Office set-up - $15,000-$20,000
First and last month’s rent, computers, desks, printers, phones, Internet, and the DBA brand name. “Consider 300 to 400 square feet office space per person,” says Advisor Center's Tom Daley.
Errors & omissions insurance - $3,000-$5,000 a year
Sometimes covered by the b/d, sometimes not.
Repapering (ACAT fees) - $3,000-$5,000
Depends on the number of accounts; usually will be covered by the new b/d.
Termination fees - $75 per account to new clearing firm; $25-$50 per account if staying on the same clearing platform.
Typically paid by the new b/d, but some advisors may have to pay out of pocket.
Signage, business cards, etc. - $1,000 to $5,000
Simple or flashy, depending on your brand.
Operating capital - $10,000 to $20,000
For rent, security deposits, payroll and opening bank accounts.
Cost to register RIA - $20,000 to $25,000
Hiring a law firm to register the RIA, create an operating agreement and an LLC agreement.
Acquire technology systems - $20,000 to $50,000
Portfolio management system, CRM, exchange server for e-mail and web hosting, rebalancing software, etc.
