A high-level overview of the post-funding setup-fee reimbursement election.
After funding, the C-Corporation may reimburse the founder for the actual eligible Nexus setup fee paid. The election is available from the post-funding dashboard for 90 days after the business is funded.
The corporation pays the founder from corporate cash. This preserves the existing capitalization but reduces cash available to the business.
The corporation issues additional shares to the founder individually using the documented transaction value. These are founder-owned shares, not additional shares issued to the 401(k) plan trust.
The dashboard records the election and coordinates any supporting actions. The public docs do not enumerate the underlying records or signature workflow; follow the case-specific instructions shown in Nexus.
Cash and share reimbursement can have different corporate, tax, ownership, and retirement-plan implications. Talcott Forge does not provide tax or legal advice. Review the election with qualified advisors before relying on a particular treatment.