Fee-Only Fiduciary Advisory
Fee-Only Financial Advisor in Pittsburgh for Business Owners and Founders
Defiant Capital Group is an independent, fee-only registered investment advisor in Pittsburgh built specifically for founders, business owners, and entrepreneurs navigating equity compensation, liquidity events, and integrated tax strategy.
What Fee-Only Means for Business Owners
What Is a Fee-Only Financial Advisor?
A fee-only financial advisor is compensated solely by the client, through a transparent fee structure, and never through commissions, kickbacks, or product-based compensation. This model is designed to reduce certain compensation-related conflicts of interest that can arise when an advisor earns more by recommending specific products. Fee-only advisors are held to a fiduciary standard, meaning they are obligated to act in the client's best interest at all times.
For business owners and founders, the fee-only model matters more than for most clients. Entrepreneurial wealth is concentrated, episodic, and tax-sensitive. An advisor whose compensation depends on selling a product may have an incentive to recommend solutions that generate commissions rather than solutions that address the founder's actual situation. Fee-only advisors can reduce that structural tension, though conflicts of interest may still exist in other forms.
Defiant Capital Group operates as an independent, fee-only registered investment advisor. The firm is not affiliated with a broker-dealer, insurance company, or product manufacturer. Jonathan Dane, CFA, CFP, leads the firm as Managing Partner and Chief Investment Officer.
Fee-Only vs. Fee-Based: The Distinction That Matters for Founders
| Feature | Fee-Only | Fee-Based |
|---|---|---|
| Compensation source | Client fees only | Fees plus commissions |
| Fiduciary standard | Always held to it | May vary by transaction |
| Product sales | None | May earn commissions |
| Conflict structure | Can reduce compensation-related conflicts | Product incentives may exist |
Fee-based advisors can still act in client interests; the distinction is structural, not a judgment of character. Conflicts of interest may exist in any advisory relationship regardless of compensation model.
Why Founders Need a Different Advisor
The Financial Life of a Founder Is Fundamentally Different
Most advisory firms in Pittsburgh are built around retirement savers: professionals accumulating wealth steadily through W-2 income and 401(k) contributions. Defiant Capital Group was built around founders, entrepreneurs, and business owners whose wealth is tied to equity, shaped by exits, and complicated by the success they worked to create. That structural difference changes the planning entirely.
Concentration Risk
The majority of a founder's net worth may sit in one company. Diversifying without triggering a significant tax bill requires planning that begins years before a transaction closes. Acting too late may limit available options.
Liquidity Event Timing
The structure of a sale, earnout, or equity rollover has lasting tax consequences that post-close planning cannot fully undo. The window to act is narrow and front-loaded, and misjudging it may be costly.
QSBS and Advanced Structures
Qualified Small Business Stock under Section 1202 may allow founders to exclude significant capital gains at the federal level. QSBS stacking can multiply that exclusion across trusts and family members, though Pennsylvania does not conform to the federal exclusion, which adds complexity for Pittsburgh-based founders.
Equity Compensation Complexity
ISOs, NSOs, RSUs, and 409A valuations each carry distinct tax treatments, AMT implications, and exercise timing decisions that interact in ways most advisors do not map. Errors in timing may create irreversible tax outcomes.
Pennsylvania Tax Traps
Pennsylvania taxes capital gains as ordinary income at a flat 3.07% rate with no preferential long-term rate, does not conform to the federal QSBS exclusion, prohibits spousal loss netting, and allows no capital loss carryforwards. PA-specific planning is essential for Pittsburgh founders.
Succession and Exit Planning
Whether selling to a third party, transferring to family, or stepping back from operations, the structure of the exit can significantly affect after-tax proceeds. Succession planning typically requires three to seven years of lead time.
The Atlas Framework
A Discipline Built for Founders, Not a Process Built for Everyone
The Atlas Framework is the five-pillar wealth management discipline Defiant Capital Group applies to every client relationship. Each pillar is designed to address a dimension of entrepreneurial wealth that generic advisory processes often overlook.
The framework is not a checklist or a template. It is a discipline applied simultaneously across all five pillars, every year. The goal is to coordinate decisions across architecture, taxation, liquidity, allocation, and succession so that no single dimension operates in isolation.
Schedule a ConsultationArchitecture
Entity structuring, asset titling, ownership design, and beneficiary designations that determine whether wealth survives a liquidity event, a lawsuit, or a generation.
Taxation
A lifetime tax lens across income, investments, estate, and entity structure. Designed to reduce tax drag, not just file returns. Trade-offs may apply depending on individual tax situations.
Liquidity
Cash flow planning that aligns liquid assets with obligations and opportunities, so that a founder is never forced to sell the wrong asset at the wrong time.
Allocation
Portfolio construction that combines public and private market investments, designed for resilience across market cycles. Allocation decisions depend on individual risk tolerance and time horizon.
Succession
Business transition, estate transfer, and governance planning that prepares the next generation. Succession outcomes depend on family dynamics, business structure, and timing.
Pennsylvania Tax Specialization
Why Pittsburgh Founders Need PA-Specific Tax Planning
Pennsylvania's tax code differs materially from the federal system and from most other states. Founders who apply generic federal planning to a Pennsylvania liquidity event may encounter unexpected state-level tax exposure that reduces after-tax proceeds. Defiant Capital Group integrates Pennsylvania-specific considerations into every planning engagement.
- A Pennsylvania taxes all capital gains as ordinary income at a flat 3.07% rate, regardless of holding period. There is no preferential long-term capital gains rate at the state level.
- B Pennsylvania does not conform to the federal QSBS exclusion under Section 1202. Gains that may be excluded federally can still be taxed at 3.07% at the state level, meaning a Pittsburgh founder's after-tax outcome depends on state-aware planning.
- C Stock installment sales are fully taxed in Year 1 in Pennsylvania. The installment method is prohibited for intangible property, which means a founder receiving an earnout note may owe state tax on the full gain immediately.
- D Pennsylvania does not allow spousal loss netting on a joint PA-40 return, and net capital losses expire completely on December 31 with no carryforwards allowed.
For pass-through entity owners, the PTE election can serve as a workaround for the federal SALT deduction cap, though it requires careful coordination with overall tax planning.
Source: Pennsylvania Department of Revenue; confirmed as of June 2026. State tax rules are subject to change. Consult with a qualified tax advisor for your specific situation.
How Defiant Capital Group Differs from Generic Pittsburgh Wealth Management
Founded by entrepreneurs, not by a bank.
The Defiant Capital Group team have personally navigated financial complexity as founders and business owners. This provides a unique ability to help other founders navigate similar issues.
QSBS stacking and trust planning expertise.
Extensive experience around QSBS for founders, including helping founders understand the 2-year rule, 5-year hold, and stacking strategies across multiple trusts.
Access to private market investments.
Defiant Capital Group provides access to private equity, venture capital, and direct investment opportunities typically reserved for institutional investors.
Integrated tax, estate, and investment strategy.
Rather than treating investments, taxes, and estate planning as separate workstreams, the Atlas Framework coordinates all five disciplines simultaneously.
What to Look For
How to Choose a Fee-Only Financial Advisor in Pittsburgh
Selecting a fee-only financial advisor as a business owner or founder requires looking beyond credentials and fee structure. The following criteria help identify an advisor whose expertise matches the complexity of entrepreneurial wealth.
1. Verify Fee-Only Status Independently
Ask the advisor to confirm in writing that they receive no commissions, no kickbacks, and no third-party compensation of any kind. Check the advisor's Form ADV Part 2, which discloses compensation arrangements. You can verify registration through the SEC's Investment Adviser Public Disclosure database.
2. Ask About Founder-Specific Experience
Ask whether the advisor has worked with founders before, during, and after liquidity events. Request examples of planning situations involving QSBS, equity compensation, and business sale structuring. The advisor should be able to explain these concepts clearly without relying on generic talking points.
3. Confirm Fiduciary Commitment
A fiduciary is legally obligated to act in your best interest. Ask the advisor whether they are willing to acknowledge their fiduciary duty in writing. Independent RIAs are generally held to a fiduciary standard under the Investment Advisers Act of 1940.
4. Evaluate Pennsylvania Tax Knowledge
Ask the advisor to explain how they've helped clients work through Pennsylvania capital gains, QSBS, and installment sales. If the answer is generic or references only federal rules, the advisor may not have the state-specific depth that Pittsburgh founders need.
5. Assess Integration Across Disciplines
Ask how the advisor coordinates investment management with tax planning and estate strategy. If investments are managed by one team, taxes by another, and estate planning by a third with no coordination, the founder may be paying for siloed advice that misses interaction effects.
6. Understand the Fee Structure
Fee-only advisors typically charge a percentage of assets under management, a flat retainer, an hourly rate, or a project-based fee. Ask for a clear explanation of what the fee covers, how it is calculated, and what services are included versus billed separately.
Frequently Asked Questions
Frequently Asked Questions About Fee-Only Financial Advisors in Pittsburgh
Common questions from business owners and founders evaluating fee-only advisory services in Pittsburgh.
What is a fee-only financial advisor?
A fee-only financial advisor is compensated exclusively by client-paid fees and receives no commissions, kickbacks, or third-party compensation. This structure is designed to reduce certain compensation-related conflicts of interest. Fee-only advisors are typically held to a fiduciary standard, meaning they are obligated to act in the client's best interest. Fee-only is distinct from fee-based, where an advisor may earn both fees and commissions.
How much should a fee-only financial advisor cost?
Fee-only advisors typically charge based on a percentage of assets under management (commonly 0.5% to 1.5% annually), a flat retainer, an hourly rate, or a project-based fee. The appropriate cost depends on the complexity of the client's situation, the scope of services included, and the advisor's expertise. Prospective clients should request a clear written explanation of fees before engaging any advisor.
What is one potential drawback of using a fee-only financial advisor?
One potential drawback is that fee-only advisors may have minimum asset or income thresholds that exclude smaller accounts. Additionally, the fee-only model reduces compensation-related conflicts but does not eliminate all conflicts of interest. An advisor may still have biases toward certain strategies, asset classes, or service providers. Clients should ask about all potential conflicts, not just compensation-related ones, and review the advisor's Form ADV for full disclosure.
Are fee-only financial advisors worth it?
Whether a fee-only advisor is worth the cost depends on the client's financial complexity, the value of the planning provided, and the client's ability to evaluate and implement advice independently. For business owners and founders with concentrated wealth, equity compensation, and pending liquidity events, the cost of specialized advice may be modest relative to the tax and structural consequences of acting without it. For individuals with straightforward financial situations, the value proposition may differ. Prospective clients should evaluate the advisor's expertise against their specific needs.
What is a red flag for a financial advisor?
Common red flags include pressure to act quickly without explanation, recommendations that prioritize specific products without clear rationale, inability or unwillingness to explain fees in writing, lack of fiduciary acknowledgement, and vague answers about credentials or registration status. For founders, an additional red flag is an advisor who cannot discuss QSBS, capital structure, estate planning, equity compensation, or Pennsylvania-specific tax rules when asked. A lack of founder-specific experience does not necessarily indicate a bad advisor, but it may indicate a poor fit for an entrepreneur's needs.
Is Defiant Capital Group a fiduciary?
Yes. Defiant Capital Group is an independent registered investment advisor. As an RIA, the firm is held to a fiduciary standard under the Investment Advisers Act of 1940, meaning it is legally obligated to act in the best interest of its clients. The firm's advisors hold the CFA and CFP designations, which impose additional ethical and professional obligations.
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Your Business Did Not Grow on Generic Advice
If you are a business owner or founder in Pittsburgh evaluating fee-only financial advisory services, schedule a consultation with Defiant Capital Group. We work with entrepreneurs navigating equity compensation, pre-liquidity planning, business sales, and post-exit wealth strategy. From our office in Pittsburgh, we serve clients across and throughout the United States.