Family Office Setup in the United States
The US hosts the world's largest family office population, anchored by the SEC Family Office Rule, world-class trust jurisdictions like Delaware and South Dakota, and the deepest private markets on earth.
Key advantages
SEC Family Office Rule
Offices serving only 'family clients' are excluded from Investment Advisers Act registration — a clear, well-tested federal exemption.
Dynasty trust jurisdictions
South Dakota, Delaware and Nevada permit perpetual trusts, directed trusts and strong asset protection for multi-generational planning.
State tax arbitrage
Locating the office and trusts in zero-income-tax states (Florida, Texas, South Dakota) can materially reduce family tax drag.
Private markets access
Unrivalled deal flow across venture, private equity, real estate and credit — plus the deepest talent pool of investment professionals.
Regulatory framework
Under the SEC Family Office Rule (Rule 202(a)(11)(G)-1), an office is excluded from investment adviser registration if it serves only family clients, is wholly owned and controlled by the family, and does not hold itself out to the public as an adviser. Serving even one non-family client generally triggers registration.
Structures typically combine an LLC management company (often Delaware) with dynasty trusts in South Dakota or Nevada, private trust companies for control, and state selection driven by family residence. We coordinate US counsel and fiduciaries end-to-end.
Costs
| Item | Cost |
|---|---|
| Entity formation (LLC) | $2,000 – 10,000 (one-time) |
| Legal & tax structuring | $100,000 – 300,000 (one-time) |
| Private trust company (optional) | $200,000+ setup, $150,000+/year |
| Annual operating cost (lean SFO) | $1,000,000 – 3,000,000 |
| Typical minimum viable AUM | $100M – $250M |
Setup timeline
- Structure & state selection (Weeks 1–6): Family Office Rule analysis, trust situs and management company design.
- Formation & trusts (Weeks 7–12): Entity formation, dynasty trust settlement and fiduciary appointments.
- Team & infrastructure (Weeks 13–20): Key hires, custody, reporting and compliance calendar.
- Governance launch (Weeks 21–26): Family constitution, investment committee and policy statements.
Frequently asked questions
Does a US family office need to register with the SEC?
Not if it qualifies under the Family Office Rule: serving only family clients, family-owned and controlled, and not holding itself out as an adviser. Outside clients trigger registration.
Which US state is best for family office trusts?
South Dakota leads on perpetual trusts, privacy and no state income tax; Delaware on directed trusts and case law; Nevada on asset protection. Office location often differs from trust situs.
What is the minimum wealth for a US single family office?
Most US SFOs form at $100M–$250M+, driven by staffing costs. Below that, MFOs and outsourced-CIO models dominate.
Can non-US families set up a US family office?
Yes — often as an investment office for US assets paired with offshore holding structures. Pre-immigration tax planning is critical before any family member becomes a US person.