DRDA, PLLC Franchise Financing Information

What is a BORSA™ Plan?

BORSA™ (Business Owner's Retirement Savings Account), simply put, is a self directed qualified retirement plan that allows you to purchase stock in your employer's corporation (your own small business). The proceeds from the sale of this stock can be used to fund the purchase of a franchise, business start-up, or business property using your holdings in a 401(a) pension, profiting sharing 401(k), 403(b), 457, or IRA Rollover. Through the utilization of a BORSA™, these purchases can be accomplished without distributions, taxes, penalties, or the use of loans.

How it Works:

To understand how you can finance your new business with your 401k or other qualified plan you must understand how to access your savings without taxes, penalties, or interest, you must understand two bodies of law. The two bodies of law that govern the BORSA™ structure are the:

• Employee Retirement Income Security Act of 1974 (ERISA), and the


• Internal Revenue Code of 1986 (IRC).

For purposes of the BORSA™ structure, ERISA governs who is eligible and what you can or can not do in a qualified plan, while the IRC addresses what is deductible going into the plan and how money is taxed when it is taken out of the plan.* The graphic on the right depicts how assets move within the BORSA™.

*This structure can save you 50% or more on your retirement/investment from being eroded by state and federal tax authorities.

DRDA's Philosophy

We work with our clients to improve their future, not just account for the past. We prefer taking a pro-active role in resolving client concerns and objectives, rather than a reactive role to client problems.

DRDA's Objective

It is our objective to provide each client with the support and assistance they require in order to achieve their financial goals. To assist in this effort, we provide a wide range of services beyond the traditional accounting, auditing and tax work offered by most firms. We work with our clients to improve their future, not just account for the past.

DRDA exists solely to support our clients. In fact, the firm continuously monitors the business community for ways which we can further support our clientele. Additional services are available through strategic alliances with other support organizations. If you do not see the service you need, please contact our office and we can generally refer you to a proven, competent provider of the service.

DRDA has been recognized by the Houston Business Journal as one of the top 25 firms in the Houston market. The BORSA™ structure is available in all 50 states and US territories. We are members in good standing with the American Institute of Certified Public Accountants, the Texas State Board of Public Accountancy, and the Better Business Bureau.

We are the only company within the self-directed retirement account industry that is a CPA firm. As CPAs we must comply with the high professional standards and continuing education requirements of the American Institute of Certified Public Accountants and the Texas State Board of Public Accountancy. As CPAs we not only create the structure (BORSA™) that allows customers to use their retirement plan funds to buy a business, but we also provide SBA lenders with the documentation required to be compliant with any post-close reviews by the SBA. We have taught courses on compliance with this structure through NAGGL and Coleman Publishing. We have also provided audit and loan review services to lenders.

Important Note: To qualify for this program, you need to have at least $40,000 in an IRA, 401(k) or other retirement account and the funds cannot be with an employer that you are still working for.