NAFEP

You can finance your own business, start a business or buy into a franchise using your 401(k) without paying taxes, penalties, interest or even debt! The benefits are "Simply Amazing! And yet still, very easy to understand!"

If you've ever tried to finance a business or finance a franchise you know that the number one problem and reason for not getting started is lack of funding. NAFEP helps small business start ups and franchises through its mySOP program.

A Employee Stock Ownership Plan, referred to after this as mySOP is a form of a 401(k) plan setup for your own C-corp. The mySOP's purpose is to purchase the shares of your own C-corp. This structure is designed to get cash from a 401(k) or IRA into a corporation. This is necessary in order for start-ups, small businesses or cash strapped companies to tap cash from employee pension accounts.

Benefits of the financing a business or franchise with the mySOP

1. Bank of yourself - You are investing in yourself and your business. This is a debt free way of starting your business
2. Improves cash flow - The mySOP program does not place debt servicing requirements on your new business which improves cash flow.
3. Tax Deferred Growth - capital appreciation and growth of the business is tax deferred for the retirement plan
4. Penalty Free - Eliminates many of the prohibited transaction problems when running a business when using retirement funds
5. Combine with other funding - Allows for traditional and SBA lending
6. Increase retirement deferrals - 401k plans have much higher contribution limits so you can build your retirement plan

How to finance a franchise or business with the mySOP

1. Create a C-Corp
2. Establish the mySOP
3. Roll money into the mySOP (from a IRA or former employer's 401(k))
4. Purchase shares of your C-Corp. This places the cash inside of the business

Business finance strategies for using the mySOP

• Purchase real estate when only recourse loans are available
• Provides cash for starting a business and/or financing a franchise
• Provide capital for a struggling or cash poor business

What Your Plan Comes With

• Setup of C-Corp
• Filing of state articles by NAFEP
• Filing for Corp EIN with IRS by NAFEP
• C-Corp bylaws
• Setup and operating guide
• Stock certificates
• Meeting Records (initial and annual)
• Banking authorizations for checking account
• Creation of 401K plan documents
• Filing of 401K EIN
• Favorable determination letter from IRS
• Complete set of plan documents with all necessary forms and guides
• Assistance and guidance in the rollover of current plan to new self directed plan
• Assistance and guidance in setup of checking account or use our partner Chase Bank
• Unlimited pre and post setup consulting for plan setup and operation