The best ROBS providers offer quick access to funds, low fees, and support services such as audit protection and legal support. When evaluating our picks for the top providers, we chose those with competitive pricing and fee structures for both small and large businesses.
Here are our seven picks for the best ROBS providers:
- Guidant Financial: Best overall for customer service and comprehensive legal and audit support
- My Solo 401k Financial: Best for businesses with fewer than 30 plan participants
- IRA Financial Group: Best for flexible minimum balance requirements
- Business Funding Trust: Best for lower long-term costs
- Pango Financial: Best for simple ROBS transactions
- Benetrends: Best for fast funding speeds for non-franchise owners
- FranFund: Best for expertise in franchises
Looking for a free business consultation session? Checkout Guidant Financial and see if they are the right ROBS provider for your business. |
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Best ROBS Providers at a Glance
Setup Fee | Monthly Maintenance Fee | Minimum Required Balance | Funding Speed | Legal/Audit Protection | Est. Value of Legal Support | |
|---|---|---|---|---|---|---|
| $149+ | $50,000 | 3 weeks | Yes; internal and external | Up to $5,000+ | |
 | $3,000 | $30,000 | 2-3 weeks | Limited | $500 | |
 | $3,500 | $100 | $30,000 recommended | 2-3 weeks | Yes | $500 |
 | $4,950 | $0 | $50,000 | 2-4 weeks | Not stated | $0 |
 | $3,995 | $110 | $30,000 | 2-3 weeks | Limited | $300 |
 | $155+ | $50,000 | 10 days | Yes | $1,000 | |
 | $155 | $50,000 | 10 days | Yes | $1,000 | |
Guidant Financial: Best Overall for Customer Service and Comprehensive Legal & Audit Support
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Rates & Terms | |
Initial Setup Fee | $4,995 (10% discount for veterans) |
Monthly Maintenance Fee | $149+ |
Funding Speed | As fast as 3 weeks |
ROBS Services Provided |
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Legal Support |
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Audit Protection | Yes; full audit protection covers costs of legal representation if audited |
Qualification | |
Minimum Required Balance | $50,000 |
Why We Like Guidant Financial
Guidant Financial is one of the most expensive providers in our guide in terms of the combination of initial set-up fees and monthly recurring costs. However, you get what you pay for—it offers a wide range of services and benefits that can end up saving you an even greater amount of time and money.
For example, in the event of an audit by the Internal Revenue Service (IRS) or Department of Labor (DOL), Guidant Financial will cover all costs associated with representing your business. Given the average hourly cost of hiring your own attorney at $200 to $400 per hour, this could easily provide you with more than $5,000 in savings alone. These potential savings are what make it our top pick for comprehensive legal and audit support.
Guidant Financial will also cover the costs associated with consulting with an outside, independent attorney to review your transaction. This can help ensure compliance and allow you to obtain additional support and guidance. Given the complexity of a ROBS transaction and the potential monetary penalties for overlooking regulatory requirements, Guidant Financial is an excellent option if you want to ensure that your ROBS plan is done correctly and that you have the support and protection in place in the event of an audit.
Visit the Guidant Financial website to learn more or to get the process started. There, you can schedule an appointment and a free consultation session to see if a ROBS is the right choice for your business. The provider also provides a high level of service to walk you through the process, providing a money-back guarantee if you’re unsatisfied.
My Solo 401k Financial: Best for Businesses With Fewer Than 30 Plan Participants
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Rates & Terms | |
Initial Setup Fee | $3,000 |
Monthly Maintenance Fee |
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Funding Speed | 2 to 3 weeks |
ROBS Services Provided |
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Legal Support | Yes but may be limited |
Audit Protection | Yes but may be limited |
Qualifications | |
Minimum Required Balance | $30,000 but may vary |
Why We Like My Solo 401k Financial
My Solo 401k Financial charges the lowest initial setup fee and has the second lowest monthly recurring maintenance fee of the providers in our guide. Its pricing, however, only covers up to 10 plan participants without additional charges being incurred. For that reason, we’ve selected it as the best provider for a smaller business with fewer than 30 plan participants. Once the number of participants grows larger, it may be more cost-effective to choose another ROBS provider.
Another potential downside is the fact that its audit and legal support network is not as extensive as other providers on our list. It offers the services of a single Harvard Law attorney who specializes in 401k and IRA business funding and a single dedicated compliance officer with over 18 years of experience.
My Solo 401k Financial hosts a daily live call via Zoom where you can ask questions to learn more about the company’s products. To join this webinar, head over to the My Solo 401k Financial website for instructions, where you’ll also have the ability to submit an application to get the process started.
IRA Financial Group: Best for Flexible Minimum Balance Requirements
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Rates & Terms | |
Initial Setup Fee | $3,500 |
Monthly Maintenance Fee | $100 |
Funding Speed | 2 to 3 weeks |
ROBS Services Provided |
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Legal Support | Yes, tax and ERISA support offered |
Audit Protection | Lifetime IRS audit support |
Qualifications | |
Minimum Required Balance | None but $30,000 is recommended |
Why We Like IRA Financial Group
IRA Financial Group, unlike many other ROBS providers, does not have a hard minimum requirement for your ROBS. In fact, it’s the only provider listed here that has this level of flexibility. That said, it can review scenarios on a case-by-case basis to determine if the costs are excessive in relation to the amount you wish to transfer. For this reason, we’ve picked it as a good option if you have a smaller balance and want to get more flexibility in rolling over fewer funds.
It provides many of the same ROBS setup services as other companies. Some examples are listed below, but it is not an all-inclusive list, and you should refer to the provider’s website for more details.
- Creation of one (1) C corporation (C-corp) including payment of filing fees
- Filing of Article of Incorporation with the applicable state
- Application for a corporation EIN
- Generation of C-corp requirements, including resolutions and minutes
- Adoption of 401(k) plan
- Appointment/designation of trustee and beneficiaries
- Tax and ERISA support
- Access to tax specialists for IRS form 5500
- Audit support
Business Funding Trust: Best for Lower Long-term Costs
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Rates & Terms | |
Initial Setup Fee | $4,950 |
Monthly Maintenance Fee | $0 |
Funding Speed | 2 to 4 weeks |
ROBS Services Provided |
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Legal Support | Provides up to $10,000 in legal fee coverage |
Audit Protection | Includes IRS audit guarantee |
Qualifications | |
Minimum Required Balance | $50,000 |
Why We Like Business Funding Trust
If you’re looking for a ROBS solution that has the lowest long-term costs, you should strongly consider Business Funding Trust, which is the only provider in our guide with no monthly recurring fees. It can also provide you with a federal tax credit of up to $1,500, further reducing the effective cost of the rollover.
It charges no monthly maintenance fees because it provides you with a no-cost alternative to the traditional third-party administration of your plan. This comes in the form of an administration kit containing instructions on how you can maintain your ROBS in compliance with tax, federal, and state regulations. If you require additional assistance, you still have the option of having Business Funding Trust walk you through the process for an additional fee.
However, it offers little to no legal support or audit assistance. Its team consists of a pension attorney, a retirement plan specialist, and a corporate attorney, but otherwise makes no mention of services that you yourself can use.
To learn more or to apply, head over to the Business Funding Trust website where you can contact the company by phone or email.
Pango Financial: Best for Simple ROBS Transactions
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Rates & Terms | |
Initial Setup Fee | $3,995 |
Monthly Maintenance Fee | $110 |
Funding Speed | 2 to 3 weeks |
ROBS Services Provided |
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Legal Support | Limited in-house support |
Audit Protection | Limited; provides assistance to your accountant or certified public accountant (CPA) |
Qualifications | |
Minimum Required Balance | $30,000 but can vary |
Why We Like Pango Financial
Pango Financial’s ROBS product is called the DreamSpark plan, and we recommend it if you have a simple rollover transaction. This is because Pango Financial’s legal and audit services are not as comprehensive in coverage as other providers in our guide. With that being said, Pango Financial does have an online customer forum where business owners can share advice with one another, something that not many other providers offer.
Other services that are unique to Pango Financial include registered agent services for the first year, an online instructional guide, and an online status checker. A money-back guarantee is also provided, and it states that you can be entitled to a refund of the setup fee if you do not receive all the services you were promised in the engagement agreement.
To submit an application, visit the Pango Financial website. There, you can also request a risk-free initial consultation to determine whether a ROBS might be right for you.
Benetrends: Best for Fast Funding Speeds for Non-franchise Owners
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Rates & Terms | |
Initial Setup Fee | $4,995 ($500 discount available for veterans) |
Monthly Maintenance Fee | $155 to $195 |
Funding Speed | As fast as 10 days |
ROBS Services Provided |
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Legal Support | Yes |
Audit Protection | Yes, audit shield protection guarantees compliance if you adhere to terms and conditions |
Qualifications | |
Minimum Required Balance | $50,000, but may be flexible |
Why We Like Benetrends
If you need funding quickly, Benetrends is a good option as it has one of the fastest funding speeds on our list. Although it may appear to have similar funding speeds to FranFund, Benetrends typically funds more quickly for non-franchise owners. FranFund, by comparison, specializes in franchises but has a slower average funding speed for other types of businesses.
In addition to getting your funds quickly, you can rest assured that your plan will be fully compliant with IRS and DOL requirements. Benetrends has an excellent track record of this, as it has never had a plan out of compliance in over 40 years of operation. For additional peace of mind, however, Benetrends does offer audit protection and legal services in the event of an audit. Ongoing support is also provided to ensure continued compliance.
Benetrends doesn’t outsource its administration services and keeps everything in-house to ensure you consistently receive excellent service levels. It also offers other products and services, such as startup loans, SBA loans, equipment leasing, and lines of credit.
To get started, you can schedule a free consultation or submit an online application on the provider’s website.
FranFund: Best for Expertise in Franchises
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Rates & Terms | |
Initial Setup Fee | $4,795 (discounts available for veterans) |
Monthly Maintenance Fee | $155 |
Funding Speed | As fast as 10 days |
ROBS Services Provided |
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Legal Support | Yes, internal and external support offered |
Audit Protection | Yes, internal and external counsel available |
Qualifications | |
Minimum Required Balance | $50,000 |
Why We Like FranFund
FranFund’s ROBS product goes by the name FranPlan. In comparison to other providers on our list, it specializes in franchises and offers a way for you to start the process risk-free with its SafetyNet option. SafetyNet works by allowing you to change your mind about the ROBS process before it’s finalized, essentially allowing you to get a head start on moving your money at no cost.
With FranFund, you’ll work with an organization that has an excellent track record of compliance. Its ROBS plans have less than a 1% audit rate, with no plan having ever been disqualified.
You can schedule a free consultation on the company’s website to learn more about whether this is a good fit for your needs. FranFund also offers other financing options, including SBA loans, equipment leasing, payroll services, payment processing, and business insurance.
How We Chose the Best ROBS 401k Providers
We chose the best ROBS 401k providers based on the following criteria:
- Setup and recurring maintenance fees
- Ease of transaction process
- Extent of legal and audit support
- Money-back guarantees offered
- Track record of compliance with regulatory requirements
- Ongoing compliance support
- Funding speed
- Customer reviews and ratings
- Minimum required rollover amount
Alternatives to a ROBS
In the event that you don’t qualify for a ROBS or are simply exploring all of your financing options, here are some alternatives to consider:
- 401(k) financing: If you have a 401(k) but don’t have a sufficient balance for a ROBS, you can still use it as collateral to get funding. This can include using a loan against the account or withdrawing from the retirement account. You can read more about this in our guide on how to use a 401(k) to start or buy a business.
- SBA loan: For businesses with strong credit history, SBA loans offer lower interest rates in comparison to other small business loans and have a variety of loan programs. While disbursement can be a longer process, it’s a good option for qualified businesses. You can learn more in our guide on SBA loan types, rates, and requirements.
- Personal loan for business purposes: For businesses that are ineligible for traditional financing but have good personal credit and income, a personal loan can be used for business purposes. There are few funds restrictions, although loan amounts may be lesser than standard business loans. See our list of the best personal loans for business funding to view providers with low rates and flexible loan terms.
- Angel investors: In exchange for equity in your company, angel investors can provide seed money to startups with limited resources. There is no repayment obligation, like financing with a traditional loan, and it typically has a less formal process. To learn more, read our guides on the pros and cons of angel investors funding your business and how to raise angel funding.
- Venture capital: Similar to angel funding, obtaining funding from venture capitalists provides a debt-free financing option, where ownership stakes can be offered in exchange for funding. Our articles on what venture capital is and how to raise venture capital can help you determine if the ROBS alternative fits the bill.
- Friends and family loan: Sourcing funds from friends and family is often less formal and can offer favorable interest rates and loan terms. To learn how to approach them to help finance your business, read our guide on raising money from friends and family.
Frequently Asked Questions (FAQs)
Depending on your plans or how you use it, a ROBS can be beneficial to your business if you are ineligible for other forms of financing or don’t want to have debt obligations. Since it’s not a loan, typical requirements—such as credit score, revenue, and time in business—aren’t taken into consideration. It may be worth it if you are eligible and can take advantage of tax- and penalty-free access to your own retirement funds.
You’ll typically need to be registered as a C-corp, have an eligible retirement account with a minimum balance of $50,000, draw a salary as an active employee, and allow employees to contribute to the C-corp’s retirement plan. Learn more about how a ROBS works, how to qualify, and how to choose a provider in our ultimate guide to ROBS transactions.
You may have to pay taxes and early withdrawal penalties if you complete a ROBS but end up not using the funds for a qualifying business venture. If you’re concerned this might happen, you can consider other types of startup business loans instead.
Bottom Line
The best ROBS providers should offer services that support a ROBS transaction, including tax or legal advice, low startup fees, and audit assistance. With a ROBS 401k provider, you can set up a ROBS and access your retirement accounts without any tax or early withdrawal penalties. Since a ROBS can be a complex transaction, you’ll want to work with a provider that can assist with the process and help you with your business needs.
