First Heartland Capital Transition Modeler & Pro Forma Engine

Business Model Transition & Pro Forma Generator

Compare current firm revenue, platform fees, and grid payouts against First Heartland's 100% RIA advisory payout structure.

Phase 1 of 3: Advisor Profile & Commissions 33% Completed

1 Advisor Profile & Commission Production Distribution Channel & BD Revenue

🔒 100% Confidential • Secure Analysis • FHC Will Not Share With Your Current Firm

Advisor or Practice Name *

Confidential & Secure: Used strictly by First Heartland’s transition team to format your model. We never sell or share your data with third parties.

Mobile Phone Number (Optional)

What is your current distribution channel? *

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Independent Advisor RIA / Regional B/D / OSJ

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Career Agent NML / Pru / NYL / Base Draw

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Edward Jones LP Equity & Bonus Offset

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Wirehouse Advisor Merrill / MS / UBS / Wells

💡 Bank, Regional B/D, FiNet/1099 Wirehouse, or OSJ Recruit? Select Independent Advisor to model your operating expenses accurately. First Heartland does not support standalone advisor-owned RIAs.

What is your current tax filing status? *

1099 Independent Contractor W-2 Employee

Trimester & New Asset Bonuses ($)

Performance and production-based bonuses.

Enterprise Valuation Multiple (Independent Practice)

Valuation multiples vary significantly based on recurring vs. non-recurring revenue mix, client age demographics, and prevailing M&A market conditions.

📊 Broker-Dealer Production & Payout

Current BD Net: $63,000

Trailing 12-Month GDC ($) *

💡 Best guesses are okay for now—we can verify exact numbers against statements later. (Enter your personal allocated share net of team partner splits).

Current BD Payout (%) *

Your current firm's grid payout percentage. Override baseline grid if custom contract terms apply.

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ESTIMATED YR 1 FINANCIAL PACKAGE

Channel: --

Est. FHC Grid --%

Operating Net (Pre-Tax) $0

Operating Advantage Pending Data...

*Operating advantage excludes federal tax & loan forgiveness implications.

3 Practice Overhead, Staffing & Tax Structure Operating Costs & Offer Variables

Practice Fees & Operating Expenses

Current Tech & E&O ($)

Annual total (Includes pass-through FINRA CRD renewal & state registration fees).

FHC E&O Included

Mandatory comprehensive E&O coverage is fully bundled into First Heartland's flat $6,600 annual affiliation fee ($550/mo), eliminating separate out-of-pocket premiums.

Monthly Office Rent ($)

(Excludes staff & health)

Current Monthly Health ($)

Your current out-of-pocket

Prospective FHC Health ($)

First Heartland estimate (IRC §162(l) above-the-line AGI deduction; does not reduce Schedule SE self-employment tax base).

One-Time Startup Capital Outlay ($)

Nets strictly against Year 1 cash flow without inflating recurring Years 2–5 operating overhead. Excludes former firm ACAT account termination fees ($75–$150/account) charged to clients unless reimbursed. Operating expenses reflect full 12-month commitments regardless of ACAT transfer timelines.

Employer 401(k) Match (% of Pay)

Enter maximum company match as % of pay (typically 3%–6%). Independent 1099 practice owners fund retirement pre-tax directly out of practice net profit rather than a W-2 employer match.

👥 Support Staff & Payroll

Do you have support staff / assistants?

No Yes

⚙️ First Heartland Offer & FICA Tax Settings

100% RIA Grid Active

FHC BD Payout Grid % Commission Broker-Dealer Grid

FHC RIA Advisory Grid % 100% payout on RIA advisory (Planning paid at active advisory grid schedule)

IRS Social Security Cap ($) 12.4% SE SS Tax up to cap.

Expected Annual Practice Growth Rate (%) (Growth rate applies strictly to organic practice revenue acquisition, with recurring operating expenses scaling alongside growth while setup costs drop off after Year 1.)

Include First Heartland Performance Reporting First Heartland's tiered platform fee covers core trading and billing software, whereas the $192.50/mo add-on covers consolidated performance reporting and client portal software. Optional third-party tools (e.g., eMoney, Morningstar) incur separate out-of-pocket costs.

Future Business Entity & Tax Structure

1099 Sole Proprietorship / LLC (Standard Schedule SE Tax) Model a NEW S-Corporation as a potential transition option to evaluate tax efficiencies (e.g., FICA optimization) compared to W-2 or sole proprietor status.

I am already operating as an S-Corporation and will continue operating as an S-Corporation

Reasonable W-2 Officer Salary ($)

FICA tax (15.3%) applies only to this officer salary per IRS Rev. Rul. 74-44. Net profits above salary flow as 0% FICA S-Corp distributions.

💡 Net Income Cap: Officer salary cannot exceed practice net profit. If your entered salary exceeds practice earnings, it will automatically cap at 100% of net income.

Salary % of Net Income: 35% Illustrative Modeling Baseline (30-50%)

💡 Benchmark: First Heartland does not provide tax advice. IRS targets unrealistically low salaries (Rev. Rul. 74-44). Industry practice is 30%–50%. Review IRS S-Corp Guidelines and BLS Data with your CPA.

Estimated Effective State Income Tax Rate (%)

State income tax applied to practice net income when modeling an S-Corp.

Zero-tax state (AK, FL, NV, NH, SD, TN, TX, WA, WY)? Set to 0.0%

Local & Municipal Tax Districts: Recruits practicing in high-tax local jurisdictions (e.g., NYC, Philadelphia, Ohio RITA districts) should enter their combined state plus local/city income tax rate.

💡 PTET Strategy Note: Electing Pass-Through Entity Tax (PTET) at the S-Corp level may allow entity-level state tax payments to be deducted as business expenses, bypassing federal personal SALT deduction caps.

⚖️ CPA Mandate: Entity selection and tax elections depend on individual household filing facts. Candidates must consult an independent CPA prior to executing corporate state elections.

Highlight Potential Federal §199A QBI Deduction Shows a potential 20% deduction on qualified pass-through income. Financial services are Specified Service Trades or Businesses (SSTBs) under IRC §199A subject to strict IRS phase-out limits ($201,750–$276,750 Single / $403,500–$553,500 Joint taxable income). SSTB phase-outs evaluate total household taxable income (including spousal income), not practice profit alone. See IRS Code 199A.

Transition Assistance / Forgivable Loan

Upfront Loan Amount ($)

Loan Amortization Duration 5 Years

Active Comparison Generated Just Now

Transition Pro Forma Dashboard

Prepared for Candidate

💡 Hover any number for calculation tooltip

Mobile Executive Snapshot

Current Net $0

FHC Net $0

Advantage +$0

⚡ Explore 'What-If' Scenarios

Adjust these core levers to establish the sustainable foundation for your new practice.

Modeled Retention: 100%

100%

Office:

Staff:

§199A QBI (20%)

WHY TRANSITION? Primary Financial Advantage

Projected net income increase before federal income tax.

How Safe Is It? Risk Tolerance Required client revenue retention to match current income:

--% Break-Even

Current Firm Model

Status Quo

Gross Practice Revenue: $0

Firm Platform Fees / Markups: $0

Net Payout: $0

Practice Expenses & Staff: $0

Self-Employment / FICA Tax: $0

Current Net Income (Pre-Federal Tax): $0

First Heartland Model

FHC Model (1099)

Gross Practice Revenue: $0

Platform Fees / Markups: $0

Net Payout: $0

Practice Expenses & Staff: $0

Self-Employment FICA Tax: $0

FHC Net Income (Pre-Federal Tax): $0

Confidential Practice Review

Let's Walk Through Your Numbers

Book a quick 15-minute call to review your custom pro forma results and explore your transition options.

⚖️ Consolidated Regulatory & Tax Disclosure Notice

Best-Effort & Non-Binding Modeling: Projections are best-effort, hypothetical mathematical models provided solely for recruiting and practice evaluation. Calculations do not constitute formal tax, legal, or accounting advice. All outputs reflect observable IRS tax codes, FICA limits, and wage caps effective as of 2026.

Independent CPA Referral Mandate: Tax liabilities depend on individual circumstances, IRS guidelines, spousal income, and state tax elections. Candidates must consult an independent CPA or tax advisor prior to executing firm transitions or corporate entity elections.

📋 Recruiter Compliance Reminder: Delivery of the mandatory FINRA Rule 2273 Educational Communication detailing transition compensation conflicts is required upon initial contact with former clients. Mandatory Action

⚖️ FINRA Rule 2273 Transition Micro-Guide Regulatory Requirement

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🏛️ Securities and Advisory Registration: Securities offered through First Heartland Capital, Inc., Member FINRA/SIPC. Investment advisory services offered through First Heartland Consultants, Inc., an SEC Registered Investment Adviser. First Heartland Corporation is the parent company.

🏛️ Third-Party Non-Affiliation: Pershing LLC, AssetMark, SEI, Envestnet, and other referenced third-party platforms are independent entities and are not affiliated with First Heartland Capital, Inc. or First Heartland Consultants, Inc.

⚖️ Regulatory Disclosure & Tax Advice Disclaimer: This Pro Forma model provides non-binding hypothetical estimates for educational and recruitment evaluation purposes only and does not constitute an offer of employment or guarantee of future production. All outputs reflect best-efforts calculations incorporating observable IRS tax codes, FICA limits, and wage caps ($184,500 Social Security cap) effective as of August 2026. First Heartland Capital and its corporate affiliates do not provide formal legal, accounting, or tax advice; candidates are required to review all financial projections, QBI assumptions, and S-Corp entities with an independent CPA or tax counsel.

⚠️ State Tax Variability: State income tax calculations apply a uniform illustrative rate across both models. Individual state tax structures or Passthrough Entity (PTET) tax elections vary by jurisdiction and require independent CPA evaluation.

⚠️ Retention & Portability Risk: Client asset portability is subject to individual client consent, ACATs processing timelines, custodial approvals, the terms of the Protocol for Broker Recruiting (if applicable), and former firm non-solicitation covenants. Achieving 100% client retention is a theoretical maximum, not a guaranteed outcome.

⚠️ SEC Reg BI Material Conflict Disclosure: Transition compensation, enhanced payout grids, and upfront loan capital represent material financial conflicts of interest under SEC Regulation Best Interest. Transitioning advisors are required to disclose these compensation conflicts to clients when making recommendations.

⚠️ Variable Payouts & Fees: Modeled projections assume current broker-dealer and RIA payout grids remain static. Payout grids, platform fees, clearing costs, and administrative fees are not contractually guaranteed in perpetuity and are subject to change by First Heartland Capital.

⚖️ IRS Circular 230 & FINRA Rule 2210 Tax Disclaimer: To ensure compliance with IRS Circular 230 and FINRA Rule 2210, nothing in this pro forma model shall be construed as formal tax or legal advice. Projections are non-binding mathematical illustrations based on general tax parameters effective as of 2026. Candidates must consult an independent CPA.

⚠️ Forgivable Loan Contingencies: Upfront transition assistance and forgivable loans are contingent upon the representative remaining affiliated with the firm and meeting ongoing production requirements. Premature termination or failure to meet quotas will trigger a clawback, resulting in immediate repayment of the unamortized principal balance.

Practice Operating Pro Forma

Practice Operating Pro Forma — General Entity Concepts

Side-by-side mathematical breakdown separated by First Heartland corporate entities.

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Corporate Entity Revenue Routing & Tax Logic ExcelJS Formula & Entity Routing Audit • Capital (B/D): GDC × Grid % (='Pro Forma'!B10*B11). Fixed Annuities route through BD grid per FINRA NTM 05-50.

• Consultants (RIA): (AUM × Fee - Platform Fee) × RIA Grid % (='Pro Forma'!C18). Payout grid is 100% on advisory.

• S-Corp Flow: Net operating income passes through to entity. FICA applies strictly to Officer Salary (F13), leaving excess distributions exempt from 15.3% SECA.

• First Heartland Capital, Inc. (BD): Receives commission-based Gross Dealer Concession (GDC) and fixed annuity OBA revenues subject to BD grid payouts.
• First Heartland Consultants, Inc. (SEC RIA): Captures fee-based Rep as Portfolio Manager & TAMP advisory fees after deducting tiered platform fees.
• S-Corp / Entity Pass-Through: Net operating revenues flow to your pass-through entity, isolating FICA tax to Officer W-2 Salary and passing remaining profits at 0% FICA.

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CPA Discussion Checklist & Tax Strategy Prompts

Click to review entity choices, PTET elections, and retirement plan tax-sheltering prompts for your CPA review.

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Compliance Baseline

S-Corp Salary, §199A QBI & §162(l) SEHI Audit Prompts

3 Core Prompts ▾

Tax Strategy

Pass-Through Entity Tax (PTET) Workaround Evaluation

CPA Prompt ▾

If practicing under an S-Corp or Partnership structure, evaluate whether electing an entity-level Pass-Through Entity Tax (PTET) under IRS Notice 2020-75 captures deductible state tax expenses above federal personal SALT deduction caps.

State Eligibility & Deadlines: Does our operating state permit a PTET election, and what are the specific filing windows, estimated tax deadlines, and irrevocable election requirements? QBI Interaction Analysis: Does deducting PTET at the entity level reduce total Qualified Business Income (QBI), and does the federal SALT deduction offset exceed any resulting reduction in IRC §199A benefits?

⚠️ MANDATORY TAX & LEGAL DISCLAIMER: First Heartland, its affiliates, and recruiters are strictly non-tax and non-legal entities and do not provide tax, legal, or accounting advice. State PTET rules, tax rates, election windows, and IRS interpretations change frequently and vary significantly by state jurisdiction. All numerical projections in this modeler are hypothetical general entity concepts. You must consult a licensed CPA, tax professional, or legal counsel regarding your specific practice facts prior to executing entity elections or organizational agreements.

Wealth Acceleration

Pre-Tax Retirement Plan Optimization (401k / Cash Balance)

CPA Prompt ▾

Metric / Component	Current Firm	First Heartland

Wealth Transfer Analysis

Forfeited EJ Partnership vs. Independent Enterprise Equity

100% Asset Ownership

Edward Jones (Status Quo)

5-Yr Cumulative LP & Bonus Income: $0

Book Ownership / Equity Value: $0 (Un-sellable)

*Upon retirement at Edward Jones, your book transitions back to the firm or a successor with $0 capital gains payout for practice equity.

First Heartland (Independent Owner)

5-Yr Cumulative Net Income Gain: $0

Estimated Practice Enterprise Value: $0

💡 Valuation Methodology: Applies 2.50x to 100% recurring Fee-Based Advisory Revenue (Rep as PM & TAMP), plus a 2.06x blended multiple to all other practice revenue (accounting for standard industry trail vs. upfront mix).

ℹ️ Non-Recurring Capital Exclusion: Practice valuation estimates exclude one-time upfront forgivable loan capital and non-recurring transition packages to reflect organic recurring business equity.

⚠️ Valuation Risk Disclosure: Enterprise valuations are hypothetical and for illustrative purposes only. Actual practice buyout values are subject to open-market M&A conditions, buyer negotiations, client demographics, and transition structures. First Heartland Capital makes no guarantee regarding future practice saleability or exact market multiples.

Opportunity Cost Analysis

5-Year Wealth Lost by Staying Put:

Illustrative Reinvestment Rate on Net Earnings Difference (%): 5.0%

⚖️ FINRA Rule 2210(d)(1)(F) Corporate Business Pro Forma Disclosures:

1. Organic Practice Growth Assumptions: Multi-year opportunity cost projections model theoretical compounding practice growth based on user-supplied annual growth rates. Projections apply simple compound growth calculations to assumed variables and do not represent probabilistic Monte Carlo market simulations or guaranteed returns.

2. Net-of-Fees Framing: Projections are presented net of First Heartland platform fees and estimated advisory costs. Individual federal/state tax liabilities, state income taxes, and specialized product expenses will further reduce actual net realized practice revenues.

3. Hypothetical Business Model Disclaimer: IMPORTANT: This is a mathematical projection of hypothetical business revenue and practice growth. It does not represent a projection of personal investment performance, market returns, or a guarantee of future take-home income.

📈 5-Year Revenue & Advisor Income Growth Projection

Models compounding growth using your projected annual rate.

Metric Description	Year 1	Year 2	Year 3	Year 4	Year 5

✨ Annual Transition Advantage (First Heartland vs. Current)

Year-over-year net take-home difference.

Metric Description	Year 1	Year 2	Year 3	Year 4	Year 5

🏦 Forgivable Loan Amortization & Tax Schedule

Models declining principal, 4.5% AFR, and ordinary COD Income.

Year	Beginning Principal	Principal Forgiven	AFR Interest (4.5%)	Total Taxable COD Income	Ending Principal

⚖️ Tax & Clawback Disclosures:

IRC §61(a)(12) Ordinary Income: The total forgiven amount (Principal + AFR Interest) is treated as Cancellation of Debt (COD) and subject to ordinary federal and state income tax in the year forgiven.

IRC §1402 SECA Exemption: COD income from a bona fide loan is strictly exempt from Self-Employment Contributions Act (SECA) taxes and Medicare surtaxes.

⚠️ Clawback & Production Risk: Forgiveness is contingent upon remaining affiliated. Premature termination triggers a clawback, requiring immediate repayment of the unamortized ending principal balance.

⚖️ IMPORTANT COMPLIANCE & FINANCIAL DISCLOSURES

FOR FINANCIAL PROFESSIONAL / INSTITUTIONAL RECRUITING USE ONLY. NOT FOR PUBLIC OR RETAIL CLIENT DISTRIBUTION.

• Hypothetical Illustration Only: The multi-year projections, assumed rates of return, compound growth calculations, and cash flow models presented on this tab are strictly hypothetical in nature and provided solely for mathematical illustration. They do not predict, project, or guarantee future financial performance, investment returns, practice equity value, or net payout amounts.

• Assumptions & Market Variability: Projections are calculated using user-entered baseline data combined with an assumed illustrative rate of return. Actual business growth and market returns will fluctuate based on prevailing economic conditions, market volatility, client asset flows, platform fee adjustments, payout grid changes, and individual advisor performance.

• No Advice Rendered: This model does not constitute legal, tax, accounting, or investment advice. Transitioning a financial practice involves individual tax, legal, and operational considerations. Candidates should consult their own professional legal, accounting, and tax advisors prior to executing a firm transition or contract. Securities offered through First Heartland Capital, Inc. Member FINRA/SIPC. Advisory services offered through First Heartland Consultants, Inc.