Not long ago I started my own RIA and things have been going fairly well. I had a couple questions I was hoping some others who may have their own RIA could answer.
- My LLC is set up in Delaware, but I've come across regulations called the "Foreign LLC Requirements" which basically say if you conduct business in a state other than your LLC registered state you need to file as a foreign LLC. This seems kind of odd to me since as an IA I've already paid filing fees in these states to conduct IA business, but now I also need to register my LLC in the state too? Anyone have info on that?
- On item 9 for Form ADV I put down I didn't have custody of client assets in their custodial accounts. Mainly because I can't write checks in their names, move funds to other accounts or bank accounts, essentially I can only ask the custodian to deduct fees to meet whatever is owed to my firm. Apparently though the mere fact I have access to client accounts I have custody in the eyes of my state regulator. I find that odd because I know plenty of firms put "No" on item 9 even though that's exactly what they're doing too. Anyone have info on that?