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New RIA - Questions around LLC formation and location

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Apr 19, 2010 10:44 pm

Hi everyone.

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.



Apr 22, 2010 9:01 pm

Hi Brian-

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.


Ryan Marcus

Apr 30, 2010 3:38 am

Hi Ryan,

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.

Many Thanks,