How to open an organization brokerage account

How to open an organization brokerage account

An organization is a legal entity that has been authorized by a state government to conduct business in that state. You can open a domestic incorporated or non-incorporated organization account for organizations governed by U.S. jurisdictions.

To open an account for an organization governed by non-U.S. jurisdiction or that has a foreign taxpayer identification number, see How to open an international organization account.

To open a trust Tooltip account, see How to open a trust account or How to open an international trust account.

For domestic organizations, including a corporation, partnership, limited liability partnership, limited liability company, sole proprietorship, or unincorporated association, see the organization account table to determine which type of account to open.

You can open an organization brokerage account online using DocuSign® or paper forms.

Do not submit formation documents unless instructed to do so by Schwab. Submitting these documents may delay the account opening process. To open an organization brokerage account, you will need:

All accounts
In addition to the information above, the following may be required:
Additional features
Account opening method
  • If using DocuSign to submit forms:
    • For existing Schwab clients, a complete Schwab Advisor Center® profile with the account holder's current email address and mobile phone number
    • For new-to-Schwab clients, the email address and mobile phone number
    • All clients must use both text message (SMS) authentication and Knowledge Based Authentication (KBA) for DocuSign

This process may be used to open an organization brokerage account using DocuSign.

If submitting via DocuSign
  1. For details, see How to use DocuSign®.
  2. Use the following templates to complete the workflow:
    • Open Account – Incorporated Organization Account 
    • Open Account – Non-Incorporated Organization Account
  3. In addition to the forms, you are required to provide your clients a copy of the Cash Features Disclosures Statement document. 
If submitting via Service Request
  1. Print the form(s) not available for DocuSign, and obtain signatures from all account holders and the agent(s). 
  2. Send the signed form(s) to your Schwab service team via a Schwab Advisor Center service request.

This process may be used to open an organization brokerage account using paper forms.

  1. Go to Account Management on Schwab Advisor Center > Forms library and select the applicable form package below.
    1. Open Account — Incorporated Organization Account
    2. Open Account — Non-Incorporated Organization Account
  2. Complete all necessary fields, and ensure that all additional features the client requested have been added.
  3. In addition to the forms, you are required to provide your clients a copy of the Cash Features Disclosures Statement document.
  4. Print the form(s) and obtain signatures from all account holders or the responsible individual. Send the signed form(s) to your Schwab service team via a Schwab Advisor Center service request.

Once you have submitted your request:

  • If opening with DocuSign, see the What's next? section of How to use DocuSign.
  • Once received, Schwab processes forms in the same time frame, regardless of opening method, according to the Account opening process.
  • Schwab may contact you for additional documentation and/or information after completing an initial review.
  • Your firm receives an alert when the account has been opened as restricted. The restricted account can be funded; however, Schwab's recommendation is to wait until after the account has completed the customer verification process Tooltip so that funding is not tied up.
  • Schwab sends an alert once the account restriction has been lifted.
  • If you have questions about opening organization brokerage accounts, call your service team.

Go to the Forms library on Schwab Advisor Center and select the forms below.

Form: Checkwriting and Visa Debit Card Application for Organization Accounts
Form: Options Trading and Margin Application
Form: Prime Brokerage Amendment (Account Holder)
Form: Schwab One Account Application for Incorporated Organizations
Form: Schwab One Account Application for Non-Incorporated Organizations
Form: Transfer of Account Form Instructions (TOA / Account Transfer)
Resource: Cash Features Disclosures Statement
Resource: Account opening process

If multiple signers are assigned to a form, in what order do the signers receive and sign the form(s)?
The order the signers are notified of a document pending signature depends on the order in which you listed the signers on the envelope creation page. Signers will receive an email notification in sequential order after each signer has completed their signing.

If my client makes changes to a form when electronically signing, will I be notified of the changes? 
No. Once all signers have completed their electronic signatures, you will not be able to edit any of the information. However, if you have elected to review the forms prior to submitting to Schwab, you will have an opportunity to review the forms.

Will income be earned on any cash in the account that is not invested?
Yes. View the Cash Features Disclosures Statement for more information.

After the account has been opened, can changes be made to authorized individuals and the organization name?
Yes. See How to make changes to organization accounts.

Are margin and options offered on organization accounts?
Yes. Margin and options are offered on organization accounts, excluding those opened for charitable organizations. Charitable accounts are allowed only options level 0 Tooltip .

How can my client fund the account upon opening?

  • Check made payable to Charles Schwab & Co., Inc
  • Transfer from another financial institution (see the Transfer of Account form).
  • Electronic transfer using Schwab MoneyLink®

The recommendation is to wait until after the account has completed the customer verification process Tooltip so that funding is not tied up.

How to make changes to organization accounts
How to open an international organization account
How to use DocuSign®
Introduction to householding