On Monday I wrote about my investing dreams and the first steps, and on Tuesday I discussed our method for choosing a online trader. Both of these were pretty easy, and the next step was basically a repeat of one of the previous.
Signing up for Scottrade was a lot like signing up for that online business savings account once I realized what I was supposed to be doing. It was the realizing-what-I-was-doing that took a bit.
When David made up his mind about which we'd go with, I immediately set up a Scottrade account, and almost immediately found out that that was wrong.
Lesson of the day: don't sign up for a personal account if your business is an LLC. There's a whole other account type and process for that.
You don't want to use a personal account for tax reasons. For several tax reasons, and as I'm hardly a professional, I won't even try to explain. Just don't do it.
Luckily I figured this out quickly, so I hadn't transferred in money or done anything dumb. I called my local Scottrade branch and talked with a real, live North Carolinian about opening up an account for business investing. I had forms to fill out (and in a very specific way, so ask questions!) and proof to send in. Unlike that savings account, scanning and emailing them in wasn't an option. Only fax and snail mail, and as I don't have a fax machine in the studio, I got to support the postal service, and this meant I had to wait.
Multiple calls to the branch prior to sending my packet of information enabled me to send everything correctly in one whack. Huge time-saver.
Several days later, I called to confirm they had received my info and I was given my account number and temp password to my official business account (which I did receive in the mail a few days later). I was so excited, feeling all professional and grown up, but also jumping up and down like a child.
I signed in, and... roadblock. I couldn't transfer funds straight from my bank account; one of those great IRS perks of being a business owner. I had to support the postal service yet again by sending in a check. So, I wrote a check and sent it in.
I checked back everyday until my funds were in the account, and then - finally - I was ready to start trading.
I am writing this Small Business Investing journey series for those of you who are as clueless about this process as I was. Also, I really wish I had had someone spell out the process and the speed bumps to me.
Check back next week for info on how I chose my stocks.
Are you investment-savvy or just dipping your toes? I'd love to hear from you!