Investor has option to invest Solo 401k in alternative investments such as real estate, private placements, notes, trust deeds, tax liens, etc., in addition to equities (stocks and mutual funds). Whereas a 401k for small business financing is used for what the name implies: to finance one's business or franchise, for example.
Moreover, when you open solo 401k, you are restricted by IRS regulations from investing 100% of the plan's funds in your business, which is not the case with 401k small business financing. Further, solo 401k is for maximum of two participants--both spouses or two business partners, whereas 401k small business financing allows for unlimited number of participants.
Moreover, when you open solo 401k, you are restricted by IRS regulations from investing 100% of the plan's funds in your business, which is not the case with 401k small business financing. Further, solo 401k is for maximum of two participants--both spouses or two business partners, whereas 401k small business financing allows for unlimited number of participants.
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