Business Start-up Checklist. Going Independent

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1 Business Start-up Checklist Going Independent 555 East Main Street, Chester, NJ Phone This document is designed as a guide to assist you in your search to reach your full potential as a financial advisor. It is intended as a worksheet only. It is not, by any means, an inclusive list of all the questions or issues that you might need to investigate regarding your specific book of business or client base. This document was created by Diamond Consultants as a courtesy to its candidates and clients and is not to be duplicated without express permission. Exclusive property of Diamond Consultants and its clients. All rights reserved Diamond Consultants

2 Business Start-up Checklist X Date Considerations Considering Independence Financials Consider the benefits of becoming an RIA Consider your business capital needs Making the Commitment Business Plan Determine a target date for the official opening of your business Begin writing your business plan Transition Issues Determine how and when you will leave your firm Research the terms of any non-compete agreement you may have with your current firm Develop an operations guide governing account transfers, opening, and history Office Set-up Begin looking for office space Custodian Begin looking for custodian /service agent Insurance Determine the need for and costs of errors and omissions insurance. If you have employees, make sure you have all federal and/or state mandated insurance Payroll Obtain your employer identification number (EIN) and work with your accountant to determine needs for state, city, and local tax purposes Determine, with your accountant, how payroll will be handled Benefits Discuss with your accountant the types of benefits you want to provide for yourself and any current or future employees Defining Your Business Entity Registration Prepare Form ADV, with professional help File form ADV with the SEC, or a comparable form with the state, (Depending on the state, registration may take up to three months or more) Compliance Develop compliance policies and procedures to ensure that your firm is in compliance with the applicable SEC or state requirements. You could consider ordering compliance materials from a registration and compliance consultant.

3 X Date Considerations Preparing Your Organization Custodian Talk to a custodian/service agent about the services they can provide and the process involved in the asset transfer. Begin preparing for the transfer of assets Determine your investment selection Office Set-up Lease office space Order computer and business software peripherals Order office equipment including telephone, answering machine, fax machine, and copy machine Order and set-up telephone and internet provider services Purchase or lease office furniture Install computer, software peripherals, and office equipment Marketing Begin web site development Order design of business card, letterhead, envelope, and client announcement Prepare and schedule press release and or advertisement announcing the opening of your new business Organize and plan an opening reception for your clients Staffing Start search for assistant, if necessary Hire assistant to start on day one Work with your attorney or HR consultant to ensure you are compliant with all federal and state wage and hours regulations/laws Compliance Obtain compliance reference materials to keep updated on the latest compliance requirements Opening Your Business Custodian Start transfer of assets to custodian Marketing Launch website Begin developing marketing plan and create marketing campaigns to promote your new business

4 HR Checklist for Starting Your Own Firm X Date Considerations Payroll Benefits HR Regulations Set up your payroll with the help of an accountant, bookkeeper, or banker Manage your payroll including collecting federal, state, Social Security, and applicable local taxes Meet state mandates. Ensure your insurance agent or payroll provider obtains the coverage required by your local government which may include: Unemployment compensation for eligible workers who are unemployed through no fault of their own State disability insurance, partial wage replacement for disabling, non-occupational illnesses and injuries Workers compensation coverage for medical expenses and income replacement for time lost from work for employees with workrelated injuries or illnesses Find an appropriate provider, with the help of an insurance agent or your local chamber of commerce Implement your standard benefits; working with your insurance agent to obtain basic health care, life insurance, short-term and long-term disability, dental, vision, and long-term care Work with your attorney or HR consultant to help ensure you comply with all federal and state regulations regarding: Wage and hour laws Pay procedures and pay periods Exempt and non-exempt employees Regular, overtime, and bonus pay Work hours, meals, and break periods Timekeeping for administrative, IT, or operational staff Garnishments Travel time and policies

5 X Date Considerations Employee Files 2 weeks prior to launch Set up employee files; archive the following for each team member: Employee application Form I-9 which documents employment eligibility status. Visit for Form I-9 with instructions. This information needs to be kept separate from your human resources file. Copy of employee identification used to verify team member s employment eligibility status, e.g. passport or driver s license) W-4 tax withholding statement which you can obtain from your payroll provider Emergency contact information including name, address, and phone numbers