The following flow chart provides a visual representation of how the Business Funding Plan is constructed.

A C Corporation is required for this structure. This can be setup for a new business or your existing business can be re-characterized as a C Corporation.

The business then establishes a retirement plan. The plan uses is a profit sharing plan similar in many ways to a 401(k) plan.

Funds are rolled over from existing retirement plans such as an IRA, 401(k), etc into the new company profit sharing plan.

The retirement plan then invests in the business by purchasing shares of the C Corporation.

The business now has access to capital.

The retirement plan has an investment in your business.

You draw a salary from the business, and can continue to grow your retirement wealth through tax deferred contributions to the profit sharing plan. The business can also make employer contributions on your behalf.