Naming a new RIA prcatice

by **geostott** » Sat Jan 22, 2011 6:54 pm

This may seem like a small detail to many but I am about to file as an RIA and I'm wonder if you have an opinion about the name of the business. Do you think it would better to give it a name that has your name tied to it, Like "Last Name Financial Services" or a generic name, that may give the impression that your business is bigger than just one person?
Thanks

by **Tad Borek** » Sun Jan 23, 2011 8:22 pm

For a one man band I really don't think it matters. Thinking long-term, the name construct you describe (which incidentally is what I use) isn't ideal if you plan to add partners to the business or (really long-term) sell the business in a form where it can be continued without you but as basically the same business. Unless you have a plan like that already mapped out I wouldn't sweat it much, easy to change down the line if needed.

-Tad

by **the observer** » Sun Jan 23, 2011 8:38 pm

geostott

Depending on where you are in America and what services you want to offer there may be other considerations. The biggest one is if you are planning to keep or obtain a life agent license to offer insurance planning. In many States if you are independent RIA and want to offer insurance advice through the firm, you will need to create an additional dba for this because of insurance laws.

Example from CA. The RIA may be Cornerstone Financial Services, Inc. But if your company has an agency license, you would need to file a dba titled Cornerstone Financial "and Insurance" Services. Now, if you separate these out as a sole practitioner and continue to do business under an individual license, you'd need to update your ADV Form Parts I & II. with words to the effect, Cornerstone Financial Services does not offer any advice in insurance and is not licensed as an insurance agency. Separate and distinct from etc. etc.... then... (your name) offers insurance products under an individual life agent license number in CA (or wherever)..... etc. etc.

Also, some States prohibit the use of "State", "Federal", "Trust" or the name of your State and similar words that could be misconstrued in a company name. They normally have a list in the corporations code or similar.

Just a thought.

by **geostott** » Mon Jan 24, 2011 11:15 am

Thanks for the replies. I already have a separate LLC for my insurance biz = P&C, Life, Health. I've been in the business for 30 years. Btween 1996 and 2005 , I was a variable annuity wholesaler in New Jersey covering independent planners with ING, Pacific Life and finally AXA Equitable. When I left wholesaling I hooked up with Securities America as an independent and registered the name "Life Goal Advisors", had a logo created, website, etc. . Not long after I switched gears and opened an Allstate Insurance agency. Things were going well until a divorce forced a sale of the business in August of this year. I've now opened an independent agency and, after 4 months of investigating, I've decided to go the RIA way for the planning and investment. I'm thinking about using the Life Goal Advisors name again. Any opinions on the name? Is it descriptive enough? SHould I call it Life Goal Financial Advisors?
Thanks for the input!

by **Pam Gilchrist** » Tue Feb 08, 2011 6:51 pm

This is one of the biggest and most important decisions that you will make.
It is important to consider current brand equity in both your personal name and LLC -- as well as market potential for a new name. I work with financial services firms on Brand Identity, launching new firms and marketing -- and have done extensive research on this issue. One other aspect to consider is your tagline -- which can/should serve as a descriptor for your business/service lines as well as solidify your brand promise. If I can be of help, let me know.