ROBS Support For Business Owners: ROBS Set-Up, Ongoing Compliance and Exit

The ROBS 401K small business financing arrangement has become a very popular tool among entrepreneurs and business owners seeking financing for new business startups or existing business acquisition over the last decade. Many business owners have successfully used their 401(k), IRA or other retirement funds to acquire existing businesses (including franchises) or to start-up new businesses.

This financing arrangement is called a ROBS (an acronym used to abbreviate “Roll Over Business Start-up”). Such an arrangement is complex because it involves regulations from both the Department of Labor as well as the Internal Revenue Service. To learn more about a ROBS, please click on this link.

Unfortunately, some business owners with a ROBS become confused about how to manage certain transactions or situations because they have either misunderstood or been incorrectly informed. This confusion can lead to missing critical deadlines or, even worse, participating in transactions with a disallowed party which can result in a “prohibitive transaction.” Fortunately, working with the right professionals with deep ROBS experience can significantly mitigate this risk.

Attaway Linville: A National Reputation For ROBS Expertise

Attaway Linville has gained a national reputation for supporting business owners.  We can provide ROBS expertise in all phases of ROBS business development: start-up, growth, maturity and exiting a ROBS entity. While our expertise includes all phases of ROBS support, not all financial or legal advisors have the experience needed to effectively guide business owners as they seek to implement, grow or exit a ROBS arrangement. With our ROBS experience and relationships with specialized legal counsel, Attaway Linville is able to steer our clients through the complex waters of compliance (including FORM 5500 compliance and identifying prohibitive transactions) and mitigate the risks and fees related to the late submission of compliance information.

Full Suite of ROBS Support for Business Owners

Since most ROBS entrepreneurs would rather spend time growing their businesses than spending significant effort on time-consuming activities like accounting, payroll and related activities, Attaway Linville’s full suite of accounting, payroll,  tax preparation, tax planning, and compliance services are particularly popular among business owners. Why recreate the wheel when you can be focusing on growing your business?  Attaway Linville’s comprehensive support for ROBS business owners includes:

• Accounting, payroll, tax filing, tax planning, compliance and valuation services, which we have performed for nearly 200 such companies nationally. While some CPAs can provide many of the same type of services, there are very few dedicated ROBS experts who understand the pitfalls and consequences of being “out of compliance.”
• Consultation services related to funding decisions such as when to invest, exit, roll over funds, or seek alternative funding sources. There are usually multiple options and approaches to funding cash flow needs.
• Due diligence support for business owners considering business acquisition opportunities.
• Valuation services required when changes in equity occur.

Attaway Linville continues to receive new and existing client referrals from large service providers, other CPAs and attorneys across the nation. We not only provide solid business advice, but we “get our hands dirty” when there is a need to resolve ROBS compliance problems. With Attaway Linville, business owners and other advisors benefit from proactive business advice and hands-on guidance.