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Business Financial Planning

Business financial planning is crucial for employers and employees; you need a small business plan for you and your employee's financial future.

Unfortunately, most business owners have no succession plan, and tying wealth to business equity leaves a lack of succession planning that could be financially crippling. It's also difficult to attract the best talent to your small business without offering a small business plan.

Financial planning for business owners can seem overwhelming, but a dedicated Echelon business financial advisor can make it easy for you. In the process, you'll save time and money, and reduce stress.

Why It's Important to Have a Small Business Plan

Whether you're a sole proprietor, C corporation, S corporation or a partnership, small business plans benefit your business in the following ways:

  • They give employees a significant income source for retirement, which boosts employee morale and retention, and provides a safety net for employees
  • They're superb for recruiting the best talent out there
  • They allow employees a reduction in their annual tax bill, which boosts employee morale and satisfaction
  • They reduce tax for the business owner since the cost of implementing a small business plan is deductible on the company's tax return

It doesn't matter how big your business is — we can offer solutions that work for your unique situation.

The Best Small-Business Plans

When choosing a retirement plan for your business, you'll need to consider many options. You should start with a strategy that works for the number of people you'll cover. An Echelon business financial advisor can help you develop this initial strategy. After that, our business financial advisors will compare the details for you and advise you on the best plan for your business.

A dedicated Echelon business financial adviser will guide you on the following options:

1. Self-Employed 401(k)

A self-employed 401(k) is a savings account for small business owners without employees. In many ways, a self-employed 401(k) is similar to a traditional 401(k). However, because participants act as the employer and employee, they can set aside more money each year than under a traditional 401(k). Our business financial planning experts can help you choose between a traditional 401(k) or a self-employed 401(k).

A self-employed 401(k) offers many tax advantages for self-employed business owners and spouses working with them part-time. There are no income restrictions or age limits on a self-employed 401(k). You can borrow up to $50,000 or 50% of your account value with a self-employed 401(k), and a self-employed 401(k) offers greater options to maximize your investments.

2. Traditional 401(k)

A traditional 401(k) plan is superb for small businesses looking to retain top talent and increase employee expectations. This plan provides businesses with significant tax deductions and breaks. If businesses require a retirement plan that's easy to manage, a traditional 401(k) is an excellent option because there are many providers available to help businesses run their plans.

Some plans even offer fiduciary protections within their plan, which help take care of legal responsibilities and fiduciary liabilities connected with running the plan. Various providers can help you streamline processes by integrating with your payroll provider. As a result, this saves time, money and stress for many businesses like yours.


A SEP IRA — commonly called a simplified employee pension — is a business retirement plan available to employers and self-employed people. A SEP IRA can maximize savings through contribution limits, and self-employed people can contribute 20% of their compensation.

Moreover, SEP IRAs provide the advantage of flexible funding; employers can decide which amount to contribute or to skip contributing altogether. SEP IRAs also offer the benefit of tax-deferred compounding, and SEP IRAs are low maintenance for businesses of all sizes.

4. Simple IRA

Most small businesses with under 100 employees can use a Simple IRA plan. Simple stands for Savings Incentive Match Plan for Employees. Simple IRAs are easier to run, and they don't come with the bureaucracy of qualified plans.

Simple IRAs also provide multiple tax benefits. For example, contributing to a Simple IRA reduces your taxable income, which provides a tax benefit from the onset. Simple IRAs are also straightforward to set up because the reporting requirements are less stringent than a 401(k).

5. Investment-Only Account

An investment-only account is a small business plan with flexible investment choices. These are ideal for businesses with established retirement plans looking to expand their range of investments.

Investment-only accounts also have the benefit of zero annual fees and no account minimums. You'll have the flexibility of having one pooled account with an administrator managing the investment activity of the entire plan or separate accounts for each participant.

Start Your Business Financial Planning Today

Financial planning for business owners doesn't need to be complicated. Our dedicated team of financial advisors will guide you through each option and determine the best choice for you.

Contact us today to find out how we can help your business plan for a brighter financial future.