--- title: "What to Know Before Starting an RIA: A Practical Guide" description: Navigate the journey of starting your own RIA with key insights on independence, compliance, and strategic planning. Learn how to build and protect your financial advisory practice. image: https://blog.stpis.com/hubfs/imgi_4_shutterstock_2510293413-1024x683.png --- [![STP\_header\_logo](https://blog.stpis.com/hs-fs/hubfs/STP%20Growth%20Child/STP_header_logo.png?width=75&height=94&name=STP_header_logo.png "STP_header_logo")](http://stpis.com) - [FAQs](https://stpis.com/faqs-fund-administration-compliance-managed-services/) - [About](https://stpis.com/about/) - [About STP](https://stpis.com/about/) - [History](https://stpis.com/history/) - [Team](https://stpis.com/people/) - [STP Careers](https://stpis.com/careers/) - [STP Culture](https://stpis.com/careers/culture/) - [Benefits](https://stpis.com/careers/benefits/) - [Diversite, Equity, Inclusion & Belonging (DEIB)](https://stpis.com/careers/deib/) - [Hiring Process](https://stpis.com/careers/hiring-process/) [Portal Login](https://portal.stpis.com/) [Connect With Us](https://stpis.com/connect-with-us/) - [Who We Serve](https://stpis.com/who-we-serve/) - [Institutional Managers Investment operations services and innovative software for the front, middle, and back office.](https://stpis.com/who-we-serve/institutional-managers/) - [Wealth Managers Custom and turnkey asset management programs to grow assets and support clients.](https://stpis.com/who-we-serve/wealth-managers/) - [Emerging Managers Best-in-class full service solution to springboard your startup to the next level.](https://stpis.com/who-we-serve/emerging-managers/) - [Private Fund Advisors Comprehensive suite of fund administration, compliance, account and investor reporting services](https://stpis.com/who-we-serve/private-fund-advisors/) - [What We Do](https://stpis.com/services/) - [Investment Operations Outsourcing End-to-end investment operations and trading services.](https://stpis.com/services/investment-operations-outsourcing/) - [Fund Services Complete suite of services that deliver best-in-class fund administration.](https://stpis.com/services/fund-administration-services/) - [Compliance Services Get oversight that keeps you compliant and ready for changing regulatory requirements.](https://stpis.com/services/compliance/) - [Managed Services Designed to reduce operational burden, streamline workflows, and help you scale without adding headcount.](https://stpis.com/services/managed-services/) - [Trade Settlements Streamline processes, increase efficiency, and mitigate risk with post-trade settlement services.](https://stpis.com/services/trade-settlements/) - [Reconciliation Services Automate reconciliation tasks and strengthen oversight with reconciliation dashboards.](https://stpis.com/services/reconciliation/) - [BluePrint](https://stpis.com/blueprint/) - [Why STP](https://stpis.com/why-stp/) - [STP Knowledge Hub](https://stpis.com/stp-knowledge-hub/) - [Perspectives Fresh, original STP content written by members of our team, covering a broad range of topics.](https://blog.stpis.com/blog) - [STP in the News Our take on industry articles and topics written by our colleagues across the financial services space.](https://stpis.com/stp-knowledge-hub/in-the-news/) - [Case Studies Explore real-world success stories that highlight how we've helped clients overcome challenges, drive growth, and achieve their goals.](https://stpis.com/stp-knowledge-hub/case-studies/) - [Strategic Insights Stay ahead of regulatory changes, operational challenges, and industry shifts. Download our strategic insights to equip your firm with expert guidance on compliance, operations, and growth strategies.](https://stpis.com/stp-knowledge-hub/strategic-insights/) Aug 2025 # What to Know Before Starting an RIA: A Practical Guide [Lori Weston](https://blog.stpis.com/blog/author/lori-weston) Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://blog.stpis.com/blog/thinking-about-starting-your-own-ria-heres-what-you-need-to-know-1) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.stpis.com/blog/thinking-about-starting-your-own-ria-heres-what-you-need-to-know-1) [Twitter icon](https://twitter.com/intent/tweet?url=https://blog.stpis.com/blog/thinking-about-starting-your-own-ria-heres-what-you-need-to-know-1) [pinterest-p icon](http://pinterest.com/pin/create/link/?url=https://blog.stpis.com/blog/thinking-about-starting-your-own-ria-heres-what-you-need-to-know-1) [envelope icon](mailto:?body=https://blog.stpis.com/blog/thinking-about-starting-your-own-ria-heres-what-you-need-to-know-1) What to Know Before Starting an RIA: A Practical Guide 4:51   In today’s ever-changing financial services landscape, more advisers are breaking away from larger firms to launch their own **Registered Investment Adviser (RIA)** practice. The rewards? Greater autonomy, stronger client relationships, and the ability to build long-term enterprise value. But with independence comes new responsibilities—especially when it comes to compliance and registration. This blog distills the key insights from our recent eBook, “Establishing Your Own RIA: Your Registration and Compliance Questions Answered,” to help you navigate the journey. ### Why Go Independent? Going independent means calling the shots—on fees, service models, and technology—without another party’s oversight and interests. You can select the tech stack and vendors that work best for your practice and your clients, retain a higher percentage of your fees (often 75–95% after expenses), and design your business around your strengths. Many advisers also cite legacy building, niche specialization, and cross-practice synergies (like tax planning or insurance) as major motivators. ### Your First Critical Decisions Before you register, you’ll need to make a few foundational choices: - **Legal Entity Structure** – Most RIAs operate through an LLC, S-Corp, or partnership. Sole practitioners can register as both the firm and the adviser representative, but many choose separate entities for succession and sale flexibility. - **Service Offering** – Decide if you’ll offer financial planning, portfolio management, wrap fee programs, or other advisory services. If you have ancillary, non-advisory services to offer, review the pros and cons of offering these services under the same entity as the adviser or via a separate entity. Succession and resale often play a role in this decision, too. - **Client Base** – Identify your target market and understand any compliance implications of serving new client types. - **Fee Structure** – Choose between asset-based, fixed, or hourly fees, and determine billing frequency. - **Key Roles** – Designate a **Chief Compliance Officer (CCO)**—a regulatory requirement in most cases—along with other operational responsibilities. ### Registration: SEC or State? ### Whether you register with the **Securities and Exchange Commission (SEC)** or your state regulator depends on your assets under management (AUM): - **State Registration** – Generally required if AUM is under $100M (with exceptions, such as $25M in NY). - **SEC Registration** – Required for AUM over $100M, pension consultants with $200M+ in plan assets, or firms required to be registered in 15+ states. If you serve clients in multiple states, understand the **de minimis rules** (often five clients before registration/notice filing is required) and be aware of state-specific exceptions. ### Building a Compliance Program Regulatory compliance isn’t optional—it’s the backbone of your practice. A tailored compliance program should: - Reflect your specific services and clients. - Be administered by your CCO. - Avoid unnecessary “boilerplate” policies that don’t fit your firm. While **regulatory technology** can streamline tasks like trade monitoring or electronic communications review, it can’t replace the judgment of an experienced compliance professional. ### Managing Conflicts of Interest Going independent may reduce certain conflicts—like earning commissions and advisory fees from the same client—but others remain. Transparency and disclosure are non-negotiable. Examples include: - Referral arrangements with compensation. - Offering ancillary services like insurance or accounting. - Relationships with specific product providers. Your compliance consultant can help you identify, mitigate, and disclose these appropriately. ### Ongoing Compliance Obligations Compliance doesn’t stop after registration. Key ongoing requirements include: - **Annual Regulatory Filings & Client Disclosures** (Form ADV updates, Form CRS, Form U4, and potentially Forms 13F/13H/N-PX). - **Privacy Protections** under Regulation S-P. - **Books and Records** retention requirements. - **Annual Compliance Reviews** for SEC firms and some state registrants. - **IAR Continuing Education** where required by state law. - **Best Practices** in cybersecurity. ### The Bottom Line Launching your own RIA is an exciting opportunity to shape your future on your terms. With over 15,000 independent advisers in the U.S., there’s a robust ecosystem of vendors, platforms, and consultants ready to help you succeed. The key is preparation: make the right foundational decisions, implement a strong compliance program, and seek expert guidance from day one. **Your independence is an asset—protect it with the right strategy and compliance framework.**  [![](https://no-cache.hubspot.com/cta/default/20095280/interactive-191802947182.png)](https://blog.stpis.com/hs/cta/wi/redirect?encryptedPayload=AVxigLKUxaWufxE2ekqN4WuPXtUVHUQHXxw0vXM6Qy0cR94v00%2BfgM9F3K1jSby4%2FaIY3CrDulWLm3EowESs5%2FShGWilNUKmjpIiPy1DPCVWn%2Bfp0KD4EguqbyPUHzI1OjZ58K%2B3hs%2B4bikIZcFtY4MbRX8nFyec%2F2ZFLF%2B%2Fs416FWqvzaFkZ1VPmarpZ9%2FrNExBUA2eTgBPsUffDyPYqy%2BAhwYUfw%3D%3D&webInteractiveContentId=191802947182&portalId=20095280) [Compliance](https://blog.stpis.com/blog/tag/compliance) ## Related posts [![](https://blog.stpis.com/hs-fs/hubfs/shutterstock_2475089779-1024x638.jpg?height=200&name=shutterstock_2475089779-1024x638.jpg)](https://blog.stpis.com/blog/stp-more-than-a-vendor-why-were-your-true-partner) ## [STP: More Than a Vendor—Why We’re Your True Partner](https://blog.stpis.com/blog/stp-more-than-a-vendor-why-were-your-true-partner) [Jeff Hooks](https://blog.stpis.com/blog/author/jeff-hooks) Apr 2025 In 1998, while I was a college student at the University of California, Santa Barbara, I became... 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