Starting a family office means deciding what it will do, how it will be structured, and who will run it. Most new offices start small, with one or two hires and outside advisers, and grow from there.
1. Decide what the office will do
List the services you need: investment oversight, accounting and reporting, tax, estate planning, philanthropy, property and household management. Decide which to keep in-house and which to outsource.
2. Check whether the numbers work
A dedicated office has real fixed costs: salaries, rent, technology, insurance and outside advisers. Experts quoted by ai-CIO put the break-even around $500 million in assets and estimate a small office can cost about 2% of assets a year. Below that, a multi-family office or virtual family office may be better value.
3. Choose a legal structure
Most US family offices are set up as an LLC or management company owned by the family or its trusts. Work with an estate attorney and tax adviser on the structure, since it affects how costs can be deducted and how the office is regulated.
4. Make your first hire
The first hire is usually a controller or chief of staff. A controller gets the books, reporting and tax under control; a chief of staff manages projects, properties and people. Many families hire both within the first year.
5. Pick technology early
Choose reporting and accounting software before data piles up across spreadsheets. Good systems make your first hires far more productive.
6. Set governance
Agree how decisions are made, who the office reports to, and how costs are shared between family members.
What it costs to start
| Item | Typical annual cost (estimate) |
|---|---|
| Controller | $175K–$240K base plus bonus |
| Accountant | $95K–$145K base plus bonus |
| Chief of staff | $150K–$250K base plus bonus |
| Software, office, insurance | $50K–$250K |
| Outside tax, legal and audit | $100K–$500K+ |
Salary ranges are our estimates for US single family offices managing $250M–$1B; see the salary guide for your city.
Questions
How much money do you need to start a family office?
There's no legal minimum, but experts often put the break-even for a dedicated single family office around $500 million in assets.
Who should a new family office hire first?
Usually a controller to own accounting, reporting and tax, or a chief of staff to manage projects and people.
How long does it take to set up a family office?
Often six to twelve months to agree the structure, hire the first staff and move accounts and reporting over.