Launching a Registered Investment Advisor (RIA) firm can be one of the most rewarding steps an advisor can take in their career. It offers the chance to serve clients with greater independence, build a business around your values, and shape the future of your practice. But for all the excitement, the process is rarely as straightforward as it looks from the outside. From navigating the regulatory maze to setting up the right business infrastructure, there are challenges that many advisors underestimate until they are in the middle of them.
At SimplyRIA™, we know this journey firsthand because we have walked it ourselves. Our founder began building RIAs in 2010, eventually launching three unique firms from the ground up. That experience came with many unforeseen obstacles, complex regulations, unexpected operational hurdles, and the weight of creating something new, but it also proved that independence is worth the effort. Those lessons shaped our mission: to help independent financial advisors focus on building the firm they envision without being consumed by compliance demands. We keep it simple, which is why we are SimplyRIA™, built for advisors, by advisors.
Looking back, there are several lessons we wish we had known before making the leap. These insights are not meant to discourage, but to provide a clear-eyed view of what independence really requires. By sharing them, our goal is to help you avoid common pitfalls, anticipate the work ahead, and move forward with confidence. What follows are five key insights to help you prepare for the realities of launching and running your own RIA.
The Registration Process Is More Complex Than It Looks
One of the first surprises many advisors encounter is just how detailed and time-consuming the registration process can be. Filing Form ADV Parts 1 and 2 is only the beginning. Each state regulator may have its own requirements, from minimum net capital and financial statements to surety bonds or additional disclosures. Policies and procedures manuals must be customized to cover areas such as cybersecurity, business continuity, and a code of ethics. What appears at first glance to be “just forms” quickly expands into a series of steps that require significant planning, documentation, careful review and strategic implementation.
The challenge is not only the volume of work but also the uncertainty of whether everything has been done properly. Even small oversights, such as inconsistent ownership details or missing supervisory procedures, can result in regulators requesting revisions or delaying approval. Many advisors who take on this process alone are surprised at how much time it pulls away from revenue genertating activities. Most did not start their careers intending to become experts in regulatory filings, and that’s where having the right guidance makes all the difference. With proper preparation and support, you can navigate registration more smoothly and begin focusing on the bigger picture of building your firm.
Preparing Your First Audit
Many new RIA owners believe compliance is something to be addressed during registration and then set aside. In reality, compliance is a continuous responsibility that evolves as your firm grows. Regulators expect an ongoing system of supervision, testing, and documentation that demonstrates your firm is staying aligned with the rules at all times.Additionally, many states have become increasingly proactive, often conducting an initial audit within the first 12 months of registration. Here are a few of the key areas that often surprise first-time RIA owners:
- Annual Reviews and Updates
Firms are required to conduct an annual compliance review and document the results. This isn’t just a formality — regulators expect clear evidence that your firm is testing its procedures, ensuring they align with your actual business activities, and making necessary updates when gaps are identified. - Regulatory Filings
Form ADV must be updated each year, and material changes need to be reported promptly. Advisors who miss these deadlines may face unnecessary penalties or increased regulatory scrutiny. - Policies and Procedures Maintenance
Written compliance manuals must be kept current with evolving business practices. As new services, custodians, or technology platforms are added, procedures need to be updated to reflect those changes. - Advertising and Marketing Oversight
With the SEC’s marketing rule, even websites, social media posts, and performance discussions must be monitored to ensure compliance. Many advisors underestimate how much oversight this requires. - Cybersecurity and Data Protection
Regulators increasingly expect firms to have documented policies for protecting client information. Cybersecurity is no longer optional—it is considered a key compliance area.
Understanding that compliance is a living process rather than a one-time hurdle is critical. Advisors who plan ahead for these responsibilities will be in a stronger position to maintain good standing with regulators and avoid the stress of last-minute catch-up.
Building Infrastructure Takes Longer Than You Expect
One of the most underestimated aspects of launching an RIA is building the infrastructure to support your firm. Many advisors assume they can figure out their systems and workflows after registration, but the reality is that operations become the backbone of your business from day one. Each decision you make about how your firm is structured has long-term implications for efficiency, compliance oversight, client experience, and overall scalability. What feels like a simple “setup task” often turns into a months-long process of planning, testing, and refining.
Technology in particular plays a central role. In a recent analysis, 67% of advisors reported using integrated technology stacks rather than piecing together disconnected tools (Kitces, 2024, RIA Software and Performance Reporting Tools for 2025). This marks a sharp increase from just 48% in 2022, reflecting how quickly the industry is recognizing the risks of fragmented systems. Building an integrated foundation is no longer optional if you want to operate efficiently and competitively. For most RIAs, that means addressing core areas like:
| Infrastructure Area | Why It Matters |
| Custodian relationships | Choosing where client assets are held and ensuring operational alignment with your service model. |
| CRM system | Managing client data, communications, and workflows in one place. |
| Portfolio management and reporting | Tracking performance, creating reports, and integrating with custodians. |
| Billing and fee processing | Establishing compliant systems for invoicing and revenue collection. |
| Compliance oversight tools | Automating parts of testing, recordkeeping, and monitoring. |
| Cybersecurity and data protection | Safeguarding sensitive client information in line with regulatory expectations. |
| Marketing and communications | Building a professional online presence, managing campaigns, and maintaining consistent branding. |
Integrations across these systems rarely work seamlessly on the first attempt, and advisors often underestimate the testing and training required. The takeaway is clear: investing time up front to design a scalable infrastructure helps you avoid costly rework later, keeps your firm aligned with compliance requirements, and ensures clients experience professionalism from the very first interaction.
Independence Is More Work But Also More Rewarding
Many advisors imagine independence as simply “removing the middleman,” but the reality is that running your own RIA means taking on new responsibilities. You become not only an advisor, but also a business owner responsible for strategy, operations, and compliance. While this requires more effort than many anticipate, it also creates opportunities that are difficult to find in other environments.
- Greater Responsibility
Running your own firm means overseeing compliance, operations, client service, and business development. This can feel overwhelming at first, but it also gives you full control over how your business is structured. - Full Ownership of Client Relationships
Instead of operating under someone else’s brand or platform, you build direct, lasting relationships with your clients. This ownership strengthens trust and allows you to design services that truly reflect your philosophy. - Flexibility in Business Design
Independence gives you the ability to choose your custodians, technology, fee models, and marketing approach. The decisions are yours, and so are the opportunities to tailor them to your vision. - Financial Alignment
While overhead and startup costs exist, the revenue you generate flows directly to your business. This transparency helps advisors see more clearly how their efforts translate into firm growth. - Personal Fulfillment
Building something of your own, with your name and values attached, can be deeply rewarding. The challenges are real, but so is the sense of pride and accomplishment that comes with independence.
For many advisors, these benefits outweigh the additional workload. Independence is not about avoiding responsibility—it is about embracing it in a way that builds both professional freedom and personal satisfaction.
You Do Not Have to Do It Alone
Perhaps the most important lesson of all is realizing that independence does not mean isolation. Many advisors start out believing they have to shoulder every responsibility themselves, from compliance to marketing to technology decisions, in order to truly “own” their firm. In reality, the most successful RIA founders are those who know when to seek help. Surrounding yourself with the right partners and resources frees you to focus on client relationships and strategic growth instead of being consumed by administrative tasks. Independence is about making choices, and choosing support is often the wisest path forward.
At SimplyRIA™, we learned early on that no firm succeeds in a vacuum. Building multiple RIAs from the ground up showed us that progress comes faster, and with fewer missteps, when you have the right systems and guidance in place. That experience is why we believe in combining technical compliance expertise with the perspective of someone who has navigated the same journey. With the right partner, you gain both confidence and efficiency, turning operational challenges into opportunities to build the firm you envisioned when you chose independence.
Bringing the Lessons Together
Starting your own RIA is both an exciting and demanding journey. Along the way, many advisors discover that the challenges they underestimated, quickly become the areas that consume the most time and energy. Yet the rewards of independence, including greater control, deeper client relationships, and the satisfaction of building something lasting, remain worth the effort when approached with the right preparation. Each of the lessons shared here underscores a central truth: independence is not about avoiding complexity, but about managing it wisely.
The good news is that you do not have to take this journey alone. By learning from those who have gone before you and partnering with resources that simplify the complex, you can launch and grow your firm with greater clarity and confidence. If you are considering starting your own RIA or re-evaluating how your current firm operates, now is the time to take the next step. Schedule a consultation with SimplyRIA™ to explore how we can help you simplify registration, streamline compliance, and position your firm for growth.
