{"type":"practice_guide","title":"How to Start an RIA: SEC vs State Registration","lead":"As of Oct 20, 2026, an adviser with $100 million or more in assets under management generally registers with the SEC and a smaller adviser generally registers with its state, and the SEC's IARD fee schedule lists an initial filing fee of $40, $150 or $225 depending on assets.","as_of":"2026-10-20","facts":{"summary":"The assets thresholds that decide SEC or state registration, the exceptions, and the filing steps from IARD access to state notice filings.","key_facts":["A state-regulated adviser generally cannot register with the SEC unless it has at least $25 million in assets under management or advises a registered fund; advisers between $25 million and $100 million that must register with, and be examined by, their home state generally may not register with the SEC.","An adviser may, but need not, register with the SEC at $100 million to under $110 million, and need not withdraw until assets fall below $90 million.","The SEC must grant registration or institute proceedings within 45 days of the application.","A state may not require registration of an adviser with no place of business in the state and fewer than 6 clients who live there in the preceding 12 months."]},"sources":[{"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.law.cornell.edu/cfr/text/17/275.203A-1","checked":"2026-10-20","label":"Legal Information Institute, Cornell Law School: 17 CFR 275.203A-1, eligibility for SEC registration; switching to or from SEC registration"},{"url":"https://www.law.cornell.edu/uscode/text/15/80b-3","checked":"2026-10-20","label":"Legal Information Institute, Cornell Law School: 15 U.S.C. 80b-3 (Investment Advisers Act Section 203), registration of investment advisers"},{"url":"https://www.law.cornell.edu/uscode/text/15/80b-18a","checked":"2026-10-20","label":"Legal Information Institute, Cornell Law School: 15 U.S.C. 80b-18a (Investment Advisers Act Section 222), State regulation of investment advisers"},{"url":"https://www.law.cornell.edu/cfr/text/17/275.203A-2","checked":"2026-10-20","label":"Legal Information Institute, Cornell Law School: 17 CFR 275.203A-2, exemptions from the prohibition on SEC registration"},{"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.sec.gov/files/risk-alert-newly-registered-ias-032723.pdf","checked":"2026-10-20","label":"U.S. Securities and Exchange Commission, Division of Examinations: Risk Alert: Observations from Examinations of Newly-Registered Advisers"},{"url":"https://iard.com/how-access-iard","checked":"2026-10-20","label":"IARD (operated by FINRA): How to Access IARD"},{"url":"https://www.sec.gov/files/formadv.pdf","checked":"2026-10-20","label":"U.S. Securities and Exchange Commission: Form ADV (Parts 1A, 1B, 2 and 3)"},{"url":"https://www.law.cornell.edu/cfr/text/17/275.204-5","checked":"2026-10-20","label":"Legal Information Institute, Cornell Law School: 17 CFR 275.204-5, delivery of Form CRS"},{"url":"https://www.sec.gov/about/divisions-offices/division-investment-management/electronic-filing-investment-advisers-iard/frequently-asked-questions-form-adv-iard","checked":"2026-10-20","label":"U.S. Securities and Exchange Commission: Frequently asked questions about Form ADV and IARD"},{"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/17/275.204-3","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/17/275.204-1","checked":"2026-10-20","label":"Legal Information Institute, Cornell Law School: 17 CFR 275.204-1, amendments to Form ADV"},{"url":"https://www.law.cornell.edu/cfr/text/17/275.204-2","checked":"2026-10-20","label":"Legal Information Institute, Cornell Law School: 17 CFR 275.204-2, books and records to be maintained by investment advisers"}],"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 Price Advisory Services: Fee Schedules and Pricing Models","url":"https://advisoriq.com/practice/guides/advisor-fee-schedules-and-pricing-models/"},{"title":"Hiring Your First Advisor or Operations Hire: Roles, Licensing and Structure","url":"https://advisoriq.com/practice/guides/hiring-first-advisor-or-operations-hire/"},{"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/how-to-start-an-ria-sec-vs-state-registration/","citation":"AdvisorIQ, as of 2026-10-20. https://advisoriq.com/practice/guides/how-to-start-an-ria-sec-vs-state-registration/","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."}