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How Form Your Own Lottery Club


If you love the idea of winning the big lotto prize but simply don't like your chances of going it alone, you could always set up your own lottery club. This is a group of lotto players who pool all of their money together to buy lottery tickets. By buying a lot of tickets for a single drawing is going to increase your overall chances of winning the big prize.

In order for you to form a club like this, there are a few legal issues that will need to be taken care of before you and your friends can get started. This means you'll have to fill out some paperwork for the IRS and your state lottery commission. You will also need to draw up some bylaws for you club as well. Below is a guideline on how you can do this.

You will need to come up with a name for your lottery club and then set up an LLC. This is needed in order to get an Employer Identification Number or EIN from the IRS and you will need this in order for you to be able to claim prizes for a group of people. You can go to the IRS website and fill out their form for an SS-4 to get your EIN.

Another thing you can do is simply get an EIN for sole ownership. This means that you will need to designate one person from your club as your club's representative and they will be the one who officially runs your lottery club.

Once you have registered your club with the IRS, the next thing you will need to do is how you will split the money if your club happens to win the big jackpot. It should be pretty easy to decide, especially if each member contributes equally, the money should be split equally.

But, if for instance three people contribute $15 and another person contributes $35 towards the tickets the distribution will be the three at $15 would get 15/80 = 18.75% and the one who paid $35 would receive 35/50 = 43.75%.

The next thing you should do is to figure out how your club will pick the lottery numbers. To avoid any disagreements would be to simply use easy picks, let the computer pick the numbers at random. However, if the club members would rather pick their own numbers, make sure that the person who picks the right numbers doesn't expect that their winnings should increase because of it.

You should come up with a contract for all the club members to sign. Although this is not mandatory it does make the club run a lot smoother when they know they have signed an agreement.

If your club happens to end up holding a winning ticket you will need to fill out the form 5754 in order to claim your prize. You can find this on your state's lottery website. On the form you will fill in all the names of your club members along with their social security numbers in order to get the prize money.

Final Note: No matter how many members you have in your club always remember that you should always play responsibly and don't be careless with your money.





Comments
Gil Yach commented on 23-Feb-2016 05:40 AM
great. Thanks


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