stock answers llcCan a company (LLC) invest, buy stocks to its own name?

This question I guess is for someone with some securities regulation knowledge or practical experience in this.


Can a company (LLC for example) open a brokerage account to its own name (ABC LLC) and trade its own cash/funds to buy shares in any company on the stock market, as a cash management practice or even one of its main activities?


Are there any special regulatory procedures to be followed, like registration, license to do that, or any extra reporting than a regular person will do.


If I have to give a practical example case: ABC LLC does general trading and services, at some point ABC opens a brokerage account with ABC Brokers funds the account with company money, then buys stocks in that account. Are there any regulatory, permission, licensing authorization consequences? Need to file, report, get permissions licenses?


Any comments from peopstock answers llcle with some qualification in the field or practical experience will be very welcome and given best answer award.
Yes, it can. Most brokerage firms will let you open corporate accounts with some simple verification i.e. Articles of incorporation and corporate resolution.

There shouldn't be any type of restriction on what you can trade unless the corporation is publicly traded or is in the securities industry.

The only extra reporting you would have to do would be filing the taxes for the LLC
No problem, but need to shop for a good institution and do a lot of home work and get educated before hand.
Isn't that's what Warren Buffett had done originally? Lately he has been buying the entire companies, but still his company, Berkshire Hathaway, has holdings in these companies:

American Express Co. (12.1%), American Standard Companies, Ameriprise Financial, Inc., Anhestock answers llcuser-Busch Cos., Burlington Northern SantaFe Corporation (10.9%), The Coca-Cola Company (8.3%), Comcast, Comdisco, ConocoPhillips, Costco Wholesale, Diageo PLC, First Data Corporation, Gannett General Electric, The Home Depot, H&R Block Inc., Ingersoll Rand. Iron Mountain, Johnson & Johnson, Lexmark International, Lowes Companies, M&T Bank, Moody’s Corporation (16.2%), Mueller Industries, Nike, Outback Steakhouse, Petro China, Pier 1 Imports, Posco, Procter & Gamble Co., Sanofi-Aventis, Sealed Air, ServiceMaster, Shaw Communications, SunTrust Banks, Tesco, Tyco International, UnitedHealth Group, United Parcel Service, USG, U.S. Bancorp, Wal-Mart Stores Inc., The Washington Post Company (18.1%), Wells Fargo, Wesco Financial Corporation
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