How Much Does It Cost to Start a Financial Planning Practice?
Last updated: March 2026
National Average
Low
$20,000
Medium
$55,000
High
$130,000
Start a fee-only or commission-based financial planning practice providing investment advice, retirement planning, and wealth management.
Time to Launch
3-6 months
Profit Margins
30-55%
Break-Even Timeline
12-36 months
Interactive Cost Calculator
Select a state below to see state-adjusted costs.
Startup Cost Calculator
Financial Planning Practice in Nationally
Budget:
$3,000
$5,000
$4,000
$3,000
$3,000
$1,000
$5,000
$6,000
$25,000
Options
Employees:
One-Time Costs
$55,000
Monthly Costs
$0
First Year Total
$55,000
Startup Costs by State
| State | Low | Medium | High | LLC Fee | Sales Tax |
|---|---|---|---|---|---|
| Mississippi | $17,000 | $46,750 | $110,500 | $50 | 7.0% |
| West Virginia | $17,200 | $47,300 | $111,800 | $100 | 6.0% |
| Alabama | $17,600 | $48,400 | $114,400 | $200 | 4.0% |
| Arkansas | $17,800 | $48,950 | $115,700 | $45 | 6.5% |
| Oklahoma | $17,800 | $48,950 | $115,700 | $100 | 4.5% |
| Kansas | $18,000 | $49,500 | $117,000 | $160 | 6.5% |
| Indiana | $18,200 | $50,050 | $118,300 | $95 | 7.0% |
| Iowa | $18,200 | $50,050 | $118,300 | $50 | 6.0% |
| Michigan | $18,200 | $50,050 | $118,300 | $50 | 6.0% |
| Nebraska | $18,200 | $50,050 | $118,300 | $105 | 5.5% |
| Ohio | $18,200 | $50,050 | $118,300 | $99 | 5.8% |
| Kentucky | $18,400 | $50,600 | $119,600 | $40 | 6.0% |
| Louisiana | $18,400 | $50,600 | $119,600 | $100 | 4.5% |
| Missouri | $18,400 | $50,600 | $119,600 | $50 | 4.2% |
| Tennessee | $18,400 | $50,600 | $119,600 | $300 | 7.0% |
| Texas | $18,400 | $50,600 | $119,600 | $300 | 6.3% |
| Georgia | $18,800 | $51,700 | $122,200 | $100 | 4.0% |
| Illinois | $19,000 | $52,250 | $123,500 | $150 | 6.3% |
| New Mexico | $19,000 | $52,250 | $123,500 | $50 | 5.1% |
| Wisconsin | $19,000 | $52,250 | $123,500 | $130 | 5.0% |
| North Carolina | $19,200 | $52,800 | $124,800 | $125 | 4.8% |
| South Carolina | $19,200 | $52,800 | $124,800 | $110 | 6.0% |
| South Dakota | $19,400 | $53,350 | $126,100 | $150 | 4.5% |
| Minnesota | $19,600 | $53,900 | $127,400 | $155 | 6.9% |
| North Dakota | $19,800 | $54,450 | $128,700 | $135 | 5.0% |
| Wyoming | $20,000 | $55,000 | $130,000 | $100 | 4.0% |
| Nevada | $20,400 | $56,100 | $132,600 | $425 | 6.8% |
| Arizona | $20,600 | $56,650 | $133,900 | $50 | 5.6% |
| Florida | $20,600 | $56,650 | $133,900 | $125 | 6.0% |
| Idaho | $20,600 | $56,650 | $133,900 | $100 | 6.0% |
| Pennsylvania | $20,600 | $56,650 | $133,900 | $125 | 6.0% |
| Delaware | $20,800 | $57,200 | $135,200 | $110 | 0.0% |
| Virginia | $20,800 | $57,200 | $135,200 | $100 | 4.3% |
| Colorado | $21,200 | $58,300 | $137,800 | $50 | 2.9% |
| Montana | $21,200 | $58,300 | $137,800 | $70 | 0.0% |
| Utah | $21,200 | $58,300 | $137,800 | $54 | 4.8% |
| Oregon | $22,400 | $61,600 | $145,600 | $100 | 0.0% |
| Vermont | $22,400 | $61,600 | $145,600 | $125 | 6.0% |
| Maine | $22,800 | $62,700 | $148,200 | $175 | 5.5% |
| Rhode Island | $23,200 | $63,800 | $150,800 | $150 | 7.0% |
| New Hampshire | $23,400 | $64,350 | $152,100 | $102 | 0.0% |
| Washington | $23,600 | $64,900 | $153,400 | $200 | 6.5% |
| Connecticut | $23,800 | $65,450 | $154,700 | $120 | 6.3% |
| New Jersey | $25,000 | $68,750 | $162,500 | $125 | 6.6% |
| Alaska | $25,400 | $69,850 | $165,100 | $250 | 0.0% |
| Maryland | $25,800 | $70,950 | $167,700 | $100 | 6.0% |
| California | $27,000 | $74,250 | $175,500 | $70 | 7.3% |
| New York | $27,800 | $76,450 | $180,700 | $200 | 4.0% |
| Massachusetts | $30,000 | $82,500 | $195,000 | $500 | 6.3% |
| Hawaii | $38,600 | $106,150 | $250,900 | $50 | 4.0% |
Cheapest & Most Expensive States
5 Cheapest States
- Mississippi$46,750
- West Virginia$47,300
- Alabama$48,400
- Arkansas$48,950
- Oklahoma$48,950
5 Most Expensive States
- Hawaii$106,150
- Massachusetts$82,500
- New York$76,450
- California$74,250
- Maryland$70,950
Frequently Asked Questions
A financial planning RIA typically costs $20,000–$55,000 to launch, including RIA registration ($1,000–$3,000), CFP certification (optional but valuable at $2,000–$5,000), E&O insurance ($1,500–$4,000/year), planning software, and working capital. Plan for 12–24 months before reaching profitability.
Fee-only planners must register as Investment Advisor Representatives (IARs) by passing the Series 65 exam and registering with their state as an RIA. Commission-based planners need FINRA Series 7 and Series 66. The CFP certification, while not legally required, is the industry standard credential.
Fee-only planners charge AUM fees (0.5–1.5% annually), flat fees ($1,500–$5,000/year retainer), or hourly rates ($200–$400/hour). Fee-based planners combine these with commissions. AUM fees build recurring revenue but require significant assets ($500K+ per client for $5,000/year revenue at 1%).
A Registered Investment Advisor (RIA) is an SEC- or state-registered entity that provides investment advice for compensation. If you manage client assets, provide portfolio recommendations, or charge ongoing investment advisory fees, RIA registration is typically required regardless of your other licenses.