You're running a business, and the cash is just sitting there. It’s annoying. You know that money in a standard business checking account is basically melting away thanks to inflation, but the jump to a full-blown corporate investment strategy feels like a massive headache. Honestly, most small business owners I talk to think a fidelity business brokerage account is only for massive corporations with CFOs and dedicated legal teams. That's just wrong.
The reality is a bit more nuanced.
Fidelity offers a specific product called the Fidelity Account for Business. It’s designed for entities—LLCs, corporations, even partnerships—that need to do more with their capital than let it collect dust. We aren't talking about a personal IRA here. This is a separate legal beast. It’s about giving your business the same "investment muscles" that you have in your personal life, but with the tax reporting and legal protections required for a commercial entity.
Why you actually need a business-specific account
Most people try to "hack" this. They use a personal account and just keep "good records." Don't do that. It’s a nightmare for piercing the corporate veil, and your CPA will probably fire you come April. A dedicated fidelity business brokerage account keeps the walls up between you and the company.
One thing that surprises people is the sheer lack of fees. Seriously. In an industry where "business" usually means "we’re going to charge you for breathing," Fidelity has kept the barrier to entry remarkably low. There are no account minimums to open one. There are no maintenance fees.
But here is the catch: the paperwork is a slog.
Unlike opening a personal account where you just click three buttons and provide a Social Security number, the business version requires the "heavy stuff." You’re going to need your Employer Identification Number (EIN), your Articles of Organization, and potentially a Certificate of Incumbency. If you’ve got multiple owners, everyone with significant control needs to be documented. It’s a hurdle, but it’s a one-time hurdle.
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The "Cash Management" Secret
Let’s talk about the idle cash problem. If you have $50,000 sitting in a big-brand bank's business checking, you're lucky to get 0.01% interest. It’s insulting.
With the fidelity business brokerage account, you get access to their money market funds. Right now, depending on the specific fund like SPAXX (Fidelity Government Money Market Fund), you might be looking at yields that actually compete with high-yield savings. This is huge for businesses that need to keep a lot of liquidity for payroll or quarterly tax payments but don't want to lose purchasing power in the meantime.
You can trade stocks, ETFs, and bonds. You can even get into mutual funds. It basically turns your business capital into a working asset.
It's not just for "investing"
Think bigger. Some businesses use these accounts as a secondary layer of protection. If your primary bank has a technical glitch—or worse, a liquidity crisis—having your backup capital in a brokerage account provides a safety net.
The integration is also surprisingly smooth. If you already use Fidelity for your personal 401(k) or your own brokerage, you can see the business account in the same dashboard. One login. Total visibility. It’s a small detail, but for a busy founder, it’s a godsend.
The complexity most people ignore
Is it perfect? No.
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There’s a common misconception that you can just treat this like a checking account. While you can get a debit card and check-writing privileges on some of these accounts, it’s not a replacement for a functional business bank account. You aren't going to be depositing bags of cash at a Fidelity branch.
Also, the tax reporting is different. You'll receive a 1099-B and 1099-DIV for the business entity, not you personally. This means your bookkeeping needs to be tight. If you’re a solo-proprietor using an EIN, it’s simpler, but for an S-Corp, you need to make sure your distributions are handled correctly so you aren't accidentally triggering weird tax events.
Breaking down the investment options
What can you actually buy? Pretty much everything.
- Stocks and ETFs: Most trades are $0 commission, which is standard now but still nice for a business account.
- Fixed Income: This is where the real pros play. You can buy Treasuries directly. If you know you have a huge tax bill due in six months, you could buy a 6-month Treasury bill. It’s safe, and the yield is predictable.
- Money Market Funds: As mentioned, this is the "default" for many. It’s liquid. It’s easy.
Dealing with the "Trust" aspect
If your business is held in a Trust, the fidelity business brokerage account handles that too, though the paperwork gets even weirder. You’ll need the full Trust Agreement. Fidelity is one of the few places that doesn't charge a "premium" just because your ownership structure is complex. They have a dedicated team for "Entity Accounts" that actually understands what a "Memorandum of Trust" is.
A quick reality check on margins
Let’s be honest. If your business is operating on razor-thin margins and you're living month-to-month, this account isn't your priority. You need a better sales funnel, not a brokerage account. But if you have "lazy capital"—money that’s just sitting there because you're saving for a future expansion or a slow season—then you are literally losing money by not having a setup like this.
I've seen businesses with $200,000 in cash just sitting in a 0% interest account for three years. That’s thousands of dollars in missed earnings. That could have been a new hire, a marketing campaign, or a better health plan for the team.
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Setting up your Fidelity account: The process
Don't expect this to happen in ten minutes.
- Gather the docs: You need your EIN, your formation documents, and IDs for all "Authorized Individuals."
- The Application: You’ll likely start this online, but don't be surprised if they ask you to upload PDFs or even (rarely) mail something in if your business structure is particularly "creative."
- Funding: You can link your existing business checking. It usually takes 1-3 days for the link to verify.
- The Core Position: Choose where your uninvested cash goes. This is the most important step for the "lazy" investor. Pick a high-yielding money market fund as your core position so every dollar starts working immediately.
What about the "Solo 401(k)"?
People often confuse the fidelity business brokerage account with a Solo 401(k) or a SEP IRA. They are different. A brokerage account is "after-tax" money. There’s no limit to how much you can put in, but there’s also no immediate tax deduction for the contribution. It’s just the business’s money.
A SEP IRA or Solo 401(k) is a retirement vehicle. If your goal is to reduce your personal taxable income, you want the retirement products. If your goal is to manage the company's operational cash and build a "war chest," you want the business brokerage account.
Common pitfalls to avoid
Don't trade like a "WallStreetBets" degenerate with your company's payroll. It sounds obvious, but the temptation is real when you see that "Trade" button. This account should be for preservation and modest growth, not for "betting it all on red."
Also, watch out for the "authorized user" trap. If you give an employee access to the account, they might have more power than you intended. Fidelity has different levels of "Inquiry" vs. "Trading" access. Use them.
The Final Word on Efficiency
The fidelity business brokerage account is basically a tool for professionalizing your finances. It moves you away from the "checking account and a shoebox of receipts" phase of business and into the "capital management" phase. It's about being efficient with every single dollar your hard work has generated.
You’ve already done the hard part of making the money. Now, you just need to make sure the money doesn't just sit there getting bored.
Actionable Next Steps
- Audit your current "lazy cash": Look at your business bank statements from the last six months. What was the lowest balance you ever hit? Everything above that amount is "excess" that could be earning more in a brokerage money market.
- Check your formation docs: Ensure your "Articles of Organization" or "Bylaws" are handy. If you can't find them, you can't open the account.
- Evaluate your "Core Position": If you already have an account, check if your cash is sitting in a 0% "Interest Bearing" option or a ~5% Money Market fund. The difference is massive over a year.
- Consult your tax pro: Briefly ask your CPA how they want you to categorize "Investment Income" from the business account in your books (e.g., QuickBooks or Xero). It usually goes under "Other Income," but they’ll appreciate you asking before you do it.