ERSOP® Services & Fees
We list the fees for our services on our website because we believe that you should be able to know the costs up front for starting and maintaining the ERSOP® Plan. If you have any questions about our fees or services, please contact our office at (866) 693-7767. You may also refer to the FAQ’s toward the bottom of the page.
Initial Consultation
Find Out if You Qualify- We provide free consultations to ensure that what we do will work for you and what you want to do! This is about YOUR business.
ERSOP® Plan Establishment
Most States, Most Clients- Additional fees relating to the ERSOP® Plan are listed below:
- • Without Existing C-Corp: $5,200
- • Pr-Existing C-Corp or S-Corp: $5,200 + $1,500 (+)
- • Existing S-Corp Revocation: $500
- • Per Each Additional Adopting Employer: $1,000
- • Amendments to Plan Documents: $750
- • IRS Plan Audit Retainer, (if and only if you receive an IRS audit notice.): $1,000
Annual Administration
Our Annual Fee For Filing the 5500 Tax Form- Additional fees relating to Administration are listed below:
- • Late Filing Fee (Extension): $85
- • Per Each Additional Adopting Employer: $100
- • Per Participant Accounts More Than 5: $40
- • Participant Terminations/1099-R & 1096: $250 Initial Form, $100 Subsequent Forms
- • Participant Loans: Set-Up – $100, Yearly Maintenance – $50
- • Amendments to Administration: $500
- * Please note: The $1,200 administration fee includes up to 4 hours of trust accounting. Most clients do not require more than this. Any plan exceeding 4 hours will be charged an additional fee at the hourly rate of the administrator performing the service.
Does ERSOP Charge Commision Fees?
No! And nobody else should be doing it either. ERISA states that the transaction is exempt from being a prohibited transaction “if no commission is charged with respect thereto . . .” to which the IRS adds “to or from a ‘disqualified person’.” We are defined in the Internal Revenue Code as a “disqualified person” because we provide services to the plan. If the IRS found during an examination (IRS audit) of your plan that we had paid or received a commission by any name, the IRS could assert the investment of the funds into the stock of your new corporation was a distribution subject to taxes and penalties. A franchisor must disclose any commissions paid or received in its FDD and if it is so disclosed in the FDD it would thereby be disclosed to the IRS. Therefore, anyone who pays or receives a commission in respect to establishing these plans are putting their clients at risk with the IRS.
Why Does ERSOP Charge a Flat Fee?
Because ERISA states that the transaction is exempt from being a prohibited transaction “if no commission is charged with respect thereto . . .” If we charged a variable fee instead of a flat fee for service, the IRS could assert that the variable fee was a commission, and therefore the investment of the funds into the stock of your new corporation was a distribution subject to taxes and penalties.
Do I Have to Use Your Administration Services?
No! You can use another administrator if you would like, in order to file your 5500 forms. We do not lock you into any fees. However, we strongly advise letting us handle this part for you because we can ensure this is being done correctly. This will help avoid audits, make things easier for you, and save you money in the long run when you are ready to implement the Exit Strategy.
Can I Reimburse Myself for Anything?
Yes! After you have your money in the Corporate bank account, some of the first checks you should write should be to yourself in order to reimburse yourself for any start-up expenses, including the $5,200 and other fees involved with CPA’s or Attorney’s, etc.
Can I Pay Online?
Yes. You may pay by going to ERSOP.com/Pay