How RIAs Structure Their Businesses – 2026 Study

Many financial advisors may be tasked with helping their clients choose an appropriate business structure, weighing the pros and cons of different legal protections and obligations, taxation guidelines, and general business maneuverability for the specific circumstances at hand. In turn, advisors starting or transforming their own firm will face a similar choice: deciding whether a corporation, Limited Liability Corporation (LLC), partnership, or other arrangement is best for their business goals. Out of 17,000 Registered Investment Advisors (RIA) on file with the SEC as of April 2026, most firms opt for a few frontrunning organization types – but these trends fluctuate within different areas of the U.S. and business size.

With this in mind, SmartAsset analyzed Form ADV data to determine firm preferences for business structure, size, and location in 2026.

Key Findings

• Two-thirds of RIAs are LLCs. A Limited Liability Company is the preferred route for 66.55% of firms. Corporations are a far second with 21.29% opting to organize this way. Another 11.11% operate as Limited Partnerships (LPs). All other operating forms are a small minority, each representing under 0.50% of all firms.
• Three states have a strong inclination toward Limited Partnerships. Out of 494 total firms, 22.47% are LPs in New Jersey, more than double the nationwide average of 11.11%. New York and Florida are similar outliers in the rate of Limited Partnerships at 21.72% and 21.69% of firms, respectively.
• Average employee counts and types vary by organization type. LLCs typically employ 54.9 people, 57.5% of whom perform investment advisory services. Corporations average 87.8 employees, 51.9% of whom are investment advisors. LPs average 94.2 employees, 48.0% of whom are investment advisors. LLPs average 69.0 employees, with only 36.6% performing investment advisory services. Sole proprietors average 1.7 employees, including the owner.
• From state to state, organization as a corporation ranges from 10% to 50%. Half of Rhode Island’s 12 RIAs are registered as corporations, compared to only 10% of Pennsylvania’s 20 firms. These two are at opposite poles in LLC registrations, with 41.67% and 85.0% of registrations, respectively. What Rhode Island and Pennsylvania firms do have in common the first and second highest rate of uniquely structured firms, including S-Corps, business trusts.

RIA Business Structure by State

States are ranked based on the diversity of business structures used for RIAs whose main office location is located within the state.

1. Rhode Island

• Limited Liability Company: 41.67%
• Corporation: 50.00%
• Limited Partnership (LP): 0.00%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 8.33%
• Total firms: 12

2. Nebraska

• Limited Liability Company: 54.84%
• Corporation: 41.94%
• Limited Partnership (LP): 3.23%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.00%
• Total firms: 31

3. Alaska

• Limited Liability Company: 57.14%
• Corporation: 42.86%
• Limited Partnership (LP): 0.00%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.00%
• Total firms: 21

4. Wyoming

• Limited Liability Company: 59.38%
• Corporation: 37.50%
• Limited Partnership (LP): 3.13%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.00%
• Total firms: 32

5. Idaho

• Limited Liability Company: 60.84%
• Corporation: 37.06%
• Limited Partnership (LP): 0.00%
• Limited Liability Partnership (LLP): 1.40%
• Partnership: 0.00%
• Sole Proprietorship: 0.70%
• Other: 0.00%
• Total firms: 143

6. New Jersey

• Limited Liability Company: 61.13%
• Corporation: 15.59%
• Limited Partnership (LP): 22.47%
• Limited Liability Partnership (LLP): 0.40%
• Partnership: 0.00%
• Sole Proprietorship: 0.20%
• Other: 0.20%
• Total firms: 494

7. Montana

• Limited Liability Company: 61.54%
• Corporation: 38.46%
• Limited Partnership (LP): 0.00%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.00%
• Total firms: 13

8. Mississippi

• Limited Liability Company: 62.07%
• Corporation: 34.48%
• Limited Partnership (LP): 0.00%
• Limited Liability Partnership (LLP): 1.15%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 2.30%
• Total firms: 87

9. Florida

• Limited Liability Company: 62.35%
• Corporation: 15.16%
• Limited Partnership (LP): 21.69%
• Limited Liability Partnership (LLP): 0.12%
• Partnership: 0.08%
• Sole Proprietorship: 0.16%
• Other: 0.44%
• Total firms: 2526

10. New York

• Limited Liability Company: 62.43%
• Corporation: 15.18%
• Limited Partnership (LP): 21.72%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.08%
• Sole Proprietorship: 0.16%
• Other: 0.44%
• Total firms: 2523

11. Minnesota

• Limited Liability Company: 63.61%
• Corporation: 34.69%
• Limited Partnership (LP): 1.36%
• Limited Liability Partnership (LLP): 0.34%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.00%
• Total firms: 294

12. Utah

• Limited Liability Company: 63.69%
• Corporation: 24.97%
• Limited Partnership (LP): 9.64%
• Limited Liability Partnership (LLP): 0.16%
• Partnership: 0.55%
• Sole Proprietorship: 0.55%
• Other: 0.44%
• Total firms: 1826

13. Kansas

• Limited Liability Company: 64.10%
• Corporation: 29.67%
• Limited Partnership (LP): 5.49%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.37%
• Other: 0.37%
• Total firms: 273

14. Virginia

• Limited Liability Company: 64.86%
• Corporation: 31.42%
• Limited Partnership (LP): 3.72%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.00%
• Total firms: 296

15. California

• Limited Liability Company: 64.86%
• Corporation: 31.42%
• Limited Partnership (LP): 3.72%
• Limited Liability Partnership (LLP): 1.01%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.00%
• Total firms: 296

16. Illinois

• Limited Liability Company: 65.41%
• Corporation: 33.33%
• Limited Partnership (LP): 1.26%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.00%
• Total firms: 159

17. Colorado

• Limited Liability Company: 65.47%
• Corporation: 19.15%
• Limited Partnership (LP): 13.42%
• Limited Liability Partnership (LLP): 1.15%
• Partnership: 0.16%
• Sole Proprietorship: 0.16%
• Other: 0.49%
• Total firms: 611

18. North Carolina

• Limited Liability Company: 66.37%
• Corporation: 30.09%
• Limited Partnership (LP): 2.65%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.88%
• Total firms: 226

19. New Mexico

• Limited Liability Company: 66.49%
• Corporation: 31.94%
• Limited Partnership (LP): 1.05%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.52%
• Total firms: 191

20. Maine

• Limited Liability Company: 67.80%
• Corporation: 32.20%
• Limited Partnership (LP): 0.00%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.00%
• Total firms: 59

21. Alabama

• Limited Liability Company: 67.86%
• Corporation: 29.76%
• Limited Partnership (LP): 1.19%
• Limited Liability Partnership (LLP): 1.19%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.00%
• Total firms: 84

22. Michigan

• Limited Liability Company: 68.09%
• Corporation: 24.68%
• Limited Partnership (LP): 5.19%
• Limited Liability Partnership (LLP): 0.19%
• Partnership: 0.37%
• Sole Proprietorship: 0.00%
• Other: 1.48%
• Total firms: 539

23. Maryland

• Limited Liability Company: 68.35%
• Corporation: 16.21%
• Limited Partnership (LP): 13.73%
• Limited Liability Partnership (LLP): 0.38%
• Partnership: 0.67%
• Sole Proprietorship: 0.29%
• Other: 0.38%
• Total firms: 1049

24. Missouri

• Limited Liability Company: 68.42%
• Corporation: 31.58%
• Limited Partnership (LP): 0.00%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.00%
• Total firms: 38

25. Arizona

• Limited Liability Company: 68.47%
• Corporation: 22.82%
• Limited Partnership (LP): 7.81%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.15%
• Sole Proprietorship: 0.00%
• Other: 0.75%
• Total firms: 666

26. Massachusetts

• Limited Liability Company: 68.75%
• Corporation: 27.94%
• Limited Partnership (LP): 1.84%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.37%
• Sole Proprietorship: 0.00%
• Other: 1.10%
• Total firms: 272

27. South Dakota

• Limited Liability Company: 68.75%
• Corporation: 31.25%
• Limited Partnership (LP): 0.00%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.00%
• Total firms: 32

28. Wisconsin

• Limited Liability Company: 69.09%
• Corporation: 29.09%
• Limited Partnership (LP): 1.82%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.00%
• Total firms: 110

29. Louisiana

• Limited Liability Company: 69.15%
• Corporation: 28.72%
• Limited Partnership (LP): 0.27%
• Limited Liability Partnership (LLP): 0.53%
• Partnership: 0.00%
• Sole Proprietorship: 0.27%
• Other: 1.06%
• Total firms: 376

30. Hawaii

• Limited Liability Company: 70.07%
• Corporation: 25.35%
• Limited Partnership (LP): 2.46%
• Limited Liability Partnership (LLP): 0.70%
• Partnership: 0.70%
• Sole Proprietorship: 0.00%
• Other: 0.70%
• Total firms: 284

31. Georgia

• Limited Liability Company: 71.43%
• Corporation: 25.71%
• Limited Partnership (LP): 1.43%
• Limited Liability Partnership (LLP): 1.43%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.00%
• Total firms: 70

32. North Dakota

• Limited Liability Company: 71.43%
• Corporation: 26.19%
• Limited Partnership (LP): 1.19%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 1.19%
• Total firms: 84

33. Delaware

• Limited Liability Company: 72.31%
• Corporation: 18.28%
• Limited Partnership (LP): 8.60%
• Limited Liability Partnership (LLP): 0.81%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.00%
• Total firms: 372

34. Oklahoma

• Limited Liability Company: 72.86%
• Corporation: 27.14%
• Limited Partnership (LP): 0.00%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.00%
• Total firms: 70

35. Oregon

• Limited Liability Company: 72.96%
• Corporation: 25.47%
• Limited Partnership (LP): 1.57%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.00%
• Total firms: 318

36. Nevada

• Limited Liability Company: 73.06%
• Corporation: 19.48%
• Limited Partnership (LP): 6.78%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.10%
• Sole Proprietorship: 0.10%
• Other: 0.48%
• Total firms: 1032

37. Arkansas

• Limited Liability Company: 73.08%
• Corporation: 23.08%
• Limited Partnership (LP): 3.85%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.00%
• Total firms: 26

38. Tennessee

• Limited Liability Company: 73.51%
• Corporation: 24.32%
• Limited Partnership (LP): 1.62%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.54%
• Total firms: 185

39. New Hampshire

• Limited Liability Company: 74.16%
• Corporation: 24.72%
• Limited Partnership (LP): 0.00%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 1.12%
• Other: 0.00%
• Total firms: 89

40. South Carolina

• Limited Liability Company: 74.32%
• Corporation: 21.62%
• Limited Partnership (LP): 2.70%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 1.35%
• Total firms: 74

41. Ohio

• Limited Liability Company: 74.62%
• Corporation: 24.62%
• Limited Partnership (LP): 0.00%
• Limited Liability Partnership (LLP): 0.77%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.00%
• Total firms: 130

42. Texas

• Limited Liability Company: 74.71%
• Corporation: 21.84%
• Limited Partnership (LP): 2.30%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 1.15%
• Total firms: 348

43. Connecticut

• Limited Liability Company: 77.20%
• Corporation: 18.65%
• Limited Partnership (LP): 1.55%
• Limited Liability Partnership (LLP): 1.55%
• Partnership: 0.52%
• Sole Proprietorship: 0.00%
• Other: 0.52%
• Total firms: 193

44. Iowa

• Limited Liability Company: 77.78%
• Corporation: 22.22%
• Limited Partnership (LP): 0.00%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.00%
• Total firms: 9

45. Vermont

• Limited Liability Company: 77.83%
• Corporation: 18.40%
• Limited Partnership (LP): 2.83%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.47%
• Sole Proprietorship: 0.47%
• Other: 0.00%
• Total firms: 212

46. Indiana

• Limited Liability Company: 78.21%
• Corporation: 17.95%
• Limited Partnership (LP): 2.56%
• Limited Liability Partnership (LLP): 1.28%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.00%
• Total firms: 78

47. Washington

• Limited Liability Company: 78.87%
• Corporation: 16.20%
• Limited Partnership (LP): 4.23%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.70%
• Other: 0.00%
• Total firms: 142

48. Kentucky

• Limited Liability Company: 81.63%
• Corporation: 18.37%
• Limited Partnership (LP): 0.00%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.00%
• Total firms: 49

49. West Virginia

• Limited Liability Company: 84.62%
• Corporation: 15.38%
• Limited Partnership (LP): 0.00%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 0.00%
• Total firms: 26

50. Pennsylvania

• Limited Liability Company: 85.00%
• Corporation: 10.00%
• Limited Partnership (LP): 0.00%
• Limited Liability Partnership (LLP): 0.00%
• Partnership: 0.00%
• Sole Proprietorship: 0.00%
• Other: 5.00%
• Total firms: 20

Data and Methodology

Counts for business registrations come from April 2026 Form ADV filings with the Securities and Exchange Commission (SEC) for Registered Investment Advisors. Only firms with no disclosures and with the main office based in a U.S. state were considered.

Questions about this study? Contact us at press@smartasset.com

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