How to Start a Financial Advisory Firm
The order of work for opening an advisory practice, with federal points quoted from the BLS, SBA and IRS. Licensing and registration questions go to the regulators.
Starting an advisory firm involves the setup steps below, along with licensing and registration questions to take to the right regulator. This page sets out the order and quotes federal sources; it doesn't say which licenses or registrations apply to you. Billing a planning fee or a retainer is covered on the financial advisor invoicing guide linked below.
The BLS profile of personal financial advisors (In the US, last modified October 29, 2026) says: "Personal financial advisors who directly buy or sell stocks, bonds, or insurance policies, or who provide specific investment advice, may need a combination of licenses that varies with the products they sell." It adds: "In addition to being required to have those licenses, advisors in small firms that manage clients’ investments must be registered with state regulators, and those in large firms must be registered with the U.S. Securities and Exchange Commission (SEC)."
First invoice, sample figures only: a one-time financial plan at 1 × $520.00 and a progress review meeting at 1 × $140.00 come to $520.00 + $140.00 = $660.00.
Step-by-step startup guide
Follow these steps to launch your financial advisor business on solid footing.
- 1
Decide how you'll serve clients
Write down the services you plan to offer and how you'll be paid. The BLS profile (In the US, last modified October 29, 2026) says self-employed advisors "either charge a flat fee or earn commissions for the financial products that they sell."
- 2
Find out which licenses and registrations apply
The answer depends on the products and advice you offer. Ask your state securities regulator, and a securities lawyer, before you take on a client.
- 3
Form and register the business
Choose a structure with a lawyer or an accountant and register it under your state's rules.
- 4
Get an EIN
The SBA (In the US, checked October 31, 2026) says: "Your Employer Identification Number (EIN) is your business’s federal tax ID number." The IRS's EIN page (In the US, IRS, last reviewed or updated July 17, 2026) says: "You can get an EIN for free directly from the IRS in minutes."
- 5
Look at insurance
In the SBA's launch guide (In the US, SBA, checked October 31, 2026), the agency says: "You also may be legally required to purchase certain types of business insurance." Ask a licensed insurance agent which policies an advisory firm should consider.
- 6
Bill your first engagement
Put the service, the period, the fee and the due date on the invoice. The financial advisor invoicing guide covers retainers and planning fees.
Tips for starting your financial advisor business
- Keep a written record of how each client pays you, flat fee or commission, before the work starts.
- Separate firm money from personal money from the first day.
- The IRS estimated taxes page (In the US, IRS, last reviewed or updated September 25, 2026) says individuals "generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed." Set money aside each quarter for it.
- Ask your state securities regulator before you advertise any service.
How Billed helps you get started
Features to look at as you set up your business.
Recurring Invoices
Billed's features page says: "Save time by sending invoices on a regular schedule so you don’t have to create invoices again and again."
Payment Receipts
Billed's features page says: "Send payment receipts to your clients after they have paid for your invoices."
Invoice History
Billed's features page says: "Billed App keeps complete history about the Invoice and its payments from the moment it is created."
Email Templates
Billed's features page says: "Customize all the emails that are sent to your customer to match your business voice."
Frequently asked questions
More Startup Guides
Send Your First Invoice
Create invoices, track payments and keep your clients' details in one place with Billed.
At a glance
| Step | Who answers it | Source quoted here |
|---|---|---|
| Licenses and registration | Your state securities regulator or a securities lawyer | BLS (In the US, last modified October 29, 2026) |
| Tax ID | The IRS | SBA and IRS (In the US, IRS, last reviewed or updated July 17, 2026) |
| Insurance | A licensed insurance agent | SBA (In the US, checked October 31, 2026) |
| First invoice | You | Financial advisor invoicing guide |
When this isn't for you
If you'll work as an employee of an existing advisory firm or broker-dealer, this checklist for opening your own firm won't apply. For registration questions, go to your state securities regulator or a securities lawyer.