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

Looking to buy a business or franchise and not sure how to fund the acquisition? Unsure about how rising interest rates could impact your funding options and business cash flow? 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 acquisitions over the last several decades. Many business owners have successfully used their 401k, 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 the ROBS 401k funding option, please click on this link.

With any funding option, there is always a compliance aspect to consider. 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.” Additionally, non-compliance can result in unnecessary costs and penalties. Fortunately, working with the right professionals with extensive ROBS 401k experience can significantly mitigate this risk.

Attaway Linville: A National Reputation For ROBS 401k Compliance, Bookkeeping & Tax 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. Our expertise includes all phases of support for clients who invest using ROBS. Not all CPAs and legal advisors have the experience needed to effectively guide business owners as they seek to implement, grow or exit a ROBS arrangement. For this reason, we commonly receive referrals from other CPAs and legal advisors. 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 Expert Support for Business Owners

Since most ROBS 401k entrepreneurs would rather spend time growing their businesses than spending significant effort on time-consuming activities like accounting, payroll and related activities, Attaway Linville offers a full suite of business consultation, accounting, payroll, tax preparation, tax planning, and compliance services particularly relevant to ROBS 401k business owners. Why not find a ROBS 401k expert who can support you while you focus on growing your business? Attaway Linville’s comprehensive support for ROBS business owners includes:

• Accounting, payroll, tax filing, tax planning, compliance and valuation services.
• Value generation based upon our specialized experience and expertise.  While some CPAs can provide many of the same type of services, they cannot operate through the lens of a ROBS 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 401k compliance issues. With Attaway Linville, business owners and other advisors benefit from proactive business advice and hands-on guidance.