Investing your company’s spare cash could have significant benefits, including:
- Earn interest: Getting returns on your uninvested cash balances, which are often higher than those offered by national banks;
- Diversity: If you prefer not to invest in your business, then investing in the stock market could be a way to diversify your holdings;
- Postpone taxes: Many businesses pay high taxes when taking money out. This way, you can still reinvest inside the corporation.
If you’re a business owner using Robinhood for personal investments, you might wonder if you can open a business account with Robinhood.
Can you open a Robinhood business account?
The short answer is no, Robinhood currently does not offer business, LLC, or corporate accounts.
Robinhood is tailored specifically for individual investors.
According to multiple user discussions and official support, Robinhood does not support accounts for businesses, including LLCs and corporations.
This restriction is due to their focus on simplifying investment for individual retail investors and regulatory considerations related to business accounts.
We have personally checked Robinhood’s Investor reports and there was no mention of any plans to open corporate accounts in the near future.
Below, we explore alternative platforms for business investments.
Alternatives for business accounts
- Interactive Brokers: Our choice. No minimum deposit, low commissions, and a wide range of financial products.
- Webull: Provides accounts for legally established LLCs with a minimum of $100,000. Best for simplicity.
- Vanguard: It is more geared towards long-term investing (buy-and-hold) and not short-term traders.
- Charles Schwab: One of the largest US discount brokers and offers commission-free trades on stocks, ETFs, and other products. Business accounts require a minimum amount of $250,000.
Comparison
In this comparison, we’ve covered the leading US brokers offering corporate accounts. Still, there are others that also allow you to open your LLC account.
We have also created a business brokerage account and our choice was Interactive Brokers.
Opening a business account at IBKR
Creating a business account at Interactive Brokers is a straightforward process.
Before diving into the account creation process, it’s essential to conduct thorough research on Interactive Brokers‘ offerings for corporate accounts. Understand their fee structure, available investment options, and any specific requirements or restrictions that may apply. Feel free to explore the alternatives mentioned in this article and decide for yourself!
If you want to know more, in this step-by-step guide, we explain how to create a business account at Interactive Brokers.
Bottom line
While Robinhood is one of the biggest brokers for individual investors, it currently does not support business, LLC, or corporate accounts.
It’s essential to choose a platform that aligns with your business’s investment goals and offers the required regulatory compliance and customer support.
Explore the alternatives mentioned in this article, and feel free to reach out to us if you have any feedback and question – we’re happy to help!
