Starting a Financial Planning Business: Key Setup Steps

Starting a financial planning business can look “simple” from the outside. It’s mostly conversations, numbers, and trust. No trucks. No warehouse. No piles of inventory.

But don’t let that fool you. You’re dealing with people’s money, goals, and stress. That creates a different kind of weight. You need to be ready for that.

Startup Checklist for a Financial Planning Business Setup

This business fits you if you like problem-solving, clear communication, and steady structure. It also fits you if you can stay calm when someone feels anxious about their future.

It may not fit you if you need fast wins, hate paperwork, or avoid hard conversations. You can learn skills, but you can’t fake patience for long.

Before you go any further, do this quick check. Be honest. You’re not trying to impress anyone.

Fit: Are you okay being responsible for advice that impacts someone’s life decisions?
Passion: Do you actually care about helping people plan, or do you just want a new job title? If you need a reset, read what passion looks like in real life.
Motivation: Ask yourself this exact question: “Are you moving toward something or running away from something?”
Risk and responsibility: Are you ready for uncertain income, long hours, and full responsibility for quality and accuracy?

One more thing. Talk to people who already do this work. Just don’t talk to someone down the street who could see you as direct competition.

Look for owners in a different city or state. Ask questions that help you see the full picture.

What surprised you most in your first year getting started?
What do new planners underestimate about compliance and paperwork?
If you had to start again, what would you set up first?

If you want a wider view of what business ownership can feel like, read this business inside look. It helps you think past the excitement.

Step 1: Understand What a Financial Planning Business Really Is

A financial planner helps clients build a plan for their money decisions. That can include saving, insurance, taxes, retirement, and investing, depending on your scope and licensing.

Start here because your services decide everything else: your legal setup, your tools, your pricing, and who you can help.

If you want a clean, plain definition, start with the Investor.gov financial planner overview. It gives a reliable baseline.

Step 2: Pick Your Focus and Your Ideal Client

“Financial planning” is a wide label. If you stay too broad, your message gets fuzzy and your service packages turn into a mess.

Pick a lane first. You can widen later once your foundation is solid.

Here are common client groups you can build around:

Young professionals who want a plan and structure
Families juggling housing, debt, and education savings
Pre-retirees who need retirement planning decisions
Retirees focused on income planning and risk control
Small business owners with personal and business money overlap

If you want a general view of what personal financial advisors commonly help with, the Bureau of Labor Statistics overview shows typical topics and work patterns.

Step 3: Decide What You Will Offer (And What You Will Not)

New owners often try to offer everything. It sounds helpful, but it can create confusion, risk, and delays.

Instead, define your services like a builder defines a project scope. Clear boundaries protect you and the client.

Common services in a financial planning business include:

Written financial plans with goals, action steps, and timelines
Cash flow planning and debt payoff planning
Retirement planning and distribution planning
Insurance needs review and coverage planning
Tax-aware planning ideas (not filing unless qualified)
Estate planning coordination (working with attorneys)
Investment planning and portfolio guidance (when licensed and registered)

Think about the flip side. The more complex your services, the more your compliance, documentation, and systems need to handle it.

Step 4: How Does a Financial Planning Business Generate Revenue?

You earn income by charging for advice, planning work, and sometimes product-related compensation, depending on your business model and licensing.

The key is clarity. Clients should understand what they pay, what they get, and when payment happens.

Common revenue models include:

Hourly: You bill for time spent on planning and meetings.
Flat fee: You charge a set price for a defined plan package.
Subscription or retainer: Clients pay ongoing for access and periodic updates.
Assets under management: You charge an ongoing fee based on managed investments.
Hybrid: A mix of planning fees and product commissions (if applicable).

Pricing is not just math. It’s also positioning. Your pricing tells people who you’re for, even before you speak to them.

If you want help thinking through pricing choices, this guide on pricing your products and services can help you structure it without guessing.

Step 5: Validate Demand Before You Build Anything Big

Don’t start with a logo and a website. Start with proof that real people want what you plan to offer.

You do that by talking to your target customers and comparing what competitors offer in your area.

Here are simple ways to validate demand:

Interview 15–30 people in your target group about their finances questions and pain points
Review local competitors and document what they offer, how they position, and how they charge
Test two service packages with clear deliverables and see which one gets interest
Track objections you hear and adjust your scope and messaging

This is the point where you should also study basic supply and demand. It keeps you grounded in reality. Use this supply and demand guide as a simple reference.

Step 6: Choose Your Startup Scale (Solo, Small Team, or Firm)

This business can start small. Many owners begin solo, work from a home office, and meet clients virtually.

That’s the most common path for first-time entrepreneurs because it keeps risk and overhead lower.

A larger-scale setup is possible too, but it changes your requirements fast. A firm model may involve multiple advisors, dedicated compliance support, a bigger office setup, and higher fixed costs.

Here’s a clean way to think about it:

Solo lean start: You can often start on your own, fund it yourself, and build step by step.
Small team: You may bring help later for admin, scheduling, or client support.
Firm build: You may need partners, deeper funding, and a full compliance plan from day one.

If you’re unsure what’s realistic for you, read these start-up considerations and compare them to your available time, savings, and support.

Step 7: Picture a Day in the Life Before You Commit

Most people picture the meetings. They forget the work between the meetings.

So let’s make it real. Here’s what a typical day can look like when you’re up and running.

Review schedule, follow-ups, and plan deadlines
Client meeting to gather goals and financial details
Plan-building time: cash flow, projections, scenarios, and recommendations
Documentation: notes, disclosures, and client files
Client meeting to review the plan and decide next actions
Prospect calls and referral follow-ups
End-of-day admin: reminders, emails, and next-step planning

Now think about the flip side. Are you comfortable doing deep-focus work alone for hours? Can you handle emotional client conversations without absorbing their stress?

Step 8: List Your Essential Tools and Startup Equipment

This is a professional service business. Your “equipment” is mostly technology, secure storage, and a clean meeting setup.

Costs depend on brand choice, software features, and whether you start solo or hire staff early.

Here’s an essential list you can build from. Use it like a shopping list, and scale it based on your plan.

Core hardware (one-time purchases)

Business-grade computer
External monitor
Webcam
Noise-canceling headset
Smartphone (or business phone service)

Security and access control (ongoing and one-time)

Password manager (usually subscription-based)
Multi-factor authentication setup
Device encryption enabled on all devices
Encrypted backup solution
Secure Wi-Fi router

Client meeting and office setup

Private workspace with a door (home office or rented office)
Desk and comfortable chair
Scanner or scanning app workflow
Printer (only if you truly need paper)
Shredder for sensitive paper records

Business software (most are subscription-based)

Financial planning software
Customer relationship management system
Video meeting platform
Scheduling system
Document tools (word processing and spreadsheets)
Secure file-sharing portal or client vault
Electronic signature tool

Pricing guidance (high-level)

Expect software to be your main ongoing expense.
Expect security tools to be required for basic professionalism.
If you hire staff, most software pricing increases per user.
If you lease office space, your fixed costs jump quickly.

If you want a structured way to think about startup spending, use this startup cost estimating guide to avoid surprises.

Step 9: Choose Your Client Experience (What People Will Feel)

People don’t just buy planning. They buy clarity and relief.

Your startup job is to design a process that feels organized, respectful, and secure.

A simple client process often includes:

Discovery call to confirm fit
Client agreement and disclosures
Data gathering using a structured questionnaire
Plan creation
Plan review meeting
Action checklist and next-step follow-up

This is also where you decide how you will protect client information. Don’t wait until later. Build your privacy habits from day one.

Step 10: Write Your Business Plan (Even If You Don’t Want Funding)

You don’t need a formal business plan to impress anyone. You need one to keep yourself focused.

It helps you choose a niche, define services, price correctly, and plan your launch timeline.

If you need a simple structure, use this business plan guide to build something practical.

And yes, you can hire help here. A business plan writer or mentor can save you weeks of confusion.

Step 11: Set Up Funding and Banking

This business can often be funded with personal savings if you start solo and keep costs low.

But if you plan to lease office space, hire staff early, or build a bigger firm, you may need outside funding.

Your basic finances setup usually includes:

Business bank account
Simple bookkeeping system
Method to accept payment
Cash buffer for slow months

If you think you’ll need a loan, start with this business loan overview and then talk to a lender about requirements. Don’t guess.

Step 12: Handle Business Registration and Tax Setup

Now you make it real. This is where you form your legal business and handle tax basics.

If you’re starting small, many owners begin as a sole proprietor and move into a limited liability company later. That pathway depends on your goals and risk profile.

Start with a reliable overview of business registration basics from the Small Business Administration.

Then use your state’s Secretary of State site to register your entity. If you don’t know where to start, this guide on how to register a business breaks it down in plain terms.

You may also need an Employer Identification Number. The official source is the IRS EIN page.

If you’re unsure what applies, this is a smart place to talk to an accountant. That conversation can prevent expensive cleanup later.

Step 13: Know the Investment Adviser Rules Before You Offer Investment Advice

This step matters because financial planning can overlap with investment advice. If you provide advice about securities for compensation, you may be treated as an investment adviser under federal or state rules.

Don’t assume. Verify based on what you will actually do.

Start with the plain definition and examples at Investor.gov investment advisers.

If you need to register, you generally file Form ADV through the Investment Adviser Registration Depository system. The SEC explains the process here: SEC electronic filing on IARD.

Registration can be at the state level or with the SEC depending on size and facts. You’ll want to confirm which regulator applies to you, not what someone says online.

To find your state regulator, use NASAA’s regulator directory.

Step 14: Confirm Exams, Qualifications, and Background Visibility

Some roles and registrations require exams or specific qualifications. The rules vary by state and by what you do.

A common exam for investment adviser representatives is Series 65. FINRA provides the exam details on the Series 65 page.

You also need a way for clients to verify you. Many investors check the SEC’s public database. You can view firm and adviser records using Investment Adviser Public Disclosure.

Think about the flip side. Transparency helps you earn trust, but it also means you must keep your records clean and your disclosures accurate.

Step 15: Choose Your Location and Meeting Setup

Most new financial planning businesses start virtually or from a home office. That keeps overhead lower and reduces launch pressure.

If you plan to meet clients at your home, check home-occupation rules with your city or county zoning office. If you lease office space, the building department may require a Certificate of Occupancy before you open.

If you want help thinking about location choices, this resource on choosing a business location gives a structured way to decide.

Step 16: Build Your Name, Domain, and Basic Brand Identity

Your name needs to be clear, searchable, and available. Don’t choose a name you can’t get online.

Start with your business name search, then secure the domain, then lock your social handles.

If you want a step-by-step naming process, use this business name guide.

Next, decide your basic brand pieces: logo, fonts, colors, and a consistent look. If you want it done right, a designer can build a clean system fast. This guide on a corporate identity package explains what’s included.

Step 17: Create a Simple Website and Trust Signals

In this business, your website is not just marketing. It’s proof you’re real, professional, and easy to verify.

At minimum, your site should clearly explain who you help, what you offer, how you charge, and how people can contact you.

If you need a clear starting point, use this website planning overview.

You can also prepare simple print pieces like business cards. Here’s a guide on business cards so you don’t overthink it.

Step 18: Set Up Client Documents, Payment, and Record Storage

Before you work with your first client, you need a clean paperwork set. This is where many new owners feel overwhelmed.

Keep it simple. Start with the documents you must have to work professionally and legally.

Basic startup documents often include:

Client agreement
Privacy and security notice (as applicable)
Disclosure documents (as applicable)
Client questionnaire for goals and financial details
Meeting agendas and follow-up templates

You also need a secure way to accept payment, send invoices, and store documents. Don’t build a system that depends on random emails and loose files.

If you’re unsure about building this stack, you can hire help. A business attorney can draft agreements. A tech consultant can set up secure tools correctly.

Step 19: Plan Insurance and Risk Basics

Insurance needs depend on your business model, services, location, and whether you hire employees.

Some coverages may be required by law, such as workers’ compensation when you have employees. Other coverage is a risk decision, not a legal one.

Use this guide on business insurance to understand common options, then verify requirements with your state and insurer.

Step 20: Build a Simple Pre-Launch Marketing Plan

You don’t need a huge campaign. You need a plan that matches your niche and your comfort level.

Start with relationships and credibility. That usually works better than shouting into the internet.

Simple pre-launch actions include:

Tell your network what you do and who you help
Connect with related professionals (accountants, attorneys, mortgage pros)
Publish a short “how I help” page and one helpful article
Ask for referrals once your offer is clear

If your plan includes building a team or using outside experts, this guide on building a team of advisors helps you think about support roles early.

Step 21: Know the Pros, Cons, and Red Flags Before You Launch

Let’s keep this honest. Every business has trade-offs. This one does too.

The goal is not to “be positive.” The goal is to be prepared.

Pros you can plan around

You can often start solo with a small setup.
You can work virtually or locally, depending on your model.
Your service can be packaged into repeatable deliverables.

Cons you must respect

Regulatory requirements may apply if you give investment advice for compensation.
You must protect sensitive financial data.
Trust takes time to build, and you can’t rush it.

Red flags to watch for in yourself and your setup

Your service list is vague and keeps changing.
You can’t clearly explain how you charge and what clients get.
You haven’t confirmed whether investment adviser rules apply to your services.
Your data security is casual or inconsistent.
You’re avoiding paperwork because it feels boring.

That last one matters. Boring work is still work. And in this business, boring work protects people.

Step 22: Run Your Pre-Opening Checklist

This is your final check before you start working with real clients. Don’t rush it.

You’re looking for gaps that could create legal trouble, client harm, or trust issues.

Business entity is registered and active (state records match your business name)
EIN is obtained if needed
Bank account is open and ready to accept payment
Service packages and pricing are written and consistent
Client agreement and required disclosures are ready
Secure document storage and backups are working
Email, phone, scheduling, and meeting tools are set
Website is live with clear service pages
Local licensing rules are verified (city/county)
Investment adviser registration is confirmed if applicable

When you finish, do one last self-check. Can you explain your service in two sentences without rambling?

Varies by Jurisdiction: What to Verify Locally

This business has location-based rules, even if you operate online. Don’t rely on guesses.

Use the right offices and search terms so you get the real answer.

State entity registration: Secretary of State website (search “business entity registration”)
Assumed name filing: Secretary of State or county clerk (search “assumed name”)
State tax setup: Department of Revenue (search “register business tax account”)
Local business license: City or county licensing portal (search “business license apply”)
Home office rules: City or county zoning office (search “home occupation”)
Certificate of Occupancy: City building department (search “Certificate of Occupancy requirements”)
Investment adviser rules: State securities regulator (start at NASAA regulator directory)

Ask yourself a few smart questions before you call any office:

Will I meet clients in my home, in an office, or only online?
Will I hire anyone in the first 90 days?
Will I provide investment advice about securities for compensation?

If you’re feeling overwhelmed, pause. You don’t have to do everything alone. You can hire professional help for legal setup, accounting, branding, and systems.

Your job is to make sure it’s done correctly. Not to prove you can do it all by yourself.

Final Self-Check

Before you move forward, ask yourself one last time: “Are you moving toward something or running away from something?”

If you’re moving toward building a real business that helps people plan their future, start with one action today: write your first service package in plain words and send it to one non-competing owner for feedback.

101 Proven Tips For Your Financial Planning Business

In this section, you’ll find tips that cover planning, setup, and real-world decisions you’ll face as a new owner.

Some tips will feel right for you now, while others will make more sense after you land a few clients.

Consider saving this page so you can come back to it when you hit a new stage.

The fastest way to improve is to pick one tip, apply it this week, and build from there.

What to Do Before Starting

1. Decide what you will help with (budgeting, retirement, investments, insurance, taxes) before you pick a business name.

2. Write a short “who I help” statement in plain words so your services stay focused.

3. Choose one client group to start with, like young families, pre-retirees, or small business owners.

4. List three real problems your ideal clients want solved, not generic goals like “grow wealth.”

5. Make sure your scope matches your comfort level, because clients will follow your lead.

6. Decide if you will offer planning only, investment advice, insurance products, or a mix, since each path changes your requirements.

7. Research how investment advice is regulated in your state before you offer any securities recommendations for a fee.

8. If you will be an investment adviser, learn what Form ADV is and when it applies so you don’t build the wrong setup.

9. Sketch your first two service packages with clear deliverables, like “starter plan” and “retirement plan review.”

10. Pick a simple pricing structure you can explain in 30 seconds without awkward pauses.

11. Write down what you will not do, such as tax filing or legal advice, unless you are qualified.

12. Identify the minimum tools you need to start: secure email, scheduling, document storage, and a planning workflow.

13. Set a personal runway goal (months of expenses you can cover) so you don’t launch under panic pressure.

14. Talk to financial planning owners outside your area and ask what they wish they knew before they started.

15. Build a simple startup timeline with weekly goals so you don’t drift for months “getting ready.”

What Successful Financial Planning Business Owners Do

16. They run every decision through one question: “Does this help the right client trust me faster?”

17. They keep meetings structured with an agenda, so clients feel guided instead of overwhelmed.

18. They write recommendations in plain language and explain the “why” behind every step.

19. They document client conversations right away while details are still fresh.

20. They create a repeatable planning process so every client gets a consistent experience.

21. They separate facts from assumptions when building plans, especially for projections and timelines.

22. They use checklists for plan creation so nothing important gets skipped under time pressure.

23. They confirm what the client heard by asking, “What stands out to you most from today?”

24. They keep a clear policy for how they handle sensitive client information and access controls.

25. They stay cautious about giving advice outside their scope, even when a client pushes for it.

26. They keep compensation explanations simple and repeat them before the client signs anything.

27. They do not promise outcomes; they focus on actions, habits, and smart choices.

28. They use secure ways to collect documents instead of asking clients to email statements.

29. They schedule focused work time for plan building so clients don’t wait weeks for deliverables.

30. They build relationships with accountants and attorneys for referrals and better client support.

31. They practice explaining complex topics with simple examples until it becomes natural.

32. They review their own advice with a “flip side” mindset to catch blind spots and conflicts.

What to Know About the Industry (Rules, Seasons, Supply, Risks)

33. If you give investment advice about securities for compensation, you may need to register as an investment adviser at the state level or with the Securities and Exchange Commission.

34. Your state may also regulate the individuals who represent an investment adviser, so check the investment adviser representative rules where you live.

35. If you sell insurance products for commissions, insurance producer licensing typically applies and is state-regulated.

36. Compliance obligations can increase fast as your services expand, so choose your scope intentionally.

37. Many new planners underestimate how much time documentation and recordkeeping require, so plan for it early.

38. Client trust is your main risk control, and trust drops quickly when communication is vague or delayed.

39. Your busiest seasons may align with life changes, open enrollment periods, and year-end financial decisions.

40. Market volatility can increase client anxiety, so you need a steady process for handling urgent calls.

41. Not every prospect is a fit; some will want quick answers without doing the work, and that can drain your time.

42. Your advice may create conflicts of interest depending on how you are paid, so you must address them directly.

43. You should be able to explain how a client can verify your background and registration status using public databases.

44. Client data security is not optional; this business handles highly sensitive information.

45. Your reputation can spread fast in a local market, so treat every interaction like it will be repeated.

46. State rules vary, so make it a habit to verify requirements through your state regulator instead of relying on social media.

Running the Business (Operations, Staffing, SOPs)

47. Build a simple client onboarding flow before you market heavily, so you don’t scramble after the first “yes.”

48. Use a standard questionnaire to collect client goals, income, assets, debts, and insurance details.

49. Set a rule for where client documents live, so nothing ends up scattered across devices and inboxes.

50. Use multi-factor authentication on every account that touches client information.

51. Keep your calendar system and reminders tight, because missed follow-ups feel like broken trust.

52. Create a plan template you can reuse, but leave room for client-specific decisions and trade-offs.

53. Use a secure e-signature system so agreements are easy to sign and store.

54. Decide how you will accept payment, when payment is due, and what happens if a payment is late.

55. Write a short meeting note after every session and save it in the client’s file.

56. Block time weekly to update plans, because life changes quickly and stale plans create confusion.

57. Create a quality-control step before you deliver a plan, like checking assumptions and math twice.

58. Keep a clear boundary for “quick questions,” so your schedule doesn’t get consumed by free consulting.

59. If you plan to hire help, start with admin support first because it protects your time and focus.

60. Write simple standard operating procedures for repeat tasks like scheduling, document collection, and follow-ups.

61. Protect your deep work time by batching calls and meetings instead of scattering them all day.

Marketing (Local, Digital, Offers, Community)

62. Start with a clear niche message, because “I help everyone” rarely creates confident referrals.

63. Build one strong signature offer, like a starter plan, so people know how to begin with you.

64. Use educational content as your main marketing angle, because finances decisions often start with confusion.

65. Host a simple local workshop at a library or community space to build credibility without hype.

66. Network with accountants, attorneys, and real estate professionals who share the same client types.

67. Create a one-minute explanation of your services and practice it until it feels natural.

68. Make your website answer basic trust questions: who you help, what you do, how you charge, and how to contact you.

69. Use a scheduling link to reduce back-and-forth emails and speed up booking.

70. Ask for referrals only after delivering a clear win, like finishing a plan or completing a review.

71. Keep your public messaging consistent with your actual scope, so expectations match reality.

72. Track which marketing channel brings the most qualified prospects so you don’t spread yourself thin.

73. Build a short email follow-up sequence for new inquiries so prospects feel guided, not chased.

74. Show your process, not your personality, because clients want structure and reliability.

75. Avoid “hot takes” on the market in your marketing, because panic messaging attracts panic clients.

Dealing with Customers (Trust, Education, Retention)

76. Start every client relationship by clarifying goals and priorities, not by jumping into products.

77. Confirm the client’s real concern by asking, “What keeps you up at night about money?”

78. Teach clients how to make decisions, not just what decision to make.

79. Give clients a short action list after meetings so they know exactly what to do next.

80. Use plain language when explaining risk, because confused clients rarely take action.

81. When clients feel ashamed about past choices, keep your tone calm and focused on solutions.

82. Set expectations for response times so clients don’t assume silence means trouble.

83. If a client is overwhelmed, slow down and handle one priority at a time.

84. Keep client education visual when possible, using simple charts or summaries they can understand quickly.

85. Document every recommendation and the reason behind it, because memory fades and questions return later.

86. Review progress regularly, because plans only work when actions happen consistently.

87. Know when to refer out to accountants or attorneys, because good boundaries protect clients and you.

Customer Service (Policies, Guarantees, Feedback)

88. Create a written cancellation and rescheduling policy so your calendar stays fair and predictable.

89. Set a policy for refunds that is clear and reasonable, and share it before a client pays.

90. Build a simple complaint-handling process so problems don’t turn into reputation damage.

91. Follow up after big plan meetings within 24 to 48 hours to reinforce clarity and next steps.

92. Ask for feedback after deliverables using one question: “What felt unclear or harder than expected?”

93. Keep client notes organized so any future follow-up sounds informed, not generic.

94. Track recurring client questions and turn them into improvements to your process and templates.

Staying Informed (Trends, Sources, Cadence)

95. Check updates from your state securities regulator on a set schedule, because rules can change.

96. Read trusted industry sources weekly, not daily, so you stay informed without chasing noise.

97. Use continuing education to strengthen your weak areas, not just to collect credentials.

98. Save major updates in a reference folder so you can review them before making service changes.

Adapting to Change (Seasonality, Shocks, Competition, Tech)

99. When the market gets volatile, rely on your planning process and communication cadence instead of reacting emotionally.

100. If competitors lower prices, focus on clarity, service structure, and client experience rather than racing to the bottom.

101. Re-check your tools yearly and upgrade only when a change solves a real problem for clients or improves security.

If you want this business to feel steady, keep it simple at the start.

Pick one tip to apply today, and let the next step earn its place.

FAQs

Question: Do I need to register as an investment adviser to start a financial planning business?

Answer: If you give advice about securities for compensation, you may need to register as an investment adviser at the state level or with the Securities and Exchange Commission.

Even “planning only” can cross into investment advice, so confirm your exact service scope before you launch.

Question: How do I know if I register with my state or with the Securities and Exchange Commission?

Answer: Registration level depends on facts like where you operate and the size of your advisory business.

Start by checking your state securities regulator and the Securities and Exchange Commission registration guidance for investment advisers.

Question: What is Form ADV, and when do I need it?

Answer: Form ADV is a required filing for registered investment advisers and it describes your business, services, and fees.

You file it through the Investment Adviser Registration Depository system when registering and keep it updated after that.

Question: Do I need the Series 65 exam to open my business?

Answer: Many states require an exam such as Series 65 for investment adviser representatives, but the rules vary by state.

Verify requirements with your state securities regulator before you advertise investment advice services.

Question: Can I start as “planning only” and add investments later?

Answer: Yes, many owners start with planning packages and expand later as they add credentials and registrations.

Be careful that your planning recommendations do not drift into regulated investment advice before you are properly set up.

Question: What business structure should I choose for a financial planning business?

Answer: Many owners start as a sole proprietor or limited liability company, depending on risk, taxes, and growth plans.

Your state’s business registration office and a qualified accountant can help you choose the right setup for your situation.

Question: Do I need an Employer Identification Number if I’m starting solo?

Answer: Not every solo owner needs one right away, but you may need it for banking, hiring, or certain tax situations.

The Internal Revenue Service is the official place to confirm when an Employer Identification Number applies.

Question: What licenses or permits do I need to start?

Answer: Requirements vary by state, county, and city, and depend on your location and activities.

Common items to check are a local business license, zoning rules for a home office, and building approvals for leased space.

Question: Do I need a Certificate of Occupancy for an office?

Answer: Many cities require building approval before you open a commercial office space, and the specific rules vary.

Check with your local building department before you sign a lease or schedule client visits.

Question: What insurance should I set up before I take clients?

Answer: Some insurance is legally required only in certain cases, such as workers’ compensation if you have employees.

Many owners also consider professional liability and cyber coverage because they handle sensitive financial information.

Question: What equipment and software do I need to start?

Answer: You need a reliable computer, secure internet, multi-factor authentication, and encrypted storage or backups.

Most owners also use planning software, a customer relationship management system, secure file sharing, and electronic signatures.

Question: How do I set pricing when I’m brand new?

Answer: Start with a pricing model you can explain clearly, such as hourly, flat fee, or subscription access.

Keep the scope tight so you do not underprice a plan that requires heavy research and follow-up.

Question: What should my first two service packages be?

Answer: Many new owners start with a “starter financial plan” and a focused offer like a retirement plan review.

Each package should list exact deliverables, meeting count, and what is not included.

Question: What does a simple client onboarding workflow look like?

Answer: A simple flow is discovery call, signed agreement, data collection, plan build, plan review, and action checklist.

Keep it consistent so clients feel guided and you do not rebuild your process for every person.

Question: What client documents should I have ready before launch?

Answer: At minimum, you need a client agreement, a description of services, and a clear fee and payment policy.

If you are registered as an investment adviser, you may also need required disclosures and brochure materials.

Question: Do I need special rules for protecting client data?

Answer: Many financial planning firms must follow federal privacy and data security requirements based on what they do and who regulates them.

You may need a written information security program, access controls, and an incident response plan.

Question: How do I market my business without making risky promises?

Answer: Focus your marketing on your process, your niche, and the decisions you help clients make.

Avoid language that suggests guaranteed returns or predictable outcomes.

Question: What should I track each month to stay in control?

Answer: Track leads, discovery calls booked, close rate, revenue collected, and time spent per plan.

This tells you if your offers, pricing, and workflow are working or quietly draining you.

Question: How do I manage cash flow when income is uneven?

Answer: Build a cash buffer and keep personal spending separate from business spending.

Subscription pricing or staged payments can help smooth out income across the year.

Question: When should I hire help, and what role first?

Answer: Many owners hire admin support first because it protects the owner’s focus and client time.

Hire only when revenue is steady enough to carry the added monthly cost.

Question: What are common errors that hurt new financial planning businesses?

Answer: The big ones are unclear service scope, confusing fees, weak documentation, and ignoring registration requirements.

Another common problem is poor data security habits, which can create serious risk fast.

Question: How do I handle clients who want constant “quick questions”?

Answer: Set response-time expectations and define what counts as included support in your agreement.

If you do not set boundaries early, your calendar will fill up with unpaid work.

Sources:

Investor.gov: Financial Planners, Investment Advisers
SEC: Register Investment Adviser, Adviser Public Disclosure, Regulation S-P Privacy
FINRA: Series 65 Exam
NASAA: Contact Your Regulator
IRS: Employer Identification Number
SBA: Register Your Business, Apply Licenses Permits
BLS: Personal Financial Advisors
FTC: Safeguards Rule

How to Start a Financial Planning Business From Scratch