Charles Schwab Business Account
If you run a small business and need to manage its assets, Charles Schwab offers several business brokerage accounts. Popular options include accounts for sole proprietorships and Limited Liability Companies (LLCs).
Opening the Sole Proprietorship Account
Running a sole proprietorship in the United States is straightforward, with minimal legal paperwork needed. You might consider obtaining a DBA (doing business as) if required locally.
To open a sole proprietorship account at Charles Schwab, simply visit the broker’s account opening page. You’ll need to provide your name and address. The process isn’t fully online, though.
Charles Schwab will email you the forms to fill out and return. You can also download these documents directly from the website or request them via postal mail.
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Opening the LLC Account
The process for opening an LLC account is similar to that for a sole proprietorship. Start by accessing the business/trust section on the account opening page and select the appropriate business type—LLC or sole proprietorship.
Like the sole proprietorship, the LLC account cannot be fully opened online. You’ll need to download, complete, and submit the necessary paperwork to Charles Schwab.
If you need help at any point, Charles Schwab provides customer service at 1-800-454-9272.
Differences Between LLCs and Sole Props
The key difference is liability. An LLC offers limited liability protection to its owners, unlike a sole proprietorship where the owner has unlimited personal liability. If there's a risk of being sued, an LLC might be the better choice.
While a sole proprietorship has only one owner, an LLC can have one or multiple owners, including individuals or other businesses. Although LLCs often have more income and employees, a sole proprietorship could also employ many workers as long as it has a single owner.
Benefits of Business Accounts at Charles Schwab
Both LLC and sole proprietorship accounts enjoy zero-commission trading, just like personal accounts at Charles Schwab. They can also access a wide range of investment options including stocks, funds, forex, futures, and options. Additionally, Charles Schwab offers excellent software tools for account management.
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Updated on 7/19/2024.
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