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TD Ameritrade Sole Proprietorship and Limited Liability Company (LLC) in 2020


Review of TD Ameritrade Limited Liability Company (LLC) and Sole Proprietorship accounts pros and cons, account fees, rating, minimum, investing options and commissions.



TD Ameritrade LLC and Sole Proprietorship


If you’re running a small business, you may want to open a brokerage account to manage whatever assets your company has. TD Ameritrade has several business accounts that can be opened. Two popular choices today are sole prop and LLC accounts.


Opening the Sole Proprietorship Account


If you’re running a sole prop in the United States, you don’t need any legal paperwork. The government is nice enough to let you operate your business with a minimum of red tape. In some situations, you may want to go down to your local county courthouse and get a DBA (doing business as) form.

To open the sole prop business account at TD Ameritrade, just head over to the broker’s account opening section. Here, you’ll need to input your name and address. Unfortunately, it’s not possible to go through the entire process online.

Instead, TD Ameritrade will email some forms to you that you’ll have to complete and send back to the broker. It’s also possible to receive these documents as a download straight from the website. A third option is to request that the broker send the forms through the U.S. postal service.


Opening the LLC Account


Limited Liability Companies get the same online form that sole props use. Be sure to select the right account, though. First, you’ll need to expand the business/trust section in the left-hand menu on the account opening page. Then, you’ll need to select the business type that you have. There is one entry for LLC, and one for sole prop.

As with the sole prop account, LLC accounts can’t be opened completely online. You’ll have to download the appropriate account documents, fill them out, and then submit them to the brokerage firm.

If you have any questions during this process, or need any assistance, TD Ameritrade posts a customer service number on its account application page. It’s 1-800-454-9272.


Differences Between LLCs and Sole Props


The primary difference between a sole proprietorship and a Limited Liability Company lies in the first two words of the second option: limited liability. An LLC creates limited liability for the owners; while sole prop owners have unlimited legal liability. If you have any concerns about ever being sued, you should definitely open an LLC.

Although a sole prop is a single owner by definition, an LLC could be owned by one person or several. Businesses or individuals could be owners. Although LLCs typically realize more income and have more employees than sole props, it doesn’t have to be that way. A sole prop could have a million employees as long as there was just one owner.





Benefits of Business Accounts at TD Ameritrade


LLC and sole prop accounts have the same great zero-commission schedule that personal accounts get at TD Ameritrade. And even better, they’re able to trade the same large assortment of investment vehicles, including not only stocks and funds, but also futures, forex, and options. TD Ameritrade’s suite of excellent software tools is also included.


Better Priced Sole Prop Account


TD Ameritrade has $0 commission on stocks and ETF's but charges $49.99 on the majority of mutual funds including the most popular funds. These are the products many investors want to see in their investment account. On the other hand, a brokerage firm called Ally Invest offers $9.95 commission on all mutual funds, and $0 on stocks and other investment classes. There are no account fees whatsoever. Learn more...


Ally Invest Promotion


Up to $3,500 cash bonus + $0 commission trades.

Open Ally Invest Account



TD Ameritrade Promotion


$0 commissions + transfer fee reimbursement.

Open TD Ameritrade Account