Get Started Today
Congratulations! We’re excited to see that you’re ready to take the next steps!
Please find below all of the information you will need to get started.
This is an exciting first step towards making your dreams a reality!
Please see the 3 simple steps to get started on your journey. If you have any questions along the way, please contact us at (866) 693-7767 or email us at firstname.lastname@example.org.
We will need to establish a Corporation for you. 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.
If you already have an existing Corporation you would like to use, please move onto Step 2.
After a Corporation has been established, we will need to set up the ERSOP® Plan for you.
If you already have an existing Corporation you would like to use, please complete the ERSOP Questionnaire. 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. PLEASE NOTE: With an existing Corporation, there will likely be additional fees and costs depending on the degree of complication and revision that will need to be done.
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 “in-service 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. ERSOP® 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.
Once your business has been funded, you may be wondering what the next steps may be.
The ERSOP® plan will require administration, allocations, trust accounting and federal government reporting (Form 5500) every year. We charge $990+ 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 Corporation will also require administration (Form 1120) that will need to be filed. ERSOP® does not handle the Corporation’s side of taxes. This will need to be handled by your accountant. If you currently do not have an accountant we will be happy to find a referral in your area.
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.
Do I Qualify?
Want to find out quickly whether or not you qualify before spending your time filling out forms or calling us?
Determine the questions below to find out whether or not ERSOP® will work for you:
You Want to Do One or More of the Following:
> Start A Business
> Buy A Business or Franchise
> Expand an Existing Business
> Dive into Real Estate
Your Money is One of the Following:
> 401(a) Pensions, Profit Sharing, Thrift & Savings, Stock Bonus, ESOPs
> 401(k), 401(k) Roth Accounts
> 403(b) “Teachers Annuities” – (Government Plans Only)
> U.S. Gov. Thrift & Savings
> IRAs: Traditional IRAs, Rollover IRAs, SEPs, & SIMPLEs
You Have a Minimum of $50,000 In Retirement
*Please note, there could be exceptions to this. If this is the only factor disqualifying you, please contact our office to ensure there are not other options available to you.
If you answered yes to all of those questions, then you qualify! If you’re ready to move forward please refer to the information to the left. If you still have additional questions you may find more answers below, or you may call us at (866) 693-7767.
What If I'm Still Employed?
If you are employed and plan to terminate soon, this shouldn’t be a problem. However, if you are still employed and not planning to terminate, this can differ from employer to employer. Some employers offer “In Service Distributions”, allowing you to use the money. Other employers do not want to release the funds, this is also known as ‘golden handcuffs’.
Is There a Certain Age I Have to Be Before I Can Do This?
No. Age is not a factor in the qualification process.
Is This Legal?
Yes! ERSOP is also known as ROBS to the IRS. All of our plans come with an IRS approval letter to back this up. Please refer to www.ersop.com/thelaw where we cover the legality more in-depth.
What If I Get Audited?
The chance of getting audited is very rare. Sometimes the IRS will produce an audit at random, however, they only occurr on few occasions and we are always there to back our clients up in the event an audit ever occurs. We keep detailed records of every step taken, in order to ensure that we have everything we need to present on your behalf. We have a $1,000 plan audit retainer fee that we implement upon you receiving an audit notice. We are passionate to defend our clients in these types of events.