What is a 1099 affiliation in the context of a Registered Investment Advisor (“RIA”)?

Definition: A “1099” refers an IRS tax form, but in the wealth management industry it typically refers to a financial advisor who has affiliated with a firm on a “1099” independent contractor basis, vs a “W2” employee basis.

When used in an RIA context: “The financial advisor decided to join an RIA where they would affiliate as a 1099 advisor of the firm.”

See also: Episode 138, W2