The 401k Business Financing Process

Our Harvard Law-trained attorney and compliance officer are involved from beginning to the launch of your 401k business financing plan including:

The 401k Business Financing Process

The Rules

Explain the rules and regulations surrounding the 401k business financing process.

Formation of a New C-Corp

The corporation documents are drafted and filed with the secretary of state.

Adoption of a New 401k Business Financing Plan

The 401k plan allows for the purchase of employer stock (i.e., shares of stock in a C-Corporation).

IRS Employer Identification Numbers (EIN)

Obtain employer identification numbers (EINs) for the corporation and the new 401k business financing retirement plan.

Bank and Brokerage Accounts

Set up the 401k brokerage account for holding the retirement funds and a business bank account for holding the Corporation funds.

Fund the 401k Business Financing Plan

Fund the 401k business financing plan by transferring former employer retirement funds (former employer 401(k), 403(b), TSP, IRA, etc.) to the new brokerage account.

Purchase Employer Stock

The funds are wired from the 401k business plan to the Corporation bank account and stock certificates are subsequently issued along with the rest of the corporaiton documents (e.g., bylaws, meeting minutes, etc.).


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