Wondering how to start an RIA? The path from idea to open-for-business is more straightforward than most people expect, but the order matters. Skip the plan and jump straight to an exam, and you can end up licensed with no idea what comes next. Here is the sequence we walk new advisers through: plan, get licensed, register, choose a custodian, and build client relationships.
Step 1: Write your business plan
Every registered investment adviser starts as a business, not a license. Before anything else, get clear on the fundamentals: who you serve, what you offer, how you charge (a flat fee, a percentage of assets, hourly, or a mix), and what your first year actually looks like on paper. This is also when you form your legal entity, usually an LLC, and lock in your firm name.
A tight plan makes every later step easier, because your Form ADV, your fee schedule, and your compliance policies all flow from it. This is the part we love helping with. If you want a second set of eyes on your model before you spend a dollar on filings, Inovadora can help you plan.
Step 2: Get licensed
To give advice for a fee, at least one person at the firm must qualify as an investment adviser representative. That means passing the Series 65, or the Series 66 paired with a Series 7. Licensing can run in parallel with your planning, so you do not lose time. We break down both paths, the costs, and how to pass the first time in our guide to RIA licensing and the Series 65.
Step 3: Register your firm
Registration is the official part: Form ADV (Parts 1, 2A, and 2B), filed through the IARD system, plus registration with either your state or the SEC depending on how much you will manage. Firms under roughly $100 million in assets generally register with their state, while larger firms register with the SEC. This is the core of what we do, as a flat, no-surprises RIA registration service. Want the numbers first? See how much it costs to start an RIA.
Step 4: Choose a custodian
A custodian holds your clients assets and clears their trades. Think Schwab or Fidelity, or newer platforms like Altruist that are built for smaller and startup RIAs. Compare minimums, technology, pricing, and the client experience. Your custodian shapes your tech stack, so choose one before you onboard your first client.
Step 5: Build client relationships
Now you build the practice. Set up your CRM, financial planning and portfolio tools, a simple website, and an ongoing compliance calendar. Then focus on what actually grows a firm in year one: relationships. A clear niche, steady referrals, and consistent follow-up beat any marketing gimmick.
How to start an RIA, in one line
Plan it, get licensed, register, pick a custodian, and build relationships. We help you get across the registration line so you can focus on clients. See how Set Up the Shop works: a flat $3,000 registration service, with no membership, no bundled software, and no upsell pressure.