As more and more everyday investors continue taking advantage of Groundfloor's real estate investment opportunities to diversify their portfolios, one of the most common requests we’ve heard from users is for the ability to invest through business banking accounts. In response to this feedback, in 2019 we launched the capability to invest on Groundfloor through business accounts such as corporations, LLCs, partnerships, and sole proprietorships.
Why Invest Through a Business Account?
Just as investing can help you grow your personal wealth, investing with your business account can help you put your business’ extra funds to work earning interest, rather than leaving them sitting in a business savings or checking account, many of which pay little to no interest. We have several business customers that use Groundfloor as a better treasury management solution, earning a much higher return than other options.
Investing through business accounts such as LLCs also allows investors to capitalize on the unique tax advantages that such accounts enjoy. Depending on your personal tax circumstances, you can elect to pass through your business’ earnings to be taxed personally, or continue to pay tax on an entity basis.
Finally, many investors have previously established self-directed IRAs through which they may wish to invest. These accounts are able to be set up as business accounts on the Groundfloor platform, enabling you to invest with your existing IRA instead of having to set up a new IRA account.
Setting Up A Business Account on Groundfloor
Setting up your business account on Groundfloor is quick and easy. After creating an account with your email address and password, you’ll be asked to choose whether you are investing as an individual or as a business.
When you create an account, select "business account."
After you select “Business,” you will be prompted to enter in some additional customer information, including your business employer identification number (EIN). This will be used to verify your business.
You will enter your business' EIN on the "Customer Information" screen.
To invest via a previously-established, personal self-directed IRA, you will follow the same steps outlined above to set up a business account, and enter the EIN associated with your existing IRA. Be sure to check with your source custodian to ensure that you have checkbook control over your self-directed IRA.
And that’s it! Once you complete the rest of the account set up, you will be able to invest in Groundfloor products with your business account.
Over eight years ago, we designed Groundfloor to be a simple-to-use tool to help everyone take advantage of the wealth-building power of real estate investments. We’re committed to continuing to evolve our platform in sophistication and functionality to support you as you work towards your financial goals. If you have any questions or comments about investing through a business account, feel free to comment below or reach out to our team at firstname.lastname@example.org. We always appreciate hearing from you.
Ready to get started investing through a business account? Click the button below to create your business account and begin investing today.