Most financial advisory firms are small. The median SEC-registered adviser has 8 employees and one office, and the 15,799 firms registered with states instead average one non-clerical employee. A solo or small firm usually gives you one person who knows your whole situation, often with flat or hourly pricing. A large firm gives you in-house specialists, more people to cover when your advisor is out, and a business that doesn’t depend on one person. Either way, your money sits at a separate custodian in your name, not with the advisor. The real question for a solo advisor is what happens if they get sick, retire or sell, and you should ask it before you sign.
The short version
| Solo or small firm | Large firm | |
|---|---|---|
| Who you work with | The owner, usually the same person every time | A lead advisor plus a team, which may change |
| Specialists | Often outside partners: a CPA, an estate attorney | Often in-house: tax, estate, insurance, investments |
| Pricing | Hourly, flat and per-plan fees are common | Varies; ask for the price in dollars |
| Backup when the advisor is away | Depends on the plan they’ve set up | Built in |
| If the advisor leaves | The firm may close, merge or be sold | You stay at the firm or follow the advisor |
| Where your money sits | A qualified custodian in your name | The same, sometimes the firm’s own affiliate |
| Regulator | The state, below about $100 million under management | Usually the SEC |
How small most firms are
That chart only counts firms registered with the SEC. Firms with less than about $100 million under management generally register with their state instead, as a state-registered adviser. In 2025 there were 15,799 of them, and on average each had 1 non-clerical employee, 9 clients and $19 million under management. Two-thirds offer financial planning, and almost all of those offer hourly or fixed fees.
Firms that focus on individual clients are small even at the SEC level: on average 8 employees and 2 offices. The very large firms, with more than 500 people, are 1.7% of the SEC count.
So “solo or large” is often really “a one-to-ten person practice or a national brand.” Some of the largest brands are also broker-dealers, which our guide to RIA vs broker-dealer explains.
What a solo or small firm does well
One person knows your whole picture. The advisor you meet is the one who does the work, so you don’t repeat your story to a new associate every year.
Pricing that fits smaller or unusual situations. Small firms commonly charge a flat fee, by the hour or per plan: almost all state-registered firms that offer planning offer hourly or fixed fees. Many work without an asset minimum. Of 781 fee-only firms whose websites state a minimum, 50% say they have none.
You talk to the decision-maker. The person setting the price and the approach is in the room, so a custom arrangement is a conversation, not a policy exception.
What a large firm does well
Specialists under one roof. Tax planning, estate work, insurance reviews and investment research done by people who do only that. That matters most for complex or very large estates. See ultra-high-net-worth advisors and estate planning specialists in the public graph.
Coverage. If your advisor is on leave or leaves, someone else already knows your file.
A business that outlives one person. Families planning across generations often want a firm that will still be there for their children. See multi-generational family advisors.
The risks on each side
With a solo advisor, the risk is the person. Illness, death, retirement or a sale can end the relationship suddenly. Three protections help:
- Your accounts are held at a custodian, not by the advisor, and the advisor’s authority over them is limited. You can always move them. The custody entry explains how.
- Federal law requires an advisory contract to say it can’t be assigned “without the consent of the other party to the contract.” If the firm is sold, you have to agree before your contract moves to the buyer.
- A written continuity plan names who steps in. Ask to see it.
With a large firm, the risk is turnover and distance. Your advisor may move firms, retire or hand you to a junior colleague. If your advisor is a broker and moves to a new brokerage firm that contacts you about transferring, FINRA Rule 2273 requires the new firm to give you FINRA’s educational communication on what to consider before you move. Some firms also offer their own funds or other products, so ask what the firm earns on what it recommends.
What each costs
Our fee report doesn’t split prices by firm size, so there’s no reliable figure for “small firms charge X, large firms charge Y.” What we can say is what fee-only firms that publish prices charge:
- A median 1% of assets a year for investment management (middle half 0.95% to 1%)
- $4,500 a year for flat ongoing planning (middle half $2,400 to $7,200)
- $2,000 for a one-time plan, or $300 an hour
The bigger price difference is usually the model, not the size. A percentage of assets grows with your balance; a flat fee doesn’t. They cost about the same at $450,000. See flat fee vs percentage of assets and financial planner vs wealth manager, which covers what the extra services at a larger firm usually cost.
When a solo or small firm is the better choice
- You want one relationship. The same person, every meeting, for years.
- You want a flat or hourly price. Or you don’t meet a large firm’s minimum. Browse flat-fee advisors.
- Your situation is planning-heavy, not product-heavy. Retirement, taxes and cash flow, with investments you’re happy to keep simple. See retirement planning advisors.
When a large firm is the better choice
- Your situation needs several specialists at once. A business sale, a complex estate, assets in several countries.
- You want continuity guaranteed by structure. Especially if a spouse or children will rely on the firm after you.
- You want a deeper bench. More people reviewing your plan and your portfolio.
How to check a firm of any size
- Look up the firm on the SEC’s adviser search and open its Form ADV. Part 1, Item 5 shows how many employees the firm has, how many give advice and how many clients it serves.
- Read the Form ADV Part 2B for each person who’ll advise you: background, disclosures and other business activities.
- Ask a solo advisor for the continuity plan in writing. Who takes over, how you’d be told, and whether you can leave without a fee.
- Ask a large firm who you’ll actually work with. The lead advisor’s name, how often you’ll meet them, and what happens if they leave.
- Ask both how they’re paid. A fee-only firm earns nothing from what it recommends. Our guide to checking a financial advisor covers the rest, and questions to ask a financial advisor has more to bring to the first meeting.