts individually.

We don't have much of a joint account vision at the moment but do use the account for vacation funding. It's incredibly simple to transfer money between the two of us and fairly easy to audit transactions if you need to.
posted by countrymod at 5:45 PM on June 24, 2011


On LLC seems to be vast overkill. I would just open a joint checking account but first write out a memo of understanding - who puts money in, who can take it out, what it can be spent on, what happens if you disagree about a specific expense, what happens if one person want to get out. Depending on the dollars and your relationship, you might want to have a lawyer write it up officially after the two of you have agreed on what it says. The lawyer might also think of questions that should be answered in advance that you had missed. (like how to take care of any taxes).
posted by metahawk at 11:22 PM on June 24, 2011


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