can a LLC own a mutual fund

[lgame]

i heard a LLC can own a marginal stock account which looks good for an asset, but can it own a mutual fund?

[jeremylorino]

An LLC can open a corporate brokerage account and have the same buying abilities as a real individual.

[GuyBBY]

An LLC can open a corporate brokerage account and have the same buying abilities as a real individual.

Correct, an LLC is its own entity, it is a "person" if you will.

In order to buy stock or mutual funds or other assets, through an LLC however, this action has to be authorized and defined as permissable in the Operations Agreement. If it isn't, you must amend your Operations Agreement to allow this type of investing to take place, which is if nothing else, just good practice to cover all your bases in operating your business. Think of it as an official check list or what you can and cannot do. Depending on how you have the structure/shares/voting power set up, you may need to have a vote or call a meeting to have everyone agree on amending.

Guy

[lgame]

is it a good idea to do?does look good as an assest when applying for a loan?

[GuyBBY]

It can be, as you grow and have cash flow to invest. However, think interms of more "bang for your buck". If you put $1000 in a mutual fund and get 10-15% ROI, you will have $1100-1150 at the end of the year. If you spent $1000 in marketing or other business development tactics, could you return $5000 in sales?

Banks would probably like to see higher sales and a working business model rather than a business with no sales but a pincipal or member who took $1000 and just put it into a fund.

Guy