A business brokerage account lets your LLC, corporation or sole proprietorship invest in its own name. Three things sort the options: whether the broker takes your type of business, how much you need to start, and whether you can apply online or have to send in a form.
Top picks
Fidelity
Interactive Brokers
Charles SchwabDetails verified on each broker’s own site at this update. Terms apply.
Compare business brokerage accounts
| Broker | Entity types | Account minimum | Commissions | How to open | |
|---|---|---|---|---|---|
| Fidelity | Corporations, LLCs, partnerships, sole proprietors, nonprofits | $0 | $0 online | PDF application | See Fidelity |
| Interactive Brokers | Corporations, LLCs, partnerships, unincorporated businesses | $0 | $0.005 a share | Online | See IBKR |
| Charles Schwab | Corporations, LLCs, partnerships, sole proprietors, investment clubs | $100,000 | $0 online | Paper application | See Schwab |
| Vanguard | Corporations, LLCs, partnerships, sole proprietors, foundations | None listed | $0 online | Online; new clients call | See Vanguard |
| E*TRADE | Corporations, LLCs, partnerships, sole proprietors, nonprofits | None listed | $0 online | PDF application | See E*TRADE |
| Merrill | Corporations, LLCs, partnerships, sole proprietors | None listed | $0 online | PDF application | See Merrill |
| TradeStation | Corporations, LLCs, partnerships, sole proprietors, trusts | None listed | $0 plus clearing fee | Online | See TradeStation |
| Webull | LLCs, C corporations and S corporations only | $100,000 | $0 | Online | See Webull |
The 8 best business brokerage accounts
1. Fidelity Account for Businesses
Best overallWhy we picked it No minimum, no annual account fee and $0 online trades on U.S. stocks and ETFs. The application covers nearly every business structure, including sole proprietors and nonprofits.
- No minimum, no annual account fee
- SEP IRA and solo 401(k) available
- No online application
- New customers mail a 15-page PDF
Fidelity Brokerage Services LLC, Member NYSE, SIPC. $0 applies to online U.S. stock and ETF trades; options cost $0.65 per contract. Uninvested cash sits in a money market fund, which is not FDIC insured. Sole proprietors need no extra documents.
2. Interactive Brokers small business account
Best for active tradersWhy we picked it The whole application is online, and several people can share one account with permissions you set. Business accounts pay per share because they cannot use the commission-free IBKR Lite plan.
- Fully online application
- Pays interest on idle cash
- $0.005 a share, $1 minimum
- IBKR Lite is closed to businesses
Interactive Brokers LLC, member NYSE, FINRA, SIPC. Pricing shown is IBKR Pro Fixed for U.S. stocks and ETFs, capped at 1% of trade value. At this update it advertised up to 3.38% on idle U.S. dollar cash, with the full rate for accounts of $100,000 or more. Rates change.
3. Schwab One Organization Account
Best for $100,000 or moreWhy we picked it Schwab charges nothing to open or keep the account and gives you access to a Financial Consultant at no additional cost. The hurdle is a $100,000 minimum, counted across all of your Schwab accounts.
- No fee to open or maintain
- A consultant at no extra cost
- $100,000 across Schwab accounts
- No online application
Charles Schwab & Co., Inc., Member SIPC. $0 applies to online listed stock and ETF trades; options cost $0.65 per contract. Schwab says the minimum may be higher in certain cases, and eligibility rules apply to a dedicated consultant. TD Ameritrade is now part of Schwab, and its website redirects there.
4. Vanguard organization account
Best for index fund investorsWhy we picked it You pay no commission to trade ETFs, stocks or Vanguard mutual funds online, and you can buy any ETF for the price of one share. It fits a business that wants to buy a few funds and hold them.
- 150+ Vanguard mutual funds, 70 ETFs
- $25 fee waived with e-delivery
- New clients have to call first
- Review takes five business days
Vanguard charges a $25 annual account service fee on brokerage accounts unless you choose e-delivery or hold at least $5 million in qualifying Vanguard assets. The two documents are proof the organization exists and a document naming who may trade.
5. E*TRADE business brokerage account
Best for options tradersWhy we picked it Online stock, ETF and options trades are $0, and the options contract fee drops from $0.65 to $0.50 once you make 30 trades a quarter. Separate business applications cover futures and portfolio margin.
- Options fee can drop to $0.50
- Accepts nonprofits
- 14-page PDF you mail or fax
- Certificate of Secretary required
Securities products are offered by Morgan Stanley Smith Barney LLC, Member SIPC. $0 applies to online U.S.-listed stock, ETF and options trades, with exclusions. Sole proprietors skip the Certificate of Secretary. Margin requires a $2,000 minimum balance.
6. Merrill Business Investor Account
Best for Bank of America customersWhy we picked it Merrill is a Bank of America company, and its Business Investor Account has no account fee and $0 online stock and ETF trades. Idle cash sweeps into deposit accounts at Bank of America unless you opt out.
- No account fee
- 401(k), SEP and SIMPLE plans too
- PDF you mail or fax
- U.S. businesses only
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Member SIPC, a Bank of America company. $0 applies to online stock and ETF trades; options contract and other fees may apply. Investment products are not FDIC insured, are not bank guaranteed and may lose value.
7. TradeStation entity account
Best $0 commissions with an online applicationWhy we picked it Stock and ETF commissions are $0, and you can apply online. It suits a business that trades often, because an inactive account pays $10 a month and every trade carries a small clearing fee.
- Online application, $0 commissions
- Takes partnerships and trusts
- $10 a month if inactive
- Clearing fee up to $0.003 a share
TradeStation Securities, Inc., member FINRA and SIPC. The clearing fee is $0.003 per share on up to 100,000 shares a month and falls as volume rises. The inactivity fee is waived with a $5,000 average month-end equity balance or at least 10 trades in the prior 90 days.
8. Webull entity account
Best for commission-free optionsWhy we picked it Webull charges no commission on U.S.-listed stocks, ETFs or options, and the entity account can be a cash or margin account. It is only for LLCs and corporations that can deposit $100,000 on day one.
- $0 on stocks, ETFs and options
- Online application
- $100,000 to open, $50,000 to keep
- LLCs and corporations only
Webull Financial LLC, member FINRA and SIPC. A $0.50 per contract fee applies to certain index options, and regulatory fees are passed through. Entity and individual accounts cannot share a login.
Who can open a business brokerage account, and what you need
Any legally formed business can own a brokerage account. Every broker on this page takes corporations and LLCs, and all but Webull take partnerships. Sole proprietors can open one at Fidelity, Schwab, Vanguard, E*TRADE, Merrill and TradeStation. Nonprofits have options too, including Fidelity and E*TRADE.
Have four things ready before you apply. You need the business’s tax ID, which is an EIN for most businesses. You need a formation document, such as articles of incorporation, articles of organization or a certificate of good standing. You need something that names who may trade for the business, such as a corporate resolution or an operating agreement. And you need ID and personal details for each person on the account and each major owner. Interactive Brokers and E*TRADE ask about anyone who owns 10% or more, and Fidelity asks about owners of 25% or more of an operating business.
If you are investing as yourself and not as a company, a personal account is simpler to open. Start with our list of the best online brokers.
MoreBest business bank accounts for an LLC
How a business brokerage account is taxed
The account is taxed the way the business that owns it is taxed. There is no special rate for holding investments in a company’s name.
| Type of business | Where the investment income is taxed |
|---|---|
| Sole proprietor or one-member LLC | On the owner’s personal return. The IRS treats a one-member LLC as part of its owner unless it elects otherwise. |
| Partnership or multi-member LLC | Passed through to the partners. An LLC with two or more members is taxed as a partnership by default. |
| S corporation | Passed through to shareholders, who report it on their personal returns at their individual rates. |
| C corporation | Taxed to the corporation when earned, then taxed again to shareholders when it is paid out as dividends. |
The pass-through rules come from the IRS pages on LLCs and S corporations. The C corporation rule comes from its page on forming a corporation, which also says shareholders cannot deduct a corporation’s losses. An LLC can change how it is taxed by filing Form 8832, so check which line applies to you before you move a large balance.
Business brokerage account vs. SEP IRA or solo 401(k)
A business brokerage account is a taxable account. The business puts in money it has already been taxed on, there is no cap on how much, and it can take the money out whenever it wants.
A SEP IRA and a solo 401(k) are retirement accounts for you, not for the company. The contributions get a tax break, the IRS limits how much goes in each year, and the money is meant to stay there until you retire. The IRS says a business of any size, even a one-person business, can set up a SEP, and only the employer contributes. A one-participant 401(k) covers a business owner with no employees, or the owner and a spouse.
Many owners use both. Fill the retirement plan first for the tax break, then use the brokerage account for money the business may want before you retire. Fidelity, Schwab, E*TRADE and Merrill all offer small business retirement plans next to their business accounts.
MoreWhy the self-employed plan for retirement differently
What to do with idle business cash
A brokerage account is for money the business will not need for years. Stocks and funds can fall right when payroll or a tax bill comes due.
Keep operating money in a business checking account. Put the reserve you might need this year in a business savings account at an FDIC-insured bank, where it earns interest and cannot lose value.
Uninvested cash inside the brokerage account is handled differently at each broker. Fidelity holds it in a money market fund you pick. Merrill sweeps it into deposit accounts at Bank of America unless you opt out. Interactive Brokers pays interest on it, up to 3.38% on U.S. dollars at this update, with the full rate going to accounts of $100,000 or more.
MoreBest short-term investments
Before you open a business brokerage account
Four things business owners ask first.
Investments are not bank deposits, so FDIC insurance does not apply to them. If a SIPC member broker fails, SIPC protects up to $500,000 in securities and cash, including a $250,000 limit for cash. It does not cover a drop in the value of what you own.
Brokers want proof the business is allowed to borrow. Interactive Brokers asks for a charter, bylaws or a resolution that authorizes margin, and E*TRADE and TradeStation require $2,000 in the account. You can lose more than you deposit.
Link a bank account in the business’s name. Fidelity requires you to own the bank account you link, and Merrill does not allow transfers from a business account to a personal one unless you are a sole proprietor.
Dividends, interest and gains are income of the business. A pass-through business reports them on its owners’ returns, and a C corporation pays the tax itself. The table above shows which one you are.
How we chose these
Which types of business each broker accepts, the minimum to open, stock and ETF commissions, account fees and how you apply.
Every figure was checked on the broker’s own business account page, application or fee schedule at this update.
Brokers that do not publish a business account, and brokers whose business account terms we could not confirm on their own sites.
Business brokerage account FAQs
Fidelity is our top pick for most small businesses. It lists no minimum and no annual account fee, online U.S. stock and ETF trades are $0, and it accepts corporations, LLCs, partnerships and sole proprietors. Interactive Brokers suits a business that trades often, and Charles Schwab fits one with $100,000 or more across its Schwab accounts.
Yes. Corporations, LLCs, partnerships and sole proprietors can all open one. The account is opened in the name of the business with its tax ID, and the application names the people who are allowed to trade.
Every broker on this page accepts LLCs. Have the LLC’s EIN, a state-filed formation document such as the articles of organization, and ID for each manager or member who will trade. Fidelity, Schwab, E*TRADE and Merrill use an application you download. Interactive Brokers, TradeStation and Webull take the application online.
The LLC needs its own account under its own tax ID. Webull, for example, makes you create a separate login for an entity account. Moving investments from your name to the LLC can have tax and legal effects, so ask a CPA before you do it.
Yes. It is called The Fidelity Account for Businesses. Fidelity lists no investment minimum and no annual account fee, and online U.S. stock and ETF trades are $0. You apply with a PDF application. Existing customers can upload it, and new customers mail it in.
No. Robinhood’s account guide covers individual, joint, retirement and trust accounts, and it does not list an account for an LLC or a corporation. Webull does open entity accounts for LLCs and corporations, with a $100,000 minimum deposit.
Yes. Both mean a taxable account that a business uses to buy stocks, ETFs, bonds and funds. Brokers use their own names for it: organization account at Schwab and Vanguard, entity account at TradeStation and Webull, and Business Investor Account at Merrill.
