{"type":"practice_guide","title":"Hiring Your First Advisor or Operations Hire: Roles, Licensing and Structure","lead":"As of Oct 20, 2026, Kitces Research data published Aug 25, 2025 show a median revenue of $182,500 for unsupported solo senior advisors against more than $500,000 for supported solos, and a client service associate costs about $70,000 a year including payroll taxes and benefits.","as_of":"2026-10-20","facts":{"summary":"What each first hire does, what a support hire changes, and the exams, registrations and disclosures a new advisor needs.","key_facts":["Median revenue is $182,500 for unsupported solo senior advisors and $500,000 or more for supported solos.","A client service associate costs around $70,000 a year, a $58,500 salary plus payroll taxes and benefits.","A supervised person who has more than five natural-person clients, who make up more than 10% of their clients, is an investment adviser representative under the SEC's definition.","The Series 65 is normally required before licensing as an investment adviser representative; most states accept certain designations in its place, and states vary."]},"sources":[{"url":"https://www.kitces.com/blog/financial-advisor-technology-wellbeing-research-hiring-efficiency-automation/","checked":"2026-10-20","label":"Kitces.com, Mark Tenenbaum: Why teams (not tech) consistently reduce administrative burdens, make advisors happier, and boost revenue"},{"url":"https://www.law.cornell.edu/cfr/text/17/275.203A-3","checked":"2026-10-20","label":"Legal Information Institute, Cornell Law School: 17 CFR 275.203A-3, definitions (investment adviser representative, place of business)"},{"url":"https://www.nasaa.org/exams/exam-faqs/","checked":"2026-10-20","label":"NASAA: Exam FAQs (Series 65 and Series 66)"},{"url":"https://www.nasaa.org/contact-your-regulator/","checked":"2026-10-20","label":"NASAA: Contact Your Regulator"},{"url":"https://www.law.cornell.edu/cfr/text/17/275.206(4)-7","checked":"2026-10-20","label":"Legal Information Institute, Cornell Law School: 17 CFR 275.206(4)-7, compliance procedures and practices"},{"url":"https://www.kitces.com/blog/financial-advisor-productivity-revenue-per-advisor-experience-expertise-team-leverage/","checked":"2026-10-20","label":"Kitces.com, Michael Kitces: What (really) makes advisors more productive, and the third Kitces Research study on advisor productivity"},{"url":"https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee","checked":"2026-10-20","label":"Internal Revenue Service: Independent contractor (self-employed) or employee?"},{"url":"https://www.law.cornell.edu/uscode/text/15/80b-2","checked":"2026-10-20","label":"Legal Information Institute, Cornell Law School: 15 U.S.C. 80b-2 (Investment Advisers Act Section 202), definitions"},{"url":"https://www.law.cornell.edu/uscode/text/15/80b-3a","checked":"2026-10-20","label":"Legal Information Institute, Cornell Law School: 15 U.S.C. 80b-3a (Investment Advisers Act Section 203A), state and Federal responsibilities"},{"url":"https://www.sec.gov/files/formadv-part2.pdf","checked":"2026-10-20","label":"U.S. Securities and Exchange Commission: Form ADV Part 2: Uniform Requirements for the Investment Adviser Brochure and Brochure Supplements (SEC 1707)"},{"url":"https://www.law.cornell.edu/cfr/text/17/275.204-3","checked":"2026-10-20","label":"Legal Information Institute, Cornell Law School: 17 CFR 275.204-3, delivery of brochures and brochure supplements"},{"url":"https://www.law.cornell.edu/cfr/text/17/275.204A-1","checked":"2026-10-20","label":"Legal Information Institute, Cornell Law School: 17 CFR 275.204A-1, investment adviser codes of ethics"},{"url":"https://www.law.cornell.edu/cfr/text/17/275.204-1","checked":"2026-10-20","label":"Legal Information Institute, Cornell Law School: 17 CFR 275.204-1, amendments to Form ADV"},{"url":"https://www.cerulli.com/press-releases/advisor-retirements-underscore-need-for-stronger-rookie-development","checked":"2026-10-20","label":"Cerulli Associates: Advisor retirements underscore need for stronger rookie development (press release)"},{"url":"https://pressroom.aboutschwab.com/press-releases/press-release/2025/Schwabs-2025-Independent-Advisor-Outlook-Study-Trust-Talent-and-Technology-Shaping-the-Next-Era-of-Independent-Advice/default.aspx","checked":"2026-10-20","label":"Schwab Advisor Services: Schwab's 2025 Independent Advisor Outlook Study (press release)"}],"related":[{"title":"Advisor Capacity Calculator: How Many Households Can You Serve?","url":"https://advisoriq.com/practice/calculators/advisor-capacity/"},{"title":"Advisor Fee Revenue Calculator: AUM Fee Schedule vs Flat Fee","url":"https://advisoriq.com/practice/calculators/fee-revenue/"},{"title":"How to Start an RIA: SEC vs State Registration","url":"https://advisoriq.com/practice/guides/how-to-start-an-ria-sec-vs-state-registration/"},{"title":"How to Price Advisory Services: Fee Schedules and Pricing Models","url":"https://advisoriq.com/practice/guides/advisor-fee-schedules-and-pricing-models/"},{"title":"How to Build an RIA Compliance Program: Rule 206(4)-7, CCO and Annual Review","url":"https://advisoriq.com/practice/guides/compliance-program-for-a-new-ria/"},{"title":"Legal Essentials for an Independent RIA: Entity, Advisory Agreement and Insurance","url":"https://advisoriq.com/practice/guides/legal-essentials-for-an-independent-ria/"},{"title":"How to Choose an RIA Custodian: What Custodians Do and What to Ask","url":"https://advisoriq.com/practice/guides/choosing-an-ria-custodian/"},{"title":"Financial Advisor Technology Stack: What You Need, How It Connects and How to Budget","url":"https://advisoriq.com/practice/guides/advisor-technology-stack/"},{"title":"RIA Cybersecurity: Regulation S-P, Regulation S-ID and Practical Controls","url":"https://advisoriq.com/practice/guides/ria-cybersecurity-and-client-data-protection/"},{"title":"Marketing for Financial Advisors: How to Attract Clients","url":"https://advisoriq.com/practice/guides/marketing-for-financial-advisors/"},{"title":"SEC Marketing Rule for Advisors: Testimonials, Ratings and Performance","url":"https://advisoriq.com/practice/guides/sec-marketing-rule-for-advisors/"}],"notes":["Educational, not legal, tax or investment advice.","Practice management content is not eligible for CFP Board CE. CFP Board plans to allow up to five hours of it per cycle once its Q4 2027 changes take effect."],"url":"https://advisoriq.com/practice/guides/hiring-first-advisor-or-operations-hire/","citation":"AdvisorIQ, as of 2026-10-20. https://advisoriq.com/practice/guides/hiring-first-advisor-or-operations-hire/","license":"https://advisoriq.com/license/","publisher":"AdvisorIQ, independent education for financial advisors","disclaimer":"Summaries of rules set by designation bodies and regulators, which have the final word."}