How to Start an Investment Company in USA


Starting a company is an exciting time. You have the opportunity to make something of your own, and get paid for it! But there are many steps involved in starting a business. You need to register it with the state, determine who will be your clients or customers, and make sure that you’re getting everything you need from the government (and not getting anything you don’t want). One thing that can make this easier is knowing how long each step is going to take. The following article will help walk through the process of forming an investment company – one that allows others to invest their money into specific ventures in exchange for profits – step by step.

Acquire the necessary licenses

Before you can start an investment company in the United States, you’ll need to apply and acquire a few licenses. Your first stop should be the state where your business will be based, as different states require different licenses. Some of these include:

  • Business license
  • Investment advisor license
  • Broker-dealer license (B-D)
  • Securities dealer license (S-D) or broker’s license for individual securities broker-dealers who do not want to become members of a self regulatory organization (SRO) such as FINRA or SIPC.
  • Futures commission merchant (FCM).

Define your company’s structure

There are two main types of companies: corporations and sole proprietorships, which are the easiest to start. A corporation requires a board of directors and is more expensive to operate. However, since you’ll be able to raise money from investors in the future, it might be worth your while to set up a corporation now. A partnership can also raise money from investors but doesn’t require as much paperwork as a corporation does.

Obtain funding or partner with another company

As you can imagine, a lot of capital is needed to start an investment company. If you have a large sum of your own money or if some family/friends are willing to fund your startup costs, great! However, if not, there are other options for obtaining funding.

You could partner with another investment company that has the resources and experience necessary for starting up an outfit like yours. Your partner would provide some cash in exchange for a percentage of ownership in your new entity. This way they get to share in the risk while providing their knowledge and expertise—a win-win situation!

Set up your corporate bank accounts

Setting up corporate bank accounts is one of the most important things you need to do as an entrepreneur. There are two main reasons for this:

  • Your business needs a separate bank account from your personal finances to ensure that all of your money is accounted for. It’s important not to mix your personal and business finances, because if you ever get audited by the IRS, it will be easier for them if there are no questions about where certain funds came from or went. Also, having separate accounts makes it easier for you to keep track of how much money has come in and how much has gone out so far this month (and so on).
  • Setting up corporate bank accounts gives investors a way to make payments into your company without directly sending checks or wiring money into your personal account–which could raise red flags at tax time if they happened during years when investment income wasn’t being reported properly!

Determine who you’re going to serve

The first thing you’ll need to do is determine who your customers are going to be. Who will be buying your products and services? What kind of people are they, and what kinds of companies do they work for? Why would they choose you over one of the competitors that already exist in this space?

You also need to think about how much money in total is being invested by these people or organizations. You can look at industry data reports from TradeTech, which provides statistics on trading activity across all asset classes worldwide (stocks, bonds, commodities). This information can help you pinpoint where there’s room for growth in the market and determine if there’s enough demand among investors for what it is that you offer as an investment company.

Another important consideration is identifying who your competitors are: other investment companies offering similar products or services as yours. Once again using TradeTech’s data reports will help reveal how many firms offer similar offerings; consider reaching out directly with queries like “what makes me different than [name]?”


You need to be clear about your business goals and how you are going to achieve them. You also need to define your business, explain how it is different from its competitors, and show how it will make money.


The road to starting your own investment company is a long one, and it’s important to understand that there are many things that can go wrong along the way. However, if you have a passion for investing and want to get involved in this exciting business field, then you should take the first step now by researching your options and finding out what it takes!

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