DID YOU KNOW YOU CAN FINANCE YOUR BUSINESS WITHOUT DEBT!

Since the Retirement Income Security Act law in 1974, Entrepreneurs have accessed there 401(k), traditional IRA, SEP, 403(b), Keogh, or TSP accounts to invest in their own business. The ROBS (Rollover for Business Startup) allows you to access all or a portion of your Retirement funds to acquire or grow a business; without paying early withdrawal penalties, taxes, and without having to worry about business debt and interest payments.

It’s a common misconception that you can only use your retirement plan to purchase investments like publicly traded stocks, bonds or mutual funds. In reality, you can use most retirement plans to buy a business or franchise. This strategy can also be used to get into business with no debt or use for the cash injection for an SBA Loan.

( ROLLOVER FOR BUSINESS START-UP)

STEP ONE: CREATE A C-CORPORATION

Your business must be of a C-corporation to qualify for a ROBS. It’s the only entity that allows qualifying employer securities to purchase company stock. A limited liability company (LLC), sole proprietorship, limited liability partnership, or S corporation does not eligible under the ROBS Plan.

STEP TWO: Design A New Qualified Retirement Plan

Customize your new retirement plan that best suits your business.

401(k) plan

Profit sharing plan

Defined benefits plan

Defined contribution plan

A combination of plans such as a 401(k) with a profit-sharing component

STEP THREE: ROLLOVER YOUR CURRENT RETIREMENT PLAN TO YOUR NEW COMPANY RETIREMENT PLAN

Once the company retirement plan is set up your new plan custodian will work with you and your current plan custodian to imitate the transfer of your funds into the new company retirement plan.

STEP FOUR: Funds Become Available to the Corporation

The funds are now available to start a new business, purchase an existing business, and or expand a current business.