My Solo 401k Financial has helped individuals use our 401k Business Financing plan to finance the costs & fees of a UPS Store Franchise with their retirement funds without paying taxes or penalties.
UPS Franchise Review
A UPS Store Franchise offers the following services at Traditional and Non-Traditional locations:
- Shipping
- Packaging
- Postal
- Similar business and communication services
UPS Franchise Cost | UPS Store Franchise Cost
According to the 2016 UPS Store FDD Franchise Disclosure Document, the cost to start a UPS Store Franchise will include the following if you are opening your first single location:
- Total Investment: The total investment necessary to begin operation of a Traditional (non-Rural and non-Veterans) Center is $159,224 to $434,521. The total investment necessary to begin operation of a Rural Center is $130,849 to $273,702.
- Initial Fees: The total investment necessary begin operation of a Traditional (non-Rural and non-Veterans) Center includes $36,850 to $58,250 that must be paid to the franchisor or affiliate. The total investment necessary to begin operation of a Rural Center includes $25,250 to $31,050 that must be paid to the franchisor or affiliate.
- Veteran Discount: Qualifying veterans and spouses of active duty military receive $10,000 off the franchise fee of a new The UPS Store location and 50% off the initial application fee (applied toward the total franchise fee). Learn more HERE.
- Learn more abut a UPS Store Franchise HERE
Use Your 401k to Start a UPS Franchise Business
If you an aspiring entrepreneur looking for financing to open a UPS Franchise, 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 Using Your 401k to Start a Business
- 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will have to pay a 10% penalty (if you are under 59 ½) and income tax which often leaves only 60% or less of the amount withdrawn available to fund your business.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 approximately 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.
Using Your 401k to Start a Business – Steps in the Process
Step 1: File Articles of Incorporation with the Secretary of State.
Step 2: Obtain Corporation and 401k employer identification numbers (EIN).
Step 3: Open business bank account for the C-corporation.
Step 4: The C-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.
