58 % of founders earning ≥ $500 K rely on professional advisors for equity‑comp planning (UBS Entrepreneur Survey 2024). Ready to upgrade?
Compare vetted entrepreneurial advisors onSam’s List
Why Founders Need Niche Advisors
Variable income, concentrated equity, and rapid pivots make founder finances unlike nine‑to‑five earners. The wrong advisor can over‑diversify your net worth out of hard‑won cap‑table upside—or overlookQSBSentirely.
The 6 Traits Every Entrepreneurial Advisor Needs
Equity‑Comp Expertise
YourRSUs, ISOs, SAFEs, and QSBSall have different tax clocks. A savvy advisor knows when to file 83(b), how to time secondary‑share sales, and where to warehouse cash for AMT.
Mini‑case: A Kansas City SaaS founder cut a $220 K AMT bill to $40 K by early‑exercising ISOs and harvesting QSBS five years later.
Runway & Burn‑Rate Modeling
Beyond “keep six months’ cash,” founders need a 13‑week runway forecast that syncs with product road maps and hiring sprints.
Example: A Web3 agency avoided a 24 % APR revenue‑based‑financing deal because itsadvisorflagged a burn spike six weeks ahead.
Fundraising Fluency
Youradvisorshould translate cap‑table dilution, investor rights, and liquidation preferences into personal‑wealth impact. They also prep you for personal guarantees many lenders require post‑Series B.
QSBS & Tax‑Strategy Mastery
QSBScan shelter $10 M or 10× basis (whichever is greater) from federal tax—but only if you hold qualifying stock five years.Advisorsmust coordinateentity structure, 1045 rollovers, and state‑level add‑backs.
Founder Retirement & Diversification
SEP‑IRAs work until cash flow explodes; solo 401(k)s unlock back‑door Roths; cash‑balance plans move six‑figure pre‑tax dollars at $1 M+ salaries. A founder‑centric advisor times each upgrade.
Risk‑Management Playbook
Key‑person insurance, buy‑sell agreements, and cyber‑liability coverage matter more than another S&P 500 ETF.
Red‑Flag Answers
• “We’ll handle equity once you exit.”
• “No need to loop in your CPA—investments are separate.”
• “I’m a fiduciary most of the time.”
Founder Readiness Checklist
☐ 83(b) elections filed and stored
☐ 13‑week cash‑flow model live
☐ Cap‑table updated post‑fundraise
☐ Retirement vehicle chosen (SEP, solo 401(k), CB plan)
☐ Insurance gaps mapped
FAQ
What does a financial advisor do for entrepreneurs?
They integrate equity, salary, andexit planninginto a holistic wealth map—including QSBS timing and personal liquidity.
How are advisor fees treated if you own an LLC?
Planning fees tied to business decisions can often be expensed; pure investment management for personal assets cannot. Confirm with your CPA.
Should founders use the same advisor for company and personal wealth?
Yes—coordination avoids conflicting advice on salary vs. distributions and equity sales.
Which certifications matter?
CFP® + Series 65 for fiduciary duty; CPA/PFS if heavy tax work; CFA® if concentrated in complex assets.
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Author: Kimi, Co-founder of Sam's List
Kimi writes about what she's learning while building Sam's List and shares honest takeaways from her conversations with accountants and financial advisors across the country. None of this is financial advice—just the stuff most people wish someone told them sooner.
