Owner resources

How to Choose a Financial Advisor as a Business Owner

Business owners have a different financial life than most households: irregular income, a large asset you cannot easily sell, company cash that needs a plan, and an eventual transition. This page answers common questions about what an advisor can do for an owner and how to compare advisors.

Educational only. Not personalized investment, tax, or legal advice. Vital Investment Management, LLC is a fee-only fiduciary and SEC-registered RIA (CRD #300811). Dillon Goodman, CPA, CFP®, works with Northern Colorado owners on the household side of planning. Vital does not prepare tax returns, does not draft legal documents, and does not broker business transactions; it coordinates with the owner's CPA, attorney, and valuation professionals.

What does a financial advisor do for a business owner?

An advisor who works with owners usually looks at the business and the household together. Common areas include:

• Personal financial planning: cash flow, retirement projections, insurance review, and education goals.
• Treasury and cash management: a written plan for operating cash and reserves. See treasury cash for growing owners.
• Owner retirement plans: comparing plan types with your CPA and third-party administrator. See business retirement plans.
• Investment management: building savings outside the company and managing personal portfolios. See wealth outside the company.
• Transition planning: preparing the household for a sale, family transfer, or step-back. See the transition and succession guide.
• Estate coordination: working with your attorney so ownership, beneficiaries, and documents fit the plan.

An advisor is not a substitute for your CPA or attorney. Vital, for example, does not prepare tax returns, draft legal documents, or broker business sales.

Fee-only vs. commission: what is the difference?

How an advisor is paid shapes the conflicts of interest you should ask about.

• Fee-only advisors are paid only by clients, for example through an asset-based fee, a flat fee, or an hourly fee. They do not receive commissions from selling products.
• Commission-based professionals are paid by product providers when you buy an insurance policy, annuity, or investment product.
• "Fee-based" can mean a mix of fees and commissions. The similar names cause confusion, so ask directly.

Any compensation model can be appropriate for some needs; what matters is that you understand it. A registered investment adviser describes its fees and conflicts in Form ADV Part 2A and Form CRS, which you can read at adviserinfo.sec.gov. For more on pricing, see what fee-only investment management costs.

Questions to ask any advisor

• Are you a fiduciary for all of the advice you give me, all of the time?
• How are you paid, and do you receive any compensation from third parties?
• How many of your clients own businesses, and what do you typically help them with?
• How do you work with my CPA and attorney? Who does what?
• Do you help with company cash and reserves, or only personal investments?
• What happens to our relationship if I sell or transfer the business?
• Where is my money held, and who is the custodian?
• May I see your Form ADV Part 2A and Form CRS?

Checking an advisor's background

You can look up registered investment advisers and their representatives on the SEC's Investment Adviser Public Disclosure site and look up brokers on FINRA BrokerCheck. These show registrations, disclosures, and any reported disciplinary history.

Local advisors in Northern Colorado

If you own a business in Larimer County, these pages describe how Vital works with owners in each community: Loveland, Fort Collins, and Berthoud.

Related reading

• What fee-only investment management costs
• Treasury management services
• Business transition services
• Investment management services
• Business exit planning in Northern Colorado
• How we work

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