With your business official with the secretary of state, you’ll want to next apply for an Employer Identification Number (EIN) with the IRS. This is a simple process that can be done online in a matter of minutes, and the IRS provides you with your EIN immediately after your application. With your EIN in hand, you can now apply for bank accounts and credit cards. Start with a basic business checking account with no fees or minimum balance requirements for bank accounts. You can always upgrade to a higher yield checking account later (with minimum balance requirements). Applying for business credit cards is another good idea, especially if you think you may need to “float” some expenses early on to make ends meet.
In our previous articles, we laid the groundwork to plan your independent RIA, including your business strategy and your budget. But one equally important decision (especially to Uncle Sam and FINRA) lies ahead: your business structure. You can’t run an RIA as a freelance operation, and there are significant tax and legal benefits to separating your business and personal assets as an organized company. This article aims to help you choose what structure is best for you.
In the previous article, we explored a series of choices you’ll need to make for your new business. These homework items will better prepare you for decisive actions that are critically important to launching. In this article we explore your budget. What sort of finances do you realistically need? What should you spend your money on?
This article is meant to be part of a blueprint that helps you address the key questions you’ll face on your journey to independence. Being an entrepreneur means having to deal with issues that were previously handled by your employer.
Once you decide to go down the path of entrepreneurship, while rewarding in many aspects, it is still a psychologically draining experience. At least when you are part of a large corporation, the pressure and anxiety is well known and there are support mechanisms to help as you move up the corporate ladder. This support
For financial advisors thinking about starting their own RIA, it’s important to realize that success requires an entrepreneurial mindset. Every day out on your own can feel like you’re fighting an uphill battle, but this is part of the entrepreneurial spirit.