> ## Documentation Index
> Fetch the complete documentation index at: https://docs.talcottforge.com/llms.txt
> Use this file to discover all available pages before exploring further.

# How Nexus Works

> How Nexus by Talcott Forge takes a qualified founder from eligibility to funded business and ongoing ROBS administration.

Nexus by Talcott Forge is the current product under the Talcott Forge platform. It helps qualified founders use retirement savings to fund a new or acquired business through a ROBS 401(k) structure.

The product has two phases: **setup** and **ongoing administration**. Setup gets the founder from application to funded business. Ongoing administration supports the plan and entity obligations that continue after funding.

## Setup Path

<Steps>
  <Step title="Confirm eligibility">
    You answer questions about your retirement accounts, capital needs, business plans, and intent to be a working owner and employee of the business. Nexus screens for the baseline requirements before you spend time on the full application.
  </Step>

  <Step title="Complete the application">
    You provide personal information, retirement-account details, business information, compliance acknowledgements, and supporting documents. Progress is saved so you can leave and return.
  </Step>

  <Step title="Review and approval">
    Talcott Forge reviews the application, supporting documents, and compliance profile. If the structure fits, you review the Client Setup Agreement and pay the setup fee.
  </Step>

  <Step title="Form the C-Corporation">
    Nexus coordinates C-Corp formation, including state filing, first-year registered agent, and C-Corp EIN letter. ROBS requires a C-Corp because the 401(k) plan must purchase qualifying employer securities.
  </Step>

  <Step title="Establish the 401(k) plan and trust">
    Nexus prepares the plan and trust documents, obtains the plan trust EIN, and sends required documents for electronic signature through your dashboard.
  </Step>

  <Step title="Coordinate the rollover">
    You open the plan trust's custodial account, initiate direct rollovers from eligible retirement accounts, and track each transfer in the funding dashboard.
  </Step>

  <Step title="Capitalize the business">
    After rollover funds arrive, the 401(k) plan trust purchases C-Corp stock. The corporation receives the proceeds as working capital, and the ROBS structure is funded.
  </Step>
</Steps>

## What Nexus Handles

| Setup work                       | Description                                                                                                                    |
| -------------------------------- | ------------------------------------------------------------------------------------------------------------------------------ |
| **Eligibility and intake**       | Structured screening and application workflow                                                                                  |
| **C-Corp formation**             | Formation filing, registered agent, state filing fee, and C-Corp EIN letter                                                    |
| **401(k) plan setup**            | Plan document, trust agreement, plan elections, and plan trust EIN filing                                                      |
| **Document workflow**            | Generated formation, plan, governance, and transaction documents                                                               |
| **Rollover coordination**        | Direct rollover guidance and transfer tracking                                                                                 |
| **Stock issuance and valuation** | Transaction package, initial fair-market valuation, and capitalization records for the plan trust's purchase of employer stock |
| **First-year ERISA bond**        | Initial fidelity bond coverage                                                                                                 |

## What Continues After Funding

Running a ROBS-funded business means operating both a C-Corporation and a 401(k) plan. After funding, the ongoing Nexus service supports standard plan and entity administration, including compliance deadline tracking, annual filing support, required plan maintenance, valuation coordination, and entity administration support.

<Warning>
  Nexus prepares, coordinates, and administers key parts of the structure, but the founder and Plan Sponsor still have fiduciary and operating responsibilities. You remain responsible for running the business as an active operating company, maintaining separation between personal, corporate, and plan assets, making plan decisions in participants' best interests, giving Nexus timely and accurate information, handling payroll and contribution remittance, and avoiding prohibited transactions.
</Warning>

<CardGroup cols={2}>
  <Card title="Pricing" icon="coins" href="/getting-started/pricing">
    Review the current Nexus setup and ongoing administration fees.
  </Card>

  <Card title="ROBS Process" icon="list-check" href="/robs/process">
    See the detailed step-by-step customer flow.
  </Card>
</CardGroup>