Financing Your Business

Financing your business is usually a straightforward process. Commonly, individuals use one or a combination of savings, home equity, personal loans, bank loans, Small Business Administration loan guarantees, pledged collateral loans etc. These are common and understood by most.

Another more creative option is to fund your business by using your retirement funds. We can assist you, by referring you to one of our alliance partners, to engineer the right financing solution to meet your objectives.

You can use your 401(k), 403 (b), Pension, profit sharing, IRA rollover or other retirement plans to finance the purchase of a franchise or as start-up capital for your own business or to purchase business property with no taxes, no penalties, no loan repayment and no hassle.

This can be done without distributions, taxes, penalties, or the use of loans. Your own money can be used as venture capital to avoid loans, fees and interest. These transactions are clearly within the letter of the law as spelled out in the Employee Retirement Income Security Act of 1974 (ERISA), and our partners have more than twelve years experience setting up these rollover stock ownership plans. Our partners have never had a problem with the IRS and our partners will obtain a letter approving the use of these funds in this way.

The IRS has established numerous rules to keep future retirees from spending the funds held in trust today and awaiting them at retirement. Distributions are taxed as ordinary income—upwards of 50%. Our partners, using some of the provisions of ERISA, have developed a way to legally move money locked in 401(k) or other IRA rollover accounts directly into a new or established business without distributions, taxes, penalties or the use of loans. The money may be used for franchises, property, equipment or working capital.

When you are ready to move toward your goal of business ownership, and use of your retirement funds for this purpose are in your best interest, our partners can make it happen.

The Freedom Franchise Alliance, LLC