If you’re ready to quit your job in corporate America, follow your dreams and launch your small business startup, you will most certainly need funding. Most small business startup owners use their personal savings to launch their business. However, if you have a retirement account such as a 401K or IRA, and you want to preserve your personal savings, there is a way you can fund your small business startup with your retirement account.
How It Works: Using Your 401k or IRA to Fund Your Small Business Startup
Through a method called “Rollovers for Business Startups” (ROBS), entrepreneurs with qualified retirement accounts (e.g. a 401k or IRA) can use their retirement funds to launch a small business startup. The great news is that it can be done without having to pay tax on the money. For example, with a 401k, the first step is rolling it over to your new small business startup. After that’s done, your new 401k plan purchases shares of the small business startup. The funds used to purchase shares can be used as capital to launch and grow your small business startup! It’s that simple. You get to launch your small business startup with your money which means your business will be debt free. You have total control.
How LenCred Can Help You Get Started
LenCred has been working with one of the top companies in the industry for many years to help entrepreneurs like you use their retirement funds to launch their small business startup, after years of working in corporate America. If you’re convinced that this may be the best way to fund your business or you need more information to determine if it’s the best route for you, contact a LenCred advisor to get started.