401K Business Financing Connecticut

Are you an aspiring entrepreneur looking for financing to open a business in Connecticut? If so, you may want to consider using our 401k Business Financing plan which allows you to invest your retirement funds in your business without paying taxes or penalties.

Benefits of 401k Business Financing Plan (Rollover as Business Startup (ROBS))

  • You can invest all of your retirement funds in the business without paying taxes or penalties. If you were to withdraw the funds from your retirement account, you will have to pay a 10% penalty (if you are under 59 ½) and income tax which often leaves only 60% or less of the amount withdrawn available to fund your business.
  • The funds invested in your business do not have to be paid back to your retirement account (i.e., it is not a loan).   With no repayment obligation, the business is able to keep more of the income in the business which can be very important to a growing startup business. Moreover, by investing your own funds you are able to independently fund your business and retain ownership and control.
  • There is no credit check required to access your retirement funds.
  • The funds are typically available for business financing in 10-15 business days.
  • Other than Roth IRA accounts, funds in virtually all types of retirement accounts are eligible including 401k, Traditional IRA, pension plans, government plans, etc.

Process

Step 1: File Certificate of Incorporation with the Connecticut Secretary of State.

Step 2: Obtain Corporation and 401k employer identification numbers (EIN).

Step 3: Open business bank account for the Connecticut corporation.

Step 4: Connecticut corporation adopts new 401k plan.

Step 5: Transfer funds from your existing 401k, IRA or other retirement account to the new 401k.

Step 6: Fund the Corporation with the new 401k proceeds.

Other resources:

Timing of ROBS 401k Corporation Connecticut Registration QUESTION:

How long does it take to register the Corporation with the Connecticut secretary of state that will be funded with my ROBS 401k?

ANSWER:

Our fee includes the fees charged by the Connecticut Secretary of State to file on a non-expedited basis.  Processing times to file on a non-expedited basis are 7-10 business days.  For an additional $50 fee (charged by the sec. CT of state), the document can be processed within 24 hours.

Filing a DBA For ROBS 401k C-Corp in Connecticut QUESTION:

How do I file for a DBA in Connecticut for my ROBS 401k funded Corporation?

ANSWER:

Below is a summary of a findings of steps to register a DBA for a corporation in Connecticut. Do not take these steps until the corporation has been formed.
 
Please note that the DBA needs to be filed with the town clerk rather than the State per our research. 

Step 1)  Verify Your DBA Name

 

In order to move through the DBA filing process in Connecticut, you need to make sure that your desired trade name is available. You can conduct a name search through the Secretary of State website to find out if your ideal name has already been taken by an existing Connecticut business.If this is the case, you’ll need to modify your name enough to be distinguishable. You can achieve this by:

  • Changing the spelling of the name
  • Rearranging the words in the name
  • Making the name possessive
 
Step 2)  Download & Complete Registration Form
 

Once you’ve found your perfect name, you’re ready to fill out the DBA registration form. This form will ask for information like:

 

  • Your desired business name
  • Your business license number (you will not be able to apply without a valid Connecticut business license)
  • Your Connecticut tax number (or TRN)
  • Your business type (sole proprietorship, partnership, Corporation, etc.)
  • Your business’ street and mailing address
  • The name and mailing address of the business owner(s)
  • The business owner’s signature

Filing a Connecticut DBA is a little trickier than other states because you need to file with your local town clerk rather than with the state. Unfortunately, there’s no single document that works for every city in Connecticut. However, most town clerks have websites, and some even allow you to file online.

For example, if you’re planning to file in Stamford, you can obtain the proper form through the town clerk website (Glastonbury Town Clerk Website). You’ll fill out the form online, but to actually submit it you’ll have to print it out and either mail it or physically bring it to the specified location. Again, the process and associated fees vary from city to city.

To find the right form for your locale, do a Google search of your town name and “DBA registration form.” Somewhere on the first page of results, you should find the proper form through the town clerk’s website.

Step 3) Submit Online or Mail-In
 
Again, the DBA filing process varies based on your locale. Some townships offer online filing options, but many require you to mail the form in. Make sure to closely follow the instructions provided on your town clerk’s website.

Keep in mind that the filing fee varies as well. That said, in most areas, it’s pretty inexpensive — typically somewhere between $5-$10.

 

  • We’re here to help.

    Call: 800-489-7571

    Monday-Saturday

    7:00 am - 5:00 pm PT

    Why us?

MENU