3 Reasons Every Advisor Should Have an Entity
https://youtu.be/hkRMRGrtqZs As an advisor and small business owner, you should use a formal equity structure, such as an LLC or corporation. This is a normal step for most independent RIAs, but is slightly more complicated for independent registered reps since you are personally licensed and compensated. In addition, the recent advisor IRS tax court case even further confused most advisors and their local tax/legal counsel. It is important (and indeed possible) to set up and use an entity as it will help you in almost all cases. The reasons why might surprise you. Join us as we talk about the 3 key reasons why you shouldn’t be operating as just a sole proprietor and most importantly, HOW you can set this up correctly the first time. Whether you already have an entity or looking into how you can set up and use one compliantly, join us to learn about why you need one, how to do it, and how SRG can make the process turnkey for you. About David Grau, Jr., MBA:David Grau Jr. is the founder and CEO of Succession Resource Group. He is currently one of the leading speakers in the financial services industry on mergers and acquisitions of independently owned financial services firms, as well as valuation strategies and practice continuity issues, with over 200 presentations to his credit. In the past five years, he has spoken at variety of the industry’s leading firms, including LPL Financial Services, Wells Fargo, Ameriprise Financial, MetLife, ING, AIG, Fidelity, Jackson National, Prudential, FSI and at many FPA chapters around the country. As an expert on advisor valuation, acquisition and succession planning, David has assisted hundreds of advisors and other professionals buy, merge, sell, and craft their transition plan for the sale of their business over the last decade.
S Corp or LLC: A Guide to Set Up Your Financial Services Company
https://youtu.be/VAok50-JQuk S Corp vs LLC: What you need to know For many advisors, setting up your business entity properly to support your future endeavors involves adopting a more formal business structure, whether it is a partnership, S corporation or LLC. In fact, the need to “button up” your business setup has become even more evident following the recent IRS Tax Court case involving an advisor. In this webinar, we will cover the nuances of establishing and using an entity correctly to take full advantage of the structure and not run afoul of the IRS. We will provide 2 specific reasons why and when you should consider being more than a sole proprietor, and the 3 things you need to be doing if you have an entity. Whether you already have a business or plan to, join us to learn the best practices and put your business entity formation on the right track.
Your Guide to Proper Entity Structure
What is best entity structure for financial advisors? For advisors affiliated with a broker-dealer, using a formal entity structure like a limited liability company or corporation can be challenging since you are paid directly as the licensed professional. But, as your book of business grows and you hire staff, sign a lease, and take on other business related liability, limiting your personal liability becomes increasingly important. In addition, using a more robust equity structure allows for a variety of other options that are helpful for succession planning and growth through acquisition. “Your Guide to Proper Entity Structure” contains: a cheat sheet covering the main advantages and disadvantages of the most commonly selected entity types. a bonus checklist for best practices in using an entity in the financial services industry. For entity formation services, please visit our Entity Support service for more information. DOWNLOAD NOW
How and Why to Use an Entity With Your Broker-Dealer
https://youtu.be/-U1eq1LfNfk Using an Entity with a Broker Dealer Almost half of advisors affiliated with a broker-dealer use an LLC or S-Corp., but almost none are set up appropriately for the IRS. In this session, we will start with why every advisor should think about setting up an entity to operate their business, what are the most important steps and which are most often missed (and what the implications are), as well the toughest part – how to set up and use the entity correctly to avoid future issues and minimize audit risk. Whether you are thinking about setting up an entity or already have one, attendees will learn how to do it right or confirm they are part of the minority doing everything correctly! Entity Expert Speakers David Grau Jr., MBADavid Grau Jr. is the founder and CEO of Succession Resource Group, a succession and M&A consulting company for advisors. Prior to launching SRG, David was the leading M&A consultant for a well-known succession planning firm to advisors where he led and developed numerous programs for RIAs. David is a published author and accomplished speaker, and has been interviewed and cited in dozens of publications over the last decade. Nicole Frey, CFP®Nicole is the Senior Project Coordinator at Succession Resource Group. Until her relocation to Oregon in 2014, Nicole worked as a senior legal assistant for a law firm in Washington for seven years where she managed multiple cases, communicated with clients/courts/government agencies, as well as drafted pleadings and legal notices. Nicole brings extensive experience in contract preparation and project coordination to our SRG clients.
Audit Risk and Using S Corp for Financial Advisors – The Fleischer Case
As a small business owner and advisor, your attorney or accountant will provide many reasons why you should consider forming a corporation or limited liability company. These reasons include limiting personal liability, the ability to share equity, and possibly reduce taxes. For independent Registered Investment Advisory firms and insurance agencies, the setup and use of an entity is relatively routine – you file and form your business entity, and clients and/or carriers contract with that entity and pay that entity directly.