Here is a typical service scenario. This will give you an idea as to how the ERSOP process will go. Your individual situation may be unique and this process will be adjusted to suit your particular needs.

First: The Corporation


Online Incorp. Form

New Corporation: Please complete the Incorporation Questionnaire. Then, upon receipt of your check or credit card payment we will create your new C—Corporation and file an IRS Form SS-4 to apply for a Federal Taxpayer Identification Number [TIN]. This can be accomplished in a day or two in most states. With your Articles of Incorporation [corporate charter], authorizing resolution and corporate TIN, your bank will open a corporate checking account for you.

Existing Corporation: We will need to see copies of your Articles of Incorporation, resolutions and the SS-4 form if possible. Depending on many factors, your Articles may need to be amended. If there is an existing qualified retirement / 401(k) plan, we will need to review the documents and filings. If the corporation has elected S Corp status, a revocation probably will be in order. There may be additional fees and
cost depending on the degree of complication.
Please proceed and complete the ERSOP Questionnaire Form following next below.

Second: The ERSOP® plan


Online ERSOP Form

Printable ERSOP Form

Existing Corporation: Complete the ERSOP® Questionnaire, e-mail or fax it to our office [with a copy of the Articles of Incorporation and IRS form SS-4, if applicable]. We will then prepare the adoption documents for your Profit Sharing Plan and Trust. We will FedEx to you the signature pages along with a return FedEx envelope. Upon our receipt of the return FedEx envelope containing the signature pages, we will assemble the documents and FedEx them back to you in your new plan records binder. We will secure an additional Fed TIN for your new Plan’s Trust. With your new plan documents, corporate resolutions and Trust TIN, your bank will open a checking account for the Trust. This takes 3 FedEx days and nights. We may then submit your plan to the Internal Revenue Service for a Favorable Determination Letter. There is a $300 IRS filing fee, which may be waived if there is at least one non-highly compensated employee.

Third: The Rollover



In order to be eligible for a rollover from your employer’s retirement or 401(k) plan, you generally must have terminated employment with that employer. However, some employers offer some form of an “inservice distribution.” Larger employers make rollovers available within 30 days. If you are still employed, you should inquire now into your employers’ distribution policy with its human resources / benefits department. We will assist you in preparing any forms to secure the “direct rollover” of your retirement assets into your new Trust checking account.

Occasionally, some IRA custodians require special forms and signature guarantees. You, as trustee, will transfer money from the Trust checking account to the corporate checking account. Your new corporation will issue shares of its stock to the Trust. SDCC will prepare these certificates for you. The corporation will now have cash in the bank and no debt. Your debt free, cash rich corporation will be an attractive borrower.

Then: Annually

The ERSOP® plan will require administration, allocations, trust accounting and federal government reporting (Form 5500) every year. We charge $900+ annual fee. Each corporate / plan year end, we will estimate the tax deductible contributions that you can make to what will become your favorite IRS “qualified” tax shelter.

The IRS will assess a $25 per day penalty for failure to timely file the Form 5500 to a maximum of $15,000 each year. The due date of the return is 7 months, plus a 2 and 1/2 month extension, after the Plan / Corporation year end. For a December 31 year end the due date is the last day of the next following July which may be extended to the 15th day of the next following October. * All FedEx Packages will be sent to the address on your questionnaire, “No Signature Required” unless otherwise requested.

Our Agreement and some advice


Engagement Agreement

Magic Words

Our Engagement Agreement along with this typical Scenario comprise our agreement with you. You may use these Magic Words to contact whomever is currently holding your funds (your prior employer, IRA custodian, broker, etc.) and ascertain just how long it will take to get those funds to move. If you experience difficulty we will assist you in a conference call with them. If you are currently employed and do not wish to tip you hand that you may be leaving, contact someone who has recently terminated with that employer and ask them how long it took to receive their rollover.

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Use YOUR 401(k) or IRA Rollover Assets to Finance:

YOUR Existing, Start-up, or Franchise Business

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