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Can a business invest in stocks?GLEIF’s verifiable LEI issuer qualification programWhat are Child Entities and How do They Relate to Other Entities?Do I need an LEI when selling shares?Business Transparency: How to Create an Environment of TrustAnti Money Laundering (AML) in Banking: Everything You Need to KnowCorporate Structures Demystified: What You Need to KnowKYC in Banking: Why It’s Important and How to ComplyWhat is a parent company and how does it work?How long does it take to get an LEI?ISO 5009 – Identifying organizational rolesISO 17442 – Standard for LEI code structureESRB discusses the future of LEIGlobal Business Identifier (GBI) – Trade Transformation InitiativeWhat documents are required when registering LEI?How to get an LEI?Who is an LOU in the LEI Dimension?GMEI Utility vs LEI RegisterLapsed LEI – Why should you keep your LEI active?Who is an LEI Registration Agent?Are LEIs public?What is LEI transfer?Can an individual have an LEI?Do LEI numbers need to be renewed?Why is an LEI number required?How much does an LEI number cost?LEI Lookup – Fully dedicated LEI search websiteISIN to LEI mappingGLEIS | Global LEI SystemMiFID regulation | MiFID II LEIvLEIGLEIF | Global Legal Entity Identifier FoundationCompany Autocomplete by LEI RegisterOpen LEIEuropean Market Infrastructure Regulation | EMIRWhat is an LEI database?LEI Application – Apply For An LEI OnlineLEI Checker – Search Your LEI OnlineWho Needs An LEI Number?LEI for TrustsLegal Entity Identifiers in CryptocurrencyLegal Entity Identifiers in KYCDigital Identity Predictions for 2020The Future of Cybersecurity – DeloitteLegal Entity Identifiers in Digital CertificatesBroad Adoption of LEIs Could Save The Global Banking Sector US $2-4 BillionLegal Entity Identifiers for Government EntitiesThe European Market Infrastructure Regulation (EMIR) and Legal Entity Identifiers (LEIs)The FCA Will Take Pragmatic Approach to Supervising Reporting on Brexit DayAdoption of LEI in Payment Messages by the Payments Market Practice Group (PMPG)RegTech London – Event SummaryWhat is LEI-Search?LEI Register and RapidLEI Announce Official Partnership

Can a business invest in stocks?

stock investing as a business

Yes, a business can invest in stocks to diversify its investments and generate a financial return. There are a few different ways a company can invest in stocks, depending on the business’s legal structure and the investment’s goals.

A corporation can invest in stocks through a brokerage account the same way an individual would. The corporation can also invest in stocks by purchasing shares of stock in other companies, either through a public offering or privately.

If the business is a partnership or sole proprietorship, the business owners can invest in stocks through a personal brokerage account or by purchasing shares of stock directly.

Can I start an LLC that invests in stocks?

You can start an LLC (limited liability company) that invests in stocks. An LLC is a type of business structure that offers the liability protection of a corporation with the tax benefits of a partnership.

To start an LLC that invests in stocks, you’ll need to follow the steps for creating any LLC, which typically include the following:

  • Choose a name for your LLC and ensure it is available.
  • File articles of organization with your state’s LLC filing office. This document outlines the basic information about your LLC, such as the name, purpose, and members (owners).
  • Create an operating agreement, which is a document that outlines how you will run the LLC and how who will make decisions.
  • Obtain any necessary licenses or permits to operate your business. 

Once you’ve set up your LLC, you can invest in stocks through a brokerage account or by purchasing shares of stock directly

Stock investing as a business

There are a few steps that a business can follow to invest in stocks as a way to diversify its portfolio:

  • Determine the financial goals of the investment: It’s essential to have a clear understanding of the reasons for investing in stocks and the financial goals you hope to achieve. This will help you make informed investment decisions and choose stocks aligned with your goals. 
  • Research and evaluate potential stocks: There are many different stocks to choose from, and it’s important to carefully research and consider each option’s potential risks and rewards. This may involve looking at financial statements, analyzing the company and its industry’s performance, and evaluating the overall economic environment. 
  • Create a diversified portfolio: Diversification is an essential aspect of risk management, and it’s important to include a variety of stocks in your portfolio to spread risk. This may involve investing in stocks in different industries, sectors, or countries, as well as stocks with varying levels of risk and potential return. 
  • Monitor and review your investments regularly: It’s important to periodically check your assets and make changes as necessary based on changes in the market or the financial performance of the companies. This may involve rebalancing your portfolio to maintain the desired level of diversification or selling stocks that no longer align with your financial goals.

It’s important to remember that investing in stocks carries some level of risk, and it’s important to carefully consider your financial goals and risk tolerance before making any investment decisions. It is also helpful to consult with a financial advisor or professional for guidance on investing in stocks as part of a business portfolio.

Benefits of buying stocks through an LLC

There are several potential benefits to buying stocks through a limited liability company (LLC):

  1. Limited liability: One of the primary benefits of an LLC is that it offers its owners limited liability protection. This means that the personal assets of the LLC’s owners (called “members”) are generally not at risk if the LLC incurs debt or is sued. This can be particularly attractive for individuals concerned about protecting their assets. 
  2. Tax advantages: LLCs may be taxed as a sole proprietorship, partnership, or corporation, depending on the number of members and how they choose to be taxed. This flexibility can allow LLCs to take advantage of the most favorable tax treatment. 
  3. Ease of formation: LLCs are relatively easy to set up and operate compared to other business structures such as corporations. In many states, you can form an LLC online in just a few steps. 
  4. Potential for profit sharing: LLCs can allow for profit sharing among members, which can be a way to motivate and reward team members.

It’s worth noting that buying stocks through an LLC may also involve additional costs and responsibilities, such as filing annual reports and paying fees to the state where the LLC is formed. It’s important to carefully consider the potential benefits and drawbacks of buying stocks through an LLC and seek the advice of a qualified attorney or financial advisor before making a decision.

Can I use LLC money to invest in stocks?

An LLC can use its funds to invest in stocks. Like other types of businesses, LLCs may have excess cash that they can use to invest in various assets, including stocks.

However, it’s important to remember that LLCs are subject to specific legal and tax considerations when investing. For example, an LLC may be required to pay taxes on any investment profits. The tax treatment of investment income may vary depending on the type of investment and the LLC’s tax classification.

It’s also worth noting that LLCs are subject to the same risks as other investors when investing in stocks. The value of stock investments can fluctuate, and there is no guarantee of a return on investment. As with any investment, it’s crucial for LLCs to carefully consider their investment objectives, risk tolerance, and financial situation before making any investment decisions. It’s a good idea to consult with a financial advisor or attorney before making any investment decisions.

Can a sole proprietor invest in stocks?

Yes, a sole proprietor can invest in stocks. A sole proprietorship is a business structure in which an individual operates a business as an individual rather than a corporation or other entity. As the owner of a sole proprietorship, you have complete control over the company and its assets, including any profits or losses. This means you are free to use the profits from your business to invest in stocks or other types of investments.

Can a C corporation invest in stocks?

Yes, a C corporation can invest in stocks. A C corporation, also known as a regular corporation, is a type of business structure legally separate from its owners and is taxed as a separate entity. A C corporation can own assets and make investments, including stocks, as a separate entity.

However, it’s important to remember that C corporations are subject to specific legal and tax considerations when investing. For example, a C corporation may be required to pay taxes on any profits generated from investments, and the tax treatment of investment income may vary depending on the type of investment.

An LEI is needed when investing in stocks as a business

A Legal Entity Identifier (LEI) is a unique, 20-character code used to identify legally distinct entities that engage in financial transactions. It is required when a business, such as a corporation or limited liability company, invests in stocks or other financial instruments.

The LEI code provides a universal identification of the entity’s ownership structure and helps to answer the questions “who is who” and “who owns whom.”

The Global Legal Entity Identifier Foundation (GLEIF) is a not-for-profit organization established by the Financial Stability Board (FSB) to oversee the use of LEI codes. The GLEIF does not issue LEI codes directly but relies on a network of public and private companies known as Local Operating Units (LOUs). You will need to contact an LEI Registration Agent to obtain an LEI code.





GLEIF’s verifiable LEI issuer qualification program

GLEIF (the Global Legal Entity Identifier Foundation) has launched its new Verifiable LEI Issuer Qualification Program. This program is designed to help businesses everywhere establish trust with their partners and customers through the use of LEIs (Legal Entity Identifiers). The Verifiable LEI (vLEI) will play a critical role in this process by allowing businesses to automatically verify the identity of their partners and customers. Continue reading...

What are Child Entities and How do They Relate to Other Entities?

A child entity is a type of entity that is defined in relation to another, specific entity called the parent. Child entities can be thought of as subordinates or dependents of their parents. In some cases, child entities may have their own independent existence, but they cannot exist without their parents. In other cases, child entities are simply a subset of data that is stored alongside the parent entity. This blog post will discuss the different types of relationships between entities and explain how child entities work within those relationships. Continue reading...

Do I need an LEI when selling shares?

LEI code Investing

A Legal Entity Identifier (LEI) is a unique code required by any legal entity that invests in financial instruments through a regulated exchange (this includes shares, bonds, collective investment schemes, derivatives, and more). When the legal entity executes a transaction, this identifier is used to identify it. Continue reading...

Business Transparency: How to Create an Environment of Trust

What is transparency in business? Quite simply, you can define transparency as the act of being open and honest with all stakeholders - employees, customers, suppliers, and the community at large. In this article, we will explore what transparency means for business leaders and how they can create an environment of trust within their organizations. Continue reading...

Anti Money Laundering (AML) in Banking: Everything You Need to Know

Money laundering is the process of disguising the origins of money that has been obtained illegally. Anti Money Laundering (AML) regulations are put in place to prevent banks and other financial institutions from being used to launder money. In this article, we will discuss AML in banking and how it affects financial institutions. We will also provide a detailed overview of the AML process and discuss some common AML compliance issues. Continue reading...

What is a parent company and how does it work?

A parent company is a company that owns another company. Parent companies can be in charge of the day-to-day operations of their subsidiaries, or they can simply provide financial and managerial support. In most cases, parent companies are larger than their subsidiaries and have a more significant role in the overall operation of the business. Continue reading...

How long does it take to get an LEI?

The Legal Entity Identifier (LEI) registration process is simple but the data validation time is dependent on many variables. Once your LEI application has been submitted, your chosen LEI service provider will need to verify the information for quality control purposes. For this, a local company's registry is used.  Continue reading...

ISO 5009 – Identifying organizational roles

In 2022 the organization came out with a new standard ISO 5009: to recognize official organizational roles in a business entity with digital IDs, which can be used to authenticate the identity of authorized representatives for meeting the KYC and related regulatory requirements of business transactions. Continue reading...

ISO 17442 – Standard for LEI code structure

The International Organization for Standardization (ISO) is a global, independent, non-governmental standard development organization, composed of representatives from the national standards organizations of member countries. These standards are formulas for doing something- they can be about making products, managing processes, or delivering services -covering a huge range of activities. Continue reading...

ESRB discusses the future of LEI

The European Systemic Risk Board (ESRB) published an occasional paper to talk about the importance of the Legal Entity Identifier (LEI). The ESRBs role in the European Union (EU) is to avert and mitigate risks within the financial system. The paper views the opportunities presented by LEI to enable faster, cheaper, and more secure transactions not just within financial markets but for all legal entities globally. Continue reading...

Global Business Identifier (GBI) – Trade Transformation Initiative

The Border Interagency Executive Council (BIEC) has developed a new Evaluative Proof of Concept (EPoC), which will test three different entity identifiers and determine which combination is most optimal for uniquely identifying: main legal entities, ownership roles in specific businesses across global locations supply chain functions. The GBI EPoC aims to operate within the Automated Commercial Environment with plans on launching in spring 2022! Continue reading...

What documents are required when registering LEI?

The required documentation when obtaining an LEI varies depending on the entity's country of origin. In order to ensure high-quality data in the LEI database, a Local Operating Unit (LOU) will validate the information provided against the entity's local business registry. Continue reading...

How to get an LEI?

Registering a Legal Entity Identifier (LEI) is a simple process. It comes down to picking out a suitable service provider and filling out an application form. From there the service provider will validate the data you provided and get back to you with an LEI number/code. Continue reading...

Who is an LOU in the LEI Dimension?

A Local Operating Unit (LOU) is an authorized organization that issues LEI codes. You'll find a list of official LOUs (or LEI Issuers) on the GLEIF website. LOU-s supply registration, renewal, and other services related to the LEI code. Continue reading...

GMEI Utility vs LEI Register

The Global LEI System is designed to encourage competition between LEI issuers and registrators for the benefit of legal entities seeking to obtain an LEI. Coming up with the price of issuing and maintaining an LEI has therefore been left to the organizations themselves. This explains why some companies charge double the price of their competitors.  Continue reading...

Lapsed LEI – Why should you keep your LEI active?

Your Legal Entity Identifier (LEI) must be renewed annually. Failure to renew the LEI will change it from an ACTIVE status into a LAPSED status in the Global LEI System index. A lapsed LEI can cause major inconveniences, as your trades will be blocked and you might even face a risk of non-compliance fines. Continue reading...

Who is an LEI Registration Agent?

An LEI Registration Agent's role is to help legal entities, who are looking to obtain an LEI code. The concept of Registration Agents was introduced by GLEIF to further streamline the issuance of LEIs. A Registration Agent's success is solely determined by their ability to offer competitive prices and by simplifying the LEI registration or renewal process for their clients. Continue reading...

Are LEIs public?

The Global LEI System was developed for a more transparent global financial market. A company's LEI will be public and contain data about the company's registered and trading names; company type; registered address; registration number; parent company information; child company information. You'll be able to access this public database, free of charge through LEI Search.  Continue reading...

What is LEI transfer?

LEI transfer is the process of transferring your LEI code from one service provider to another. In the process of changing to a different service provider, your LEI code will not change. It is a back-end process that is not visible to end customers. LEIs can be transferred to a better, cheaper service provider at any time. Continue reading...

Can an individual have an LEI?

As the name suggests, LEIs are required for any legal entity that regularly incorporates financial transactions. This includes buying stocks, bonds, and other securities. A legal entity is any company or organization that has legal rights and responsibilities, including tax filings. It is a business that can enter into contracts either as a vendor or a supplier, as well as sue or be sued in a court of law. Continue reading...

Do LEI numbers need to be renewed?

The Global LEI System was created for a more transparent and accurate identification of legal entities that operate within today’s financial system. In order to keep the data relevant and up to date, the LEI number needs to be renewed annually. Once your deadline passes, the registration defaults to "lapsed" and you won't be able to make any trades until the number has been renewed. Continue reading...

Why is an LEI number required?

Why is LEI number required

A Legal Entity Identifier number or code is required to ensure a more transparent financial market. The initiative was created after the 2008 global financial crisis, with hopes to avoid any future global economic shocks of that severity. The LEI code is now essential for legal entities that operate within today's financial system. A companies LEI record will contain public information, that is accessible through a global database. Continue reading...

How much does an LEI number cost?

LEI number cost illustration

The Global LEI System (GLEIS) has been set up in a way where LEI cost can differ among various service providers. Obtaining an LEI number can cost you anywhere between $65 to $200, depending on who you're registering with. Since the number needs to be updated yearly - the costs will start to add up. For this reason, we encourage you to pay close attention to the price and take it as the primary factor when registering an LEI code. Continue reading...

LEI Lookup – Fully dedicated LEI search website

LEI lookup illustration

The LEI database, which is managed by the Global Legal Entity Identifier Foundation (GLEIF), is completely transparent and accessible to everyone - regulators, businesses and other entities - regardless if they possess an LEI code themselves. This guarantees transparency between the parties involved in any financial transaction. As the LEI codes are renewed each year, the database can be relied upon to display only up to date information. The LEI Lookup website not only offers information about the LEI code and its uses, but also a comprehensive Search tool, as well as LEI Registration, Transfer and Renewal service. Continue reading...

ISIN to LEI mapping

ISIN to LEI mapping

Within the world of hundreds of thousands companies, there are two primary identifiers used in finance. The first one being The International Securities Identification Number, otherwise known as ISIN, second The Legal Entity Identifier known as an LEI. These identifiers have a lot in common, they're both used to increase transparency and made up of alphanumeric digits with check numbers. Continue reading...

GLEIS | Global LEI System

GLEIS illustration

The Global LEI System (GLEIS) was born out of the 2008 Global Financial Crisis (GFC), when it became apparent that there was a greater need for transparency and security. GLEIS ensures straight forward, unambiguous identification of participants in financial transactions. Continue reading...

MiFID regulation | MiFID II LEI

MiFID is the Markets in Financial Instruments Directive. Applicable across the European Union since November 2007. Being a cornerstone of the European Union's regulation of financial markets looking to improve their competitiveness by generating a single market for investment services and activities, and to guarantee a high degree of systematised protection for investors in financial instruments. Continue reading...


vLEI will give legal entities, government organisations and organisations worldwide the ability to use non-repudiable identification data pertaining to their legal status, ownership structure and authorised representatives in their business activities.  Continue reading...

GLEIF | Global Legal Entity Identifier Foundation


GLEIF is uniquely positioned in the entity identification market, agnostic to any particular political and/or commercial interests. The foundations' overhaul is to ensure the operational integrity of the Global LEI System. GLEIF is the one behind continuous improvement of the information available within, and the quality of, the LEI data pool. Continue reading...

Company Autocomplete by LEI Register

The newest addition for optimizing user experience is an autocomplete plugin. “Company Autocomplete by LEI Register” is open source software, enabling this plugin will add an autocomplete function to the company name field in your standard Woocommerce checkout form. Continue reading...

Open LEI

open lei

Before the widespread adoption of the open LEI system, there were many inefficient, predominantly proprietary identifiers that, more often than not, provided false or outdated information. These shortcomings were a severe problem, particularly in financial markets, where the regulators, banks or other market participants were unable to access valid information about their counterparties. Continue reading...

European Market Infrastructure Regulation | EMIR


European Market Infrastructure Regulation (EMIR) is a European Union regulation for over-the-counter (OTC) derivatives, central counterparties as well as trade repositories first introduced by the EU in 2012 in fulfilment of their commitment at the G20 summit, an international forum for the governments and central bank governors of the European Union and 19 other countries promoting international financial stability. Continue reading...

What is an LEI database?

lei database

LEI database has greatly simplified dealing with international clients as there's no need for a time-consuming background check where previously the only information being relied upon was the company's own internet presence and local registry listings; often leading to hours of translating and web browsing with little confidence of the authenticity. Continue reading...

LEI Application – Apply For An LEI Online

apply for an lei online illustration

Applying for an LEI is a simple and straightforward process. With a reputable service such as LEI Register, an LEI application can take as little as three hours to process, after which you’ll receive your LEI and your information will be added to the global LEI database for anyone to search. Continue reading...

LEI Checker – Search Your LEI Online

lei checker illustration

An LEI checker is the easiest way to make sure your LEI code is valid. Anyone can use them to find all the information provided by their own LEI code or to get information about another entity. Read our guide to find out how to use an LEI checker to use the information the codes contain to your benefit. Continue reading...

Who Needs An LEI Number?

who needs an lei

Who needs an LEI number? LEI is needed by legal entities who take part in financial transactions and who wish to trade in financial markets, such as buying stocks, bonds, or other securities. There are also many regulations (dependant on jurisdictions) that require obtaining an LEI. Continue reading...

LEI for Trusts

trusts lei codes

A Legal Entity Identifier (LEI) is a unique reference code that is required by all legal entities. LEI data is available from a single database that helps to improve global entity identification. This includes companies, charities and also trusts. Without an LEI, an entity will not be able to trade on financial markets in the United Kingdom as the London Stock Exchange requires all legal entities to obtain an LEI. Continue reading...

Legal Entity Identifiers in KYC

KYC is a process of understanding who you do business with and assessing their suitability or risk to your organisation. Banks, insurers, creditors and more are increasingly demanding (thanks to the global drive in KYC regulation) that customers provide due diligence information to ensure they are who they say they are. Continue reading...

Digital Identity Predictions for 2020

A national identity scheme tell us a lot about the state that creates it. Schemes come in many forms with the government taking many roles from identity issuer to regulator. What does 2020 have in store for digital identity? Here’s some of our predictions. Continue reading...

The Future of Cybersecurity – Deloitte

cyber security lei code

Deloitte publishes its “Future of Cyber Survey” after surveying over 500 C-suite executives with responsibility of cybersecurity in organisations that make at least $500 million in annual revenue. We will review and summarise some of the findings of the survey in this blog. Continue reading...

Legal Entity Identifiers in Digital Certificates

Digital certificates are hugely important in encrypting the internet. Whether it’s for encrypting a website and adding the ‘S’ to HTTPS or it’s encrypting and signing a digital document like a PDF, digital certificates are everywhere. Up until now, they have solved some great security challenges on the internet by encrypting networks and communication channels. However, as we know, encryption is not always enough. Continue reading...

RegTech London – Event Summary

regtech summit

RegTech took place on 3rd October 2019 in St Paul’s London. The event was aimed at exploring how the financial services industry can leverage technology to innovate, cut costs and support regulatory change. St Paul’s saw a culmination of start-ups, technology providers, financial institutions, regulators and practitioners for a day of networking, seminars and collaboration. Continue reading...

What is LEI-Search?

lei search

LEI-search.info offers the most important information when it comes to Legal Entity Identifier providers. Potential customers can easily find the most suitable LEI code provider based on the LEI code’s price, LEI code’s average processing time, payment methods or the website language. The Legal Entity Identifier’s table is sortable by registration price, renewal price or by the average processing time. Continue reading...

LEI Register and RapidLEI Announce Official Partnership

London, UK and Tallinn, Estonia. January 10, 2019 - LEI Register, a leader in the provision and management of Legal Entity Identifiers (LEIs), and RapidLEI, a fully accredited LEI issuer specialising in the automation of the LEI issuance process, today announced a partnership. LEI Register will offer LEIs issued by RapidLEI, to make the registration of LEIs faster and more accurate for their global customers. Continue reading...