ROBS (Rollover for Business Start-Up) funding is a debt-free method of capitalizing a new business by using qualifying retirement funds. ROBS is not a taxable withdrawal; you won’t pay any penalties, either! In fact, ROBS offers numerous additional benefits.

• Fund a cash-rich business

Instead of going in debt to purchase a business, you’ll have the ability to tap into existing retirement savings and put your hard-earned savings to work.

• ROBS is fast!

ROBS funding can be secured very quickly, unlike traditional methods like SBA loans that can take months.

• A direct route to profitability

Less of a debt burden on the business means a quicker path to profitability. Your decision to fund with equity and keep cash in the business allows you to grow quicker.

• Have greater control over your retirement account

The stronger the cash flow and profitability of your business, the more you’re able to contribute back into your retirement fund—tax-deferred!

ROBS-FUNDED BUSINESSES DESERVE EXTRA ACCOUNTING ATTENTION

ROBS funding is a fast, unique way to capitalize your business or franchise, but did you know specific accounting attention is necessary to remain in compliance? Here’s why…

• C- Corps have certain rules

A regular C-Corp and a ROBS-funded C-Corp have different regulations, especially related to personal expenses. Mistakes in this regard can result in big consequences including the Rollover being disqualified.

• The rules are always changing

Staying abreast of the current rules and how to structure changes, such as buying more stock in your C-Corp, is vital! Tax, penalties, and much more are directly related to compliance.

Your local CPA might not have knowledge or expertise with ROBS accounting. Some might even tell you NOT to use a ROBS at all due to their lack of in-depth understanding. In addition, self-education can subject your business to incorrect data, and DIY accounting takes time and effort away from actually operating your business.

Let the professionals at Specialized Accounting Services handle it!

Specialized Accounting Services (SAS) is your go-to accounting team with 15+ years experience working with owner-operated, ROBS-funded clients, including over 125 franchise brands! We understand the unique nature of reporting to franchisors and always prioritize on-time-accurate financials. We want to be your go-to accounting partner!

Getting Started

Contact SAS using our simple webform and we’ll reach out to you. In an initial conversation you can discuss your needs and, once you engage with SAS, we’ll walk you through every aspect of beginning your new business or franchise on solid financial footing.