Best route to forming an LLC?

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Oct 27, 2009 11:40 pm

I'm looking to open a RIA in Nebraska. For those who have walked this path before, can you give me some ideas on how you formed your LLC? Did you go with a company to help you prepare the forms, or did you file all the forms yourself. If you chose the second route, do you have any recommended links on how to start the process?

Oct 28, 2009 10:44 am

It's a multistep process. Form the LLC using a lawyer (some have used LegalZoom -but I don't know anything about them)

Then you or another firm you hire, will set up the RIA through the state or SEC (if you have enough assets)

You also need to check you local town/city rules to see if you need to register your LLC with them.

Oct 28, 2009 12:54 pm

Um... honestly, if you have some time, do it yourself. All the info you want is out there.

In NJ, I filled for my LLC online, paid the fee, got my certificate in the mail.

For RIA, just google, you will find all the info, but it is very manageable for the most part. No need to recreate the wheel. Trade PMR, Fidelity, etc all have good guides for going indy.

Oct 28, 2009 4:11 pm
 
 
Agreed - do it yourself.
 
While I'm not familiar with Nebraska laws, in Nevada you can form an LLC for $175, and its done within 48 hours.  I had an attorney form a LLC for me previously, and it cost about $1,500.
 
Check out your state's Secretary of State web site.
Oct 28, 2009 8:46 pm

In my state even online is $600... ripoff.

Oct 29, 2009 2:31 am

yep, paid $125 for NJ LLC

Paid $200 to submit to state/sec for RIA firm application for adv part 1

Paid $50 to register myself as rep.

Only other registration fees were for the NJ Insurance producer license.

Dec 8, 2009 6:38 pm

Is it ok to register an LLC in Delaware and be registered (RIA) in another State?

Dec 9, 2009 1:17 am

you will have to register in both then if i am correct.

Dec 9, 2009 12:32 pm

I don't think it matters where you form the LLC. It is a legal entity. If you form the LLC in one state, then move to another, you do not have to re-file for a new LLC in your new state. However, if you are not an SEC-registered RIA, you will have to register your RIA (not the LLC) with the Administrator in the state that you have an office in, and every state that you have clients in, except for those states that recognize the de minimus client rule (i.e. if you have five or less clients in a de minimus state, you do not have to register in that state.) Most states do recognize the de minimus rule, but a few do not. For full disclosure, I'm still a newbie. I've been studying my arse off on Series 65 stuff as my test is tomorrow. Once I pass, I plan to form my LLC in Nebraska and take it from there.

Dec 9, 2009 2:55 pm
Flyjetz:

I don't think it matters where you form the LLC. It is a legal entity. If you form the LLC in one state, then move to another, you do not have to re-file for a new LLC in your new state. However, if you are not an SEC-registered RIA, you will have to register your RIA (not the LLC) with the Administrator in the state that you have an office in, and every state that you have clients in, except for those states that recognize the de minimus client rule (i.e. if you have five or less clients in a de minimus state, you do not have to register in that state.) Most states do recognize the de minimus rule, but a few do not. For full disclosure, I'm still a newbie. I've been studying my arse off on Series 65 stuff as my test is tomorrow. Once I pass, I plan to form my LLC in Nebraska and take it from there.

 
Dec 9, 2009 2:58 pm

So, are you new to the business?  And you are starting an RIA from scratch, with no experience?  Do you have ANY related experience?  I'm not being critical, I have just rarely heard of that.

Dec 9, 2009 3:01 pm

I'll vouch for Flyjetz experience.  Not the normal experience you would receive from working at a firm, but he's there.  

Dec 9, 2009 3:52 pm

Moraen: Thanks.

SometimesNowhere: I'm not looking to be flamed, but I understand that's part of this forum's culture. That's fine. I have thick skin. Was my advice wrong? I'm pretty sure I'm right, but if not, I qualified my experience accurately, not like a lot of other posters on here.

B24: Thanks for your doubts. It only fuels my fire. I'm following a route that most don't. I have a unique circumstance and situation that I expect will lead me to a second career in this industry. I'm not there yet, but have time on my side. Moraen has actually taken the time to converse with me and provide advice and encouragement. He clearly gets it.

Dec 12, 2009 1:06 pm

Pay a lawyer to draft the financial planning agreement, advisory agreement, written supervisory procedures, code of ethics, and ADV II. Everything else should be done by you (if your goal is to save money).

Dec 12, 2009 3:22 pm

http://www.ailcorp.com/stateincorporation_information.aspx?stateId=29&corpTypeId=200

Try the link above.

I did mine through my state it was $150.

For your RIA I used riainabox they do a great job and it is well worth the small cost.


Dec 12, 2009 3:31 pm

How did you do on the 65?

Dec 12, 2009 3:40 pm

Let's just say I passed. It was a long time ago and I have no idea what I scored. Somewhere in the 70s I'm sure. 

Dec 12, 2009 3:56 pm

Where abouts in Nebraska are you? Have you decided on a custodian? 

Dec 12, 2009 3:56 pm
natell:

Let's just say I passed. It was a long time ago and I have no idea what I scored. Somewhere in the 70s I'm sure. 

 
 
Sorry, Natell I should have directed the question.
I was asking flyjetz as he took the exam on Thursday.
 
 
Dec 12, 2009 3:58 pm

My bad. I am new here so I need to get used to this stuff. Sorry.