401K Business Financing Pennsylvania

Are you an aspiring entrepreneur looking for financing to open a business in Pennsylvania? 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will have to pay a 10% penalty (if you are under 59 ½) and income tax which often leaves only 60% or less of the amount withdrawn available to fund your business.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 Articles of Incorporation  with the Pennsylvania Department of State.

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

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

Step 4: Pennsylvania 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:

Corporation Processing Times QUESTION:

How long does it take to register the ROBS 401k funded corporation with the state of PA?

ANSWER:

The standard processing for the Pennsylvania Secretary of State is typically 6 business days.   Our fee includes the fees charged by the Pennsylvania Secretary of State to file on a non-expedited basis.

Update Business Name QUESTION:

How do I updated the ROBS 401k funded C-corp address with the state?

ANSWER:

I have provided a link below to the form and instructions to make the appropriate changes with PA DOS.

Form: Change of Registered Office

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