New RIA - Questions around LLC formation and location
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I am looking for general advice and different opinions on the matter of LLC formation for a new RIA business.
I am in a situation where I am going to have a small number of clients in multiple states. For argument sake, I will have less than 5 clients in approximately 5-6 states. Total of about 30 clients.
I am trying to determine where might be the best location to establish my LLC. I currently live in CA and I will have 1 client in CA. Because I live in CA, do I need to form the LLC in CA?
Say I form an LLC in Nevada. It appears that I have two concerns.
1) If I am working with many clients in a particular state, I may need to register as a foreign entity... I may also need to register as an RIA in that state as well.
Do the same deminimus rules apply for registering as an RIA the same for filing a domestic corporation.
What determines whether or not I need to file a foreign LLC in a state?
Any color on this is greatly appreciated.
We receive these type of questions daily. Rather than post it on the board, why dont you give me a call and I will have the founder of RIA in A Box speak with you. We have created in excess of 830 RIA's in every state and with the SEC. I am the Director of Business Development and do not go that deep into the process. If you would like, you may reach me anytime at 212-840-1332. To let you know, we are not the type of fim that will try to convince you to hire us. We provide information so that you can make an informed decision.
I am not from the US, and I'm not sure I perfectly understand the role of an RIA.
- Just selling stocks or providing holistic financial advice (pension planning, trusts, tax, etc...)
- How is and RIA remunerated?
- If it is through commissions, do you need to set up an intermediary agreement with the product providers (funds, etc...)?
- Do I need to be a US citizen to set up an RIA firm? Have you ever helped non citizens in setting up an RIA firm.