What is a FranPlan?
FranPlan is the trademarked name for the FranFund Retirement Plan Rollover Program, known by the IRS as a Rollover For Business Start-ups (ROBS) Program. Such programs, which are governed by the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code of 1986 (IRC), have been used to fund many businesses under $250,000, either in full or as the personal cash injection for a Small Business Administration loan.
As a qualified retirement plan sponsored by your new corporation, a FranPlan meets the requirements of the IRC and is eligible to receive certain tax benefits. This new 401(k) Profit Sharing Retirement Plan (your FranPlan) will be a shareholder of your new corporation.