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TD Ameritrade Partnership & Limited Partnership Accounts (2020)

Review of TD Ameritrade Limited Partnership and Partnership accounts pros and cons, account fees, rating, minimum, investing options and commissions.

Opening Partnership and Limited Partnership Accounts at TD Ameritrade

If you’re looking to open a brokerage account for your general partnership or limited partnership, TD Ameritrade has options for you. Even better, the accounts come with the same investment vehicles and fee schedule that other account types have.

General Partnership vs Limited Partnership

General partnerships are business arrangements that divide assets equally among all partners (unless specified otherwise). The partners have unlimited legal liability, which obviously carries a significant risk. In limited partnerships, on the other hand, the limited partners have limited liability (as the name suggests). But limited partnerships must have at least one general partner to manage the day-to-day operations of the business.

The Limited Partnership Account at TD Ameritrade

TD Ameritrade’s limited partnership account is for two or more business owners. The starting point to open the account is on the broker’s website. However, the application can’t be completed online. Instead, the brokerage firm will supply the opening documents as a download. Alternatively, TD Ameritrade will email or snail mail the required forms. In either case, you have to supply your name and address.

If you need any help filling out the form, or if you have any questions during the application process, TD Ameritrade supplies a phone number on the application page. It’s (800) 454-9272.

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The Partnership Account at TD Ameritrade

To open the partnership account, just follow the same link above. Be sure to select partnership among the available choices, and not limited partnership. As with the latter account type, the former account cannot be opened online. You’ll have to download the documents or request the broker email or snail mail them to you.

On the account application page, TD Ameritrade displays the same phone number for assistance if you need it.

Benefits of Partnership Accounts at TD Ameritrade

Neither the partnership nor the limited partnership account at TD Ameritrade has any fees. There are no annual, low-balance, inactivity, or maintenance charges. There’s also no charge to close an account.

The same great $0 commission schedule for regular accounts applies to business accounts. This means trades of stocks and ETFs cost nothing (other than regulatory and exchange fees on the sell side). Option trades have no base charges, but do come with a 65¢ per-contract fee. Some mutual funds have transaction fees. Forex and futures can be traded, although they’re not commission-free.

Some of the industry’s best software will be found at TD Ameritrade. Thinkorswim is the broker’s flagship desktop program, and it’s completely free to use. The company’s website itself is quite good. And there are three mobile apps available. Take your pick.

Taxation of Partnership and Limited Partnership Accounts

Both the partnership account and the limited partnership account have the same tax treatment. The IRS considers them to be pass-through entities, which means income flows through the account to the partners and is reported on their personal income tax returns.

This flow-through tax structure is different than a C-corporation. A C-corp is considered a legal person that pays taxes on its profits before they are distributed to shareholders.

Brokerage Account Review

To learn in detail about all the great features and pricing TD Ameritrade brokerage offers on Partnership & Limited Partnership accounts, visit TD Ameritrade Brokerage Review »

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