Process

Choose the Type of Investment Company

• Open-End Investment Company: Continuously issues new shares and allows investors to buy and sell shares directly with the company.
• Closed-End Investment Company: Issues a fixed number of shares through an initial public offering (IPO) and trades on the stock exchange1.

Select a Business Structure

• Corporation: Offers liability protection and can raise capital through stock issuance. Requires filing Articles of Incorporation2.
• LLC (Limited Liability Company): Provides liability protection with flexible management structures. Requires filing Articles of Organization2.
• Partnership: Involves two or more people sharing profits, losses, and management duties. Can be a general or limited partnership2.

Develop a Business Plan

• Executive Summary: Brief overview of your business goals and strategies.
• Market Analysis: Research on your target market and competitors.
• Marketing Strategy: Plan for attracting and retaining clients.
• Financial Projections: Detailed financial forecasts, including income statements, cash flow statements, and balance sheets1.

Register Your Business

• Name Registration: Ensure your business name is unique and complies with state regulations.
• Articles of Incorporation/Organization: File these documents with your state’s Secretary of State1.
• Employer Identification Number (EIN): Obtain an EIN from the IRS for tax purposes1.

Obtain Necessary Licenses and Permits

• State Licenses: Depending on your state, you may need specific licenses to operate an investment company.
• Federal Licenses: Register with the Securities and Exchange Commission (SEC) if you plan to manage investments for others3.

Set Up Financial Accounts

• Corporate Bank Account: Open a bank account in your corporation’s name.
• Accounting Systems: Implement accounting software to manage finances and ensure compliance with tax regulations1.

Hire Legal and Financial Advisors

• Legal Advisors: Ensure compliance with all legal requirements and help with contracts and other legal documents.
• Financial Advisors: Assist with investment strategies, financial planning, and regulatory compliance2.

Market Your Business

• Website and Online Presence: Create a professional website and utilize social media to reach potential clients.
• Networking: Attend industry events and join professional organizations to build connections.
• Advertising: Use targeted advertising to attract your ideal clients1.

Regulation

Even if you start the investment as a corporation, you don’t need a license. The things you need to do is just appoint the securities firm.

SASAL Recommendation

When you establish the investment business, SASAL Recommend to contract with large corporation. When you need consultation SASAL is able to support through counselor service.