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Question: Can i open an investment account for my llc and purchase stocks/mutual funds ?

(Posted by: Sean S on 2009-12-11 08:00:10)

I currently own an LLC, I file the LLC as an S Corp, and was wondering if I can open an investment account under the LLC to build a portfolio of investments for the LLC itself.. any ideas? Ah, I'm sorry that was in error, I do not file as an S Corp... I file a CT- 4 for the IRS and split my personal income tax from the business income tax.

Posted by: the tax lady on 2009-12-11, 08:09:42

An S-corp is a disregarded entity. The stocks will still belong to you and you will ultimately report them the same way on your taxes. That is dividends to the dividen line and capital gains to the schedule D. Yes, the S-corp can buy stock, but to what end? Your s-corp doesn't really need a portfolio.

Posted by: Bobby on 2009-12-11, 12:05:43

Yes you can. This gives you asset protectioin benefits with no negative tax consequence. I always advise my clients to use an LLC for the purposes of their investment accounts.