Over the years, it has become increasingly more difficult for entrepreneurs to obtain a bank loan and get the funds they need to actualize their dreams. Fortunately, times are changing, and people are discovering alternative avenues to acquire funding, such as the Rollover as Business Startup Solution (ROBS).
The ROBS solution allows investors to use their retirement funds to invest in a business they will actively be involved in. So, if you had dreams of starting your own restaurant and being the head chef, the ROBS solution can make this possible. Furthermore, you will be able to earn a salary from your position – just be aware that it must be a reasonable salary.
Because of the legality of the ROBS solution, entrepreneurs can tap into their 401(k) and use their retirement funds to turn their startup dreams into a reality. Needless to say, using your retirement funds to invest in a new business comes with its share of risks, but it is legal.
IRS and the ROBS Solution
Even though the structure is completely legal, the IRS does have its concerns with individual’s staying compliant. As a result, individuals who employ the ROBS solution are more likely to have their company audited, although the chances of being audited are still very low.
Furthermore, compliancy rules and regulations make the structure very complicated to navigate, which is why it is always important to work with a specialist with years of experience with the Rollover as Business Startup Solution.
ROBS Solution for Entrepreneurs – A Success Story
At IRA Financial, we have had the privilege of working with many clients and helping them actualize their dreams of starting or funding a business/franchise. If you have reservations of getting started with the ROBS solution, these success stories will hopefully inspire you to take action.
When you work with IRA Financial, you will gain assistance from qualified specialists throughout the entirety of the ROBS process.
Starting Your Own Business
Success Story
“You all were on my mind late last night after I was informed the bank transferred the Money to the Seller of our Insurance Agency on my behalf.
“Not sure if you all realize this but without the IRA Financial Team, my lifelong dream of owning this Insurance Agency would not be possible.
“[The IRA Financial team] made yourselves available to the Banking Attorneys immediately.
“You helped my wife and I put together a very large Transaction using the funds in our 401K to do this…. You did it professionally and completely and very quickly.
Feel comfortable to use my name and phone number anytime as a referral to anyone who thinks they may want to use their 401K in the same way we did.”
– IRA Financial Client
Selling Your Business
Success Story
Not all success stories start at the beginning. If you choose to sell the business you funded with retirement money, you may later come to the decision of selling it at a monumental price, like in the case of this IRA client:
“I officially sold my business last Thursday. This was a Share Purchase Agreement sale in which I sold 100% of my shares…At closing and after paying off the remaining SBA loan & sellers note then broker’s commission and attorney’s fees, I cleared $1,032,477. Add this to the pending note and earn-out payments and I will net a total of $3,679,447…Not too shabby for an old northern farm boy.”
– IRA Financial Client
Working with IRA Financial for the Rollover as Business Startup Solution
When it comes to the Rollover as Business Startup structure, success stories are harder to come by if you do not work with a provider that thoroughly understands the ROBS process. Knowledge and experience are key, but so is the ongoing counsel offered by your provider.
At IRA Financial, we will work with you before, during and after setting up the ROBS structure. By working with IRA Financial, these clients were able to employ the structure successfully.
Success Story
“The IRA Financial Group was easy to work with. They answered all my questions and also were wiling to speak to third parties (such as my bank) that had questions about the ROBS structure I was setting up. They held my hand throughout the process. I would recommend them to others.”
– IRA Financial Client
“IRA Financial Group, guided me through my entire ROBS process. They had great pricing and were very helpful. I would recommend them to everyone.”
– IRA Financial Client
Considerations
The Robs Structure is a great solution for entrepreneurs, but it’s important to understand the risks behind it. According to statistics, half of new businesses fail within the first five years. If you are an entrepreneur who decides to use the ROBS solution, in a sense, you are gambling with your retirement funds. There are other drawbacks to consider. If you are an entrepreneur who believes the ROBS solution is for you, call IRA Financial directly at 800-472-0646 and let us help you get started.
