Broker Dealer In A Box™

Package Includes: Corporate Services and shell registration of a new FINRA Introducing Broker-Dealer

Package excludes FINRA new membership application filing fee of $7,500. This third party fee is paid directly to FINRA.

Corporate Services

• Assist with Broker-Dealer LLC Name

• Assign a Registered Agent

• File Articles of Organization

• Create an LLC Operating Agreement

• Obtain an EIN (Employer Identification Number)

• Register for State Taxes (If Applicable)

• Open a Business Bank Account

• Apply for Business Licenses and Permits

• Set Up Accounting and Record-Keeping Systems

Shell registration of a new broker-dealer

• Preliminary Planning

• Define Business Model: Clearly define the scope of services (e.g., full-service broker-dealer, introducing broker, proprietary trading).

• Select Key Personnel: Appoint executive officers, directors, and other key personnel, such as the Chief Compliance Officer (CCO), and Anti-Money Laundering (AML) Officer. Referral to Accounting & Compliance International (ACI) for Financial and Operations Principal (FinOp).

• Determine Entity Structure: Establish the legal structure of the firm (e.g., LLC, Corporation) and register the entity at the state level.

• Prepare Financial Projections: Develop a business plan with detailed financial projections for the first year, including anticipated revenues, expenses, and capital requirements.

• Prepare Form BD (Uniform Application for Broker-Dealer Registration)

• Complete and file Form BD with the SEC and FINRA via the Central Registration Depository (CRD) system.

• Draft a detailed Business about the firm's business model, control persons, ownership structure, and compliance programs.

• Obtain FINRA Entitlement

• Set up user accounts with FINRA’s systems, including CRD, Firm Gateway, and other regulatory systems.

• Designate an account administrator to manage FINRA-related filings.

• Complete FINRA's New Member Application (NMA) Process

• Submit Form NMA: Prepare and submit the New Member Application via FINRA’s Firm Gateway. The application will include the following:

• Form BD

• Business Plan: Outline the firm’s services, customer base, revenue model, and marketing strategies.

• Organizational Chart: Describe management and supervisory structure.

• Written Supervisory Procedures (WSPs): Develop a comprehensive WSP manual that covers key areas, including trading, customer accounts, AML procedures, advertising, and supervisory controls.

• Anti-Money Laundering (AML) Program: Submit a detailed AML compliance program, as required by FINRA Rule 3310.

• Continuing Education Plan: Develop a plan for ensuring ongoing training and education for registered representatives and principals.

• Supply all broker dealer disclosures including, but not limited to, privacy policy, terms and conditions of service, website, prior investment performance, and E-consent disclosure

• Prepare and Submit Additional Documents

• Financial Documents: Submit financial statements, demonstrating sufficient capital, including balance sheets and income statements.

• Fidelity Bond Coverage: Obtain fidelity bond insurance as required by FINRA Rule 4360, which protects against employee dishonesty and fraud.

• Policies and Procedures Manual: Document firm policies on recordkeeping, order routing, customer disclosures, and other operational areas.

• Business Continuity Plan (BCP): Provide a BCP that outlines how the firm will operate in case of a significant business disruption (required by FINRA Rule 4370).

• Designate Key Principals and Register Representatives

• Ensure key personnel (e.g., CEO, CCO, FinOp, AML Officer) have the necessary licenses such as the Series 7, Series 24 (General Securities Principal), and Series 63 (state registration).

• Locate a Series 27 or 28 FinOp for the firm. FinOp fees are separate and not covered by GiGCXOs.

• Submit Form U4 for each registered representative and principal to disclose personal background, employment history, and other relevant details.

• Undergo FINRA’s Interview and Review Process

• Participate in Pre-Membership Interview (PMI): FINRA staff will interview key personnel to discuss the firm’s business model, supervisory procedures, and operational structure.

• Respond to any follow-up requests or questions from FINRA regarding the application or compliance program.

• Register with the SEC

• After FINRA approval, the firm will be registered with the SEC, and the broker-dealer can officially begin operations.

• Ensure all necessary SEC filings, are prepared and submitted on a timely basis.

• Register with State Regulators (Blue Sky Laws)

• Register the broker-dealer with each state where the firm intends to conduct business, as required by state securities regulators.

• File Form U4 for representatives who will be doing business in specific states.

• Register for Fidelity Bond

• Depending on broker dealer business type, consider obtaining general liability insurance, professional liability, or other coverage to protect the LLC.

• Complete Additional Regulatory Filings

• SIPC Membership: Register with the Securities Investor Protection Corporation (SIPC) to protect customers in case of broker-dealer failure.