Business accounts

Businesses can open brokerage accounts at financial firms. We’ll discuss two general business accounts in this chapter:

• Partnership accounts
• Corporate accounts

Partnership accounts

In a previous chapter, we learned about a limited partnership. This type of business maintains at least one general partner (who manages the organization) and one limited partner (who invests in the organization). General partnerships also exist, but only contain two or more general partners (no limited partners).

To open an account for either type of partnership, a partnership agreement must be submitted along with an account application. The partnership agreement includes the business name, partners’ information, and the roles and responsibilities of the partners. The partnership agreement for a general partnership includes information on all general partners, while the partnership agreement for a limited partnership includes information on all general and limited partners. Partnership accounts are business accounts and are not considered a type of joint account.

Corporate accounts

Corporations (S and C-corporations) are businesses that maintain stockholders as their owners. To open a corporate account, a corporate charter with a corporate seal and corporate resolution must be submitted. The corporate charter confirms the corporation’s legal status, while the corporate resolution names the corporation’s employees that may act on behalf of the entire corporation.