Start an Investment Firm

If you want to start an investment firm, you should be aware that this type of business requires hard work, patience, and determination. You have to address the different aspects of the business from registration, marketing, etc.

Determine the appropriate structure to limit the liability just in case potential legal problems arise.

Start an Investment Firm

Are you the type of person who loves to work hard for long hours? Well, here’s good news for you. If you think that you can withstand the scrutiny of various government agencies and you want to serve clients to the best of your ability, you can start your own investment firm. This type of business is a great choice since you get to cater to the needs of your chosen market. You have to study the market thoroughly, so you can determine if the firm can be a viable business. Once you’ve completed your research, you can now work out on your business plan.

Decide early on as to the structure of the investment firm. There is a possibility that you’re going to enter some liabilities in the future and in order to protect your personal liability, it would be best to choose a LLP (Limited Liability Partnership) or the LLC (Limited Liability Corporation). The tax advantages and liability protection offered by these business structures tend to vary from one state to another. It would be best to consult a lawyer. This will help you deal with all the legal matters with ease. There is incorporation fees that you need to pay as well as legal fees.

Registration and Marketing

You have to contact SEC and comply with their requirements. In most cases, you have to register with the office. You can obtain relevant information from the concerned business office of your country or state. Aside from the SEC or state registration, you should contact IARD or the Investment Adviser Registration Depository. At this point, your expenses can reach around $10,000 or more. If you’re going to handle the operations officer’s task, you have to pick the right accounting system and portfolio management system. The firm should have a director who will be in charge of the investment philosophy.

Marketing the firm is vital especially prior to opening. All your staffs should have licenses, so you could provide professional and quality services at all times. Decide on the advertising methods that you can use for the firm. Since this is a serious undertaking, you can try billboard ads, mobile ads, and many others. Make sure that you also create a business card. The ads should be released before the opening date. You can also ask the help of friends and family members. Capital is no longer a problem if you have enough savings or you can use a business plan to apply for loans. With a detailed plan, you can secure the needed funding with ease.


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