What is a sole proprietorship account?
A type of business entitiy which is run by one individual, often under a trade name other than his/her legal name. A sole proprietorship account is opened under the individual's social security number.
I want to open a sole proprietorship brokerage account with your firm. At what point should I send in the completed account opening documentation?
You will first need to make contact with a broker here and discuss the details of your transaction. If our compliance department approves your transaction, you can then proceed to fax or email in the account opening documentation. If you will be depositing shares, you will first want to complete an Equity Deposit Questionnaire (EDQ) or the Quick Facts Questionnaire (QFQ). See Guidelines for Depositing OTC Securities.
What forms are required to open a sole proprietorship brokeage account.
Along with a non-expired government issued identification (i.e. passport and/or driver license), at a minimuim the following documentation must be submitted:
- New Account Approval Form (Pages 1*** & 2), Customer Account Agreement, Affidavit of Sole Ownership, Initial Privacy Notice, and Receipt of Documentation.
- If opening this account as a Margin account, then substitute the Customer Account, Margin & Short Account Agreement for the Customer Account Agreement,
- Foreign accounts will also need to submit an original W-8BEN, which must be mailed into our firm..
- Copy of DBA Filing (required when individual is operating under a trade name)
These forms can be found under New Accounts>Sole Proprietorship
***We are now requiring the signature line on page 2 of the New Account Approval Form to be notarized.
Do you need the original documentation?
You can fax us or scan into an email the required documentation. The only instance for which we require original documentation is in the case of the W-8BEN for a foreign individaul.
Do you open accounts for Canadian citizens?
If the individual is residing in Canada, then we are unable to open the account. If the individual is permanently residing in another non-banned country, then we would be able to open the account.
You may also be interested in: