Open Solo 401k in One Day | Change in Business Type

QUESTION 1: What’s the shortest time to get a Solo 401K set up?

ANSWER: We can expedite it and thus open it up by early this afternoon including the bank account at Wells Fargo for the solo 401k if your client fills in the on-line form this morning and pays on-line.

QUESTION 2: Also, if we pick a random name now, can we change it later on once the entity is registered? The client is still trying to decide what the name of his business will be.

ANSWER: Yes; therefore, I recommend using a fictitious name when naming the solo 401k—a name that is not associated with the name of the company sponsoring the solo 401k nor the solo 401k trustee’s name. Thus, you will not have to deal with changing the solo 401k name later, which entails formally a submitting a name change to the IRS.

QUESTION 3: Finally, if we set it up under his sole proprietorship and he later on the business owner decides to register an LLC, can the solo 401k be transferred to the LLC if it’s the same business now operating as an LLC?

ANSWER: Actually, as long as keep the same business name, no formal name change or update will need to be filed with the IRS. Reason being, when establishing the EIN for the Solo 401k via the IRS website the applicable inquiry field only asks for the main name of the business, not whether it is structured as an LLC, Corporation, GP, LP or Sole Proprietorship.

Thanks, DJ, CPA in Florida

About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>

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