This is not investment advice. The information provided is for educational and informational purposes only and does not constitute a recommendation to buy or sell any financial product.
Businesses, LLCs, and trusts can open brokerage accounts to invest surplus cash or manage assets according to a trust document. The process requires more documentation than an individual account.
Types of business accounts
LLC brokerage account. A limited liability company can open a brokerage account in the LLC's name. The operating agreement must authorise the account. The members or managers designated in the operating agreement control trading.
Corporate brokerage account. A C-Corp or S-Corp opens an account in the corporate name. A corporate resolution or board consent must authorise the account and name the individuals authorised to trade.
Partnership account. A partnership opens an account in the partnership's name. The partnership agreement must authorise it.
Sole proprietorship. A sole proprietor opens an account under their own name using a DBA (doing business as). The process is similar to an individual account.
Trust account. A trustee opens an account in the trust's name for the benefit of the trust beneficiaries. The trust document must authorise the account and specify the trustee's powers.
Documentation requirements
| Entity Type | Required Documents |
|---|---|
| LLC | Operating agreement, EIN letter, articles of organisation |
| Corporation | Corporate resolution, EIN letter, articles of incorporation |
| Partnership | Partnership agreement, EIN letter |
| Trust | Trust document (or certificate of trust), EIN letter |
| Sole proprietorship | DBA registration, personal SSN/EIN |
Most brokers require original or certified copies. The approval process takes longer than an individual account — expect 1-2 weeks.
Tax treatment
- LLC/Partnership/Sole proprietorship: Income passes through to the owners' personal tax returns. The account itself does not pay tax.
- C-Corporation: The account's income is taxed at the corporate level. Dividends paid to shareholders are taxed again.
- S-Corporation: Income passes through to shareholders.
- Trust: Taxation depends on the trust type (simple trust, complex trust, grantor trust). Consult a tax professional.
Brokers offering business accounts
| Broker | LLC/Corp | Trust |
|---|---|---|
| Fidelity | Yes | Yes |
| Charles Schwab | Yes | Yes |
| Interactive Brokers | Yes | Yes |
| Vanguard | Yes | Yes |
| E*TRADE | Yes | Yes |
| Robinhood | No | No |
| Webull | No | No |
Common questions
Should I invest through my LLC or personally? For most small business owners, investing personally is simpler. An LLC brokerage account is appropriate when the LLC has substantial surplus cash to invest or when asset protection is important.
Can I trade options in a trust account? Yes, at most brokers. The trustee must have the authority under the trust document, and the options approval process evaluates the trust's financials.
Is a trust account the same as a transfer-on-death (TOD) account? No. A TOD designation on an individual account transfers assets to a named beneficiary when you die, without a trust document. A trust account holds assets in the trust's name according to the trust terms.
Where to start
Contact Fidelity or Schwab — both have dedicated business account teams. Gather your entity documents before applying. Read the account types hub for other account types.