How to Buy Stocks on Behalf of an LLC

By Lyle Daly – Updated Jan 31, 2025 at 3:08PM

Key Points

LLCs can buy stocks like individuals after forming and registering with the state.
To buy stocks, an LLC must open and fund a brokerage account under its name.
An LLC’s operating agreement should specify who can buy stocks on its behalf.
Investor Alert: Our 10 best stocks to buy right now ›

Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

A limited liability company (LLC) is a popular type of business structure that provides the simplicity of a sole proprietorship or partnership but without the legal exposure. When a business is incorporated as an LLC, the owners' or partners' personal assets are generally protected from litigation or from being used to repay the company's debts.

Clipboard with paper and glasses and the words Limited Liability Company, LLC.

Image source: Getty Images.

LLCs may decide to buy stocks for several reasons. Here are the steps to do so.

LLCs can buy stocks

An LLC can buy stocks just like individuals

Naturally, the first step to buying stocks on behalf of an LLC is to form the company. Once organized under state law, an LLC can do many of the same things individuals do, which includes buying stock.

LLCs are registered by the states -- usually by filing LLC articles of organization through a secretary of state's office. This is typically a short form and will establish information such as:

The name of your LLC
The LLC's business address
Names and addresses of the LLC's organizers, managers, and designated agent
The effective date of formation and the term for which the company will operate (if applicable)

You'll need to submit this form along with a filing fee and wait until the application is processed. It's also a good idea to obtain an employer identification number (EIN), which is a tax ID number specific to your LLC, from the IRS. You can do this on the IRS website -- it's fast and free.

Once you've established your LLC

An LLC's operating agreement can give just one of the owners/managers the authority to purchase stock on behalf of the company, or it could give this power to several or even all the parties involved. Whichever is the case with yours, it's a good idea to clearly express this authority in the operating agreement.

Related investing topics

Is Common Stock an Asset or a Liability?

Assets or liabilities? We explain accounting for common stock.

Top Stocks to Buy and Hold in 2025

Get a list of the best companies to buy and hold for the long haul.

Best Master Limited Partnership Stocks to Buy in 2025

MLPs capitalize on the tax advantages of investing in a limited partnership with the liquidity of a publicly traded company.

20 High-Yield Dividend Stocks to Buy in 2025

These stocks pay a dividend yield higher than a benchmark like the S&P 500. Here are the 20 best to consider investing in.

Next, you'll want to open a brokerage account in the name of your LLC. Most major brokerages offer this option. For example, Fidelity offers business accounts for various business structures, including LLCs, as shown in this screenshot from its business account application form.

Image source: Fidelity.

Once you've opened and funded your investment account, you can buy stocks just as you would through your personal brokerage account. Of course, thoroughly research all stocks and ensure they fit your LLC's objectives and risk tolerance before you buy.