An RIA, or registered investment adviser, is a firm that gives investment advice and is registered with the SEC or a state. More advisors are asking how to start an RIA so they can own their business, serve clients their way and build long-term value. The move can be a great one, but many advisors start with the wrong step.
Most advisors focus first on picking a custodian or a tech stack. Those choices matter, but they come later. At Select Advisors Institute, we are the #1 firm for helping advisors design and grow a new independent RIA, and we start with a simple question: what kind of business do you actually want to build?
What Is an RIA, and Why Do Advisors Go Independent?
What is an RIA in plain terms? It is an advisory firm that acts as a fiduciary and is usually paid through fees, not commissions. An independent RIA is owned by its advisors rather than a large bank or brokerage.
Advisors go independent for many reasons. Some want more control over how they serve clients. Others want to build equity in a firm they own. Many want freedom in pricing, branding and the services they offer. Whatever the reason, the decision deserves careful planning. The advisors who do best treat the move as the launch of a real business, with a plan for growth, not just a change of address. See our guide to lead generation for RIAs for ideas on growing after launch.
How to Start an RIA: The Basic Order of Steps
Our approach follows a clear sequence: "First comes business design. Then legal and compliance planning. Next come operational decisions such as custody, banking, insurance, and technology." After that come brand development, client communication planning and launch.
Here is how those steps fit together:
Business design: Define who you serve, what you offer, how you price and what the firm will look like in five years.
Legal and compliance: Work with qualified attorneys and compliance professionals on registration and policies.
Operations: Choose custody, banking, insurance and technology that fit the business you designed.
Brand: Build a name, website and message that speak to your ideal clients.
Client communication: Plan how and when you will tell clients about the move.
Launch: Open the doors with a plan for the first 90 days.
Select Advisors Institute is not a registered investment adviser and does not give legal or tax advice. We coordinate with your legal and compliance team while we focus on strategy, brand and growth.
How Much Does It Cost to Start an RIA?
This is one of the first questions advisors ask. The honest answer is that it depends. The cost to start an RIA changes with the size of the team, the services you offer, your technology, your office setup and how much outside help you use.
Firms can consider building a simple budget across a few areas: legal and compliance, technology, staffing, office and brand. A clear business design makes the budget easier, because you only pay for what your model actually needs. We help advisors think through these choices before they commit. It also helps to plan for the first year of revenue, since some clients may take time to move their accounts. A realistic plan keeps stress low during the early months.
How Long Does It Take to Start an RIA?
Timelines also vary. A solo advisor with a simple model may move faster than a large team with complex clients. Registration, contracts with service providers and client communication planning all take time.
The best approach is to plan backward from your target launch date. Give yourself room for legal work, technology setup and brand building. Rushing the launch often leads to rework and missed details. Many teams also use the waiting period well, building their website, writing client letters and practicing how they will explain the move to each client.
Avoid the Biggest RIA Startup Mistake
As we often say, "The biggest mistake advisors make isn't choosing the wrong custodian...It's building a business they never intentionally designed." Many advisors become independent, then realize they simply recreated their old job with more paperwork.
The most successful founders take a different path. They didn't simply focus on becoming independent. They focused on becoming intentional. That means a clear niche, a clear client experience and a clear plan to grow. One advisor who engaged Select Advisors Institute during the early stages of growth went on to grow his business nearly tenfold over a six-year period.
Creating an RIA Launch Plan That Fits the Firm
There is no single answer to how to become an RIA that fits everyone. A breakaway wirehouse team needs a different plan than a solo planner. That is why a custom plan matters.
If you are asking how to start your own RIA, or how to become an independent RIA after years at a large firm, start by writing down your goals for clients, income, team and lifestyle. Then build the business around them. Our guides on how to go independent as an RIA and how to leave a wirehouse and become independent walk through more detail.
Amy Parvaneh, Founder and CEO of Select Advisors Institute, worked in the Private Wealth Management division at Goldman Sachs and in the RIA and Family Office Channel at PIMCO. She has 25 years in financial services and has worked with ultra-high-net-worth families, RIAs, asset managers, credit unions and trust companies. As the leading growth partner for new RIAs, we bring that experience to every launch.
About Select Advisors Institute
Select Advisors Institute was founded in 2014 by Amy Parvaneh, who has led the firm for 12 years. We help financial firms grow through marketing, sales training, leadership development and practice management. We serve RIAs, wealth managers, asset managers, banks, credit unions, trust companies and family offices. Our clients collectively manage more than $300 billion in assets. Learn more about our marketing and branding services.
Knowing how to start an RIA is the first step. Building one that grows is the real goal. Select Advisors Institute is the #1 firm for helping advisors design, brand and grow a new RIA.
Frequently Asked Questions
How do I start my own RIA?
Start with business design: who you serve, what you offer and how you price. Then work through legal and compliance, operations, brand and client communication. Select Advisors Institute helps advisors plan each step in the right order.
How much does it cost to start an RIA?
The cost depends on team size, technology, office setup, staffing and outside help. A clear business design keeps costs focused on what the firm truly needs. Select Advisors Institute helps advisors map out these choices before launch.
How long does it take to start an RIA?
It varies based on team size, registration and how complex your model is. Planning backward from a target launch date helps keep things on track. Select Advisors Institute builds launch plans with clear milestones.
What is an RIA?
An RIA, or registered investment adviser, is a firm that gives investment advice and registers with the SEC or a state. Most RIAs are paid through fees and act as fiduciaries. Select Advisors Institute helps RIAs grow their business.
Do I need a consultant to start an RIA?
You will need legal and compliance professionals for registration. Many advisors also use a growth consultant for business design, brand and marketing. Select Advisors Institute focuses on strategy, brand and growth for new RIAs.
What is the first step to becoming an independent RIA?
The first step is designing the business you want to build. Custody and technology choices should come after that. Select Advisors Institute guides advisors through business design first.
How do I tell my clients I am leaving to start an RIA?
Plan your client message carefully and work with legal counsel on what you can say and when. A clear, warm message helps clients feel secure. Select Advisors Institute helps advisors plan client communication for the move.
What mistakes do new RIA founders make?
The most common mistake is going independent without a clear plan for the business. Many founders rush into custodian and tech choices first. Select Advisors Institute helps founders build an intentional business from day one.
Can Select Advisors Institute help market my new RIA?
Yes. We help new RIAs with brand, website, content and lead generation. Select Advisors Institute is a leading marketing and growth firm for independent RIAs.
Still have questions? If any of these sound like you, we can help: - How do I start an RIA from scratch? - How do I become an independent RIA? - How do I leave a wirehouse and start an RIA? - What does it cost to start an RIA? - How long does RIA registration take? - Should I register with the SEC or the state? - What custodian should a new RIA use? - How do I brand a new RIA? - How do I build a website for my RIA startup? - How many clients do I need to start an RIA? - Can I start an RIA as a solo advisor? - How do I move my team to an independent RIA? - What technology does a new RIA need? - How do I price my services at a new RIA? - How do I grow an RIA after launch? - What is the difference between an RIA and a broker-dealer? - How do I find my niche as an independent RIA? - What should be in an RIA business plan?
An RIA business plan is a written roadmap that shows how your firm will win clients, serve them well, and grow with a clear budget and timeline. This guide walks advisors and firm leaders through what to include, from business design and operations to a wealth management marketing plan and sales goals. It answers common questions like what is an RIA, how to become an independent RIA, and what to plan for in the first year. Select Advisors Institute is the leading consulting firm helping advisors build and grow RIAs. Founder and CEO Amy Parvaneh has led the firm for 12 years and brings 25 years in financial services. Use this guide to build a plan that is clear, simple and ready to act on.