7 Best Rollover for Business Startups (ROBS) Providers 2019

A rollover for business startups (ROBS) is a financing solution that lets you start or purchase a business with your retirement savings without paying early withdrawal fees or tax penalties. These transactions are difficult and confusing, which is why we recommend using an experienced ROBS provider. We’ve compared the best ROBS providers for startup businesses.

Best ROBS Provider:

Guidant Financial topped the list because they complete more ROBS transactions each year than any other provider. It is also the only provider that offers free outside counsel to you before, during, and after your ROBS transaction is complete. Funding may take two to three weeks, but the whole process starts with a free, no-obligation consultation.

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Top 7 ROBS Providers 2019

How We Determined the Best ROBS Providers

ROBS providers help you set up and maintain the monthly and annual reporting that is required for a ROBS, which can be confusing to complete on your own. While all providers can guide you through the transaction, the best ROBS providers differentiate themselves through their experience, support, fees, and the additional startup financing options they provide.

The criteria we use to determine the best ROBS provider include:

• Setup fee: The initial cost of setting up the ROBS
• Maintenance fees: The ongoing costs for maintaining the ROBS in accordance with current tax law and regulations
• Support: The support business owners receive before and after the ROBS is active, in avoiding ROBS prohibited transactions, filing paperwork, and maintaining the plan
• Communication: The ease with which each provider could be reached by their clients in the event of questions
• Additional financing options: The overall access to capital that ROBS providers can offer businesses, and the cost of helping them apply
• Customer reviews: Reviews of current and previous customers of each provider

In an industry where most providers have similar offerings, Guidant stands out due to the level of support it offers to its customers. Guidant is the only provider that offers a free consultation with outside counsel before you sign up. Guidant also gives their customers more assurances during a potential audit than any other provider, by guaranteeing the use of outside counsel in the event of an audit. That kind of assurance is essential when you’re about to use 401(k) business funding.

Guidant: Best Overall ROBS Provider

Guidant is the best fit for most entrepreneurs looking for a ROBS provider because it completes more ROBS transactions each year than any other provider and also offers more upfront support at a competitive price of $4,995. Guidant it the only ROBS provider that offers a free outside counsel consultation before you sign up.

What Guidant Financial Offers

More than 1,600 small business owners use Guidant every year to complete a ROBS transaction, with fewer than 0.35% audited and no disqualifications. Guidant offers a free initial consultation with outside counsel, a full ROBS setup, ongoing maintenance, and IRS filings. If you need additional financing, Guidant will help you apply and, if you sell the business, it will handle unwinding the ROBS.

Initial Support & Setup

Guidant is the only ROBS provider that offers every potential customer two one-hour sessions with an outside attorney to evaluate whether or not a ROBS is the right financing option. Once you have made a decision, Guidant Financial will do all the heavy lifting of setting up a ROBS, from establishing a C corporation (C-corp), to filing all of the appropriate paperwork, rolling over funds into the new 401(k), and ultimately funding your business in as little as two weeks.

Ongoing Support

Guidant Financial reviews your business on a regular basis to ensure that it is in compliance with current regulations. This includes setting up eligible employees, filing IRS Form 5500, and providing support in the event of an audit. Guidant is the only provider that guarantees in its contract that they will pay for outside counsel to help you through any audit of your ROBS retirement plan.

Additional Financing Offered

In addition to ROBS, Guidant also helps their clients obtain financing for Small Business Administration (SBA) loans, unsecured loans, portfolio loans, and equipment leasing. For this service, Guidant charges a $2,500 consulting fee to start working on your loan request. Guidant Financial will guide you through the application process and introduce you to lenders it has partnerships with.

Additionally, Guidant is the only provider that offers a full refund of its consulting fee. If you do not get funded with Guidant’s help, it will reimburse the fee. However, if you decline a potential loan because you do not like the terms, Guidant will retain the fee.

Support With Unwinding ROBS

If and when you sell your business, Guidant will make sure the retirement plan is closed down and rolled into an individual retirement account (IRA) account. It finalizes paperwork and files your last IRS Form 5500 for the year your business is sold. Typically, Guidant will charge you its monthly fee for a few months after the sale of your business so that it can finish up these tasks on your behalf, similar to Benetrends and FranFund.

Guidant Costs

Guidant’s costs are slightly higher than the other options on the list. However, this higher cost is justified due to the level of support Guidant offers its customers. The additional cost, when compared to other providers, is minimal and could be as little as $9 per month.

Guidant has two main costs with a ROBS 401(k) transaction:

• Setup fee: $4,995
• Ongoing maintenance fee: $139 per month for up to 10 employees; $3.33 per employee, per month, over 10 employees

What Guidant Is Missing

Guidant is a great option to help you through the ROBS transaction, but its services are a little more expensive than the competition. It is also less integrated into the franchise community than some of the other ROBS providers we evaluated for this guide, like FranFund.

Guidant Financial Reviews

Guidant Financial generally has positive ratings. Users who gave positive Guidant Financial reviews cited its quality of customer support through the complex process. Users who gave critical Guidant Financial reviews said its fees were costly. To find out more about what Guidant customers think, visit our Guidant Financial reviews page.

FranFund: Best ROBS Provider for Franchises

FranFund is run by former franchise owners and is more ingrained in the franchise community than its competitors, making it a great ROBS provider for franchise businesses. In 2018, roughly 92% of FranFund’s clients were franchises and, for a fee of $4,795, it will work to get your ROBS set up.

What FranFund Offers

FranFund’s ROBS offering is similar to Guidant’s, but FranFund focuses mostly on franchise businesses. It offers lower overall costs and plenty of support from initial content through setup and, ultimately, unwinding your business when it is sold. In addition to ROBS, FranFund also offers additional financing options for your business.

Initial Support & Setup

Before you sign up, FranFund has a unique program called “the Safety Net Program” that helps you shorten the time it takes to go through the ROBS process at no cost to you. This program guides you through the process of moving your funds into an IRA account before you start the ROBS. Having the funds in a tax-deferred IRA account enables you to get funded in as little as two weeks, which is similar to Guidant.

Ongoing Support

FranFund offers plenty of ongoing support once you complete the ROBS transaction, including the promise of outside counsel during an audit. While it does not explicitly outline this in its contract, it does promise verbally that it will provide you with outside counsel at no additional cost to you, if it is needed.

FranFund will also do all of the legwork and help you sign up eligible employees to your 401(k) plan. It will prepare and file your annual IRS forms, and it will work with you every step along the way to ensure you have your questions answered as they arise. FranFund’s ongoing support level is similar to Guidant’s, with the exception that Guidant has audit help outlined in its contract.

Additional Financing Offered

If you need additional financing, FranFund will help you choose the right franchise financing option for you, including SBA loans, unsecured business loans, equipment financing, and securities-backed financing. FranFund will package the loan request and submit it to hand-picked lenders on your behalf. It charges a standard fee of $2,500 but, unlike Guidant, it doesn’t offer a refund.

Additionally, FranFund also offers direct lending options through FastForward Capital. It offers conventional loans for mature franchise brands to fund existing franchise expansion. This makes FranFund a good financial partner to fund your franchise because, in addition to a ROBS, it allows you to come back later when you need capital to grow your business.

Support With Unwinding ROBS

If you sell your business, FranFund will handle the unwinding process of a FranPlan ROBS. You will typically be charged the ongoing maintenance fees until this process is completed. Your maintenance fee will cover most of the common unwinding scenarios. However, in some complex transactions, FranFund recommends seeking outside help, similar to Pango Financial.

FranFund Costs

FranFund offers its services at slightly lower rates than Guidant Financial, charging $4,795 upfront for most customers. In addition to its setup fee, its ongoing maintenance fee of $130 per month is comparable to other providers we evaluated. The standout component of their pricing is the large initial discount that it makes available to veterans.

FranFund has two main costs with a ROBS 401(k) transaction:

• Setup fee: $4,795; $3,995 for veterans
• Ongoing maintenance fee: $130 per month

What the FranFund FranPlan Is Missing

FranFund’s written contract for the FranPlan does not guarantee the use of an outside counsel during an audit. While FranFund says it will provide this additional feature if it is needed, Guidant promises it in writing. Furthermore, unlike Guidant, FranFund’s loan application consulting fee is nonrefundable.

FranFund Reviews

FranFund generally has positive customer ratings. Users who gave positive reviews for FranFund cited that its employees guided them through the process without problems. Those who provided critical reviews of the company said the fees were costly and continued for longer than necessary. To find out more about what FranFund users think, visit our FranFund reviews page.

MySolo401k: The Most Affordable ROBS Provider

For those seeking the most affordable ROBS provider, the upfront fees for a ROBS with MySolo401k are just $4,000 and account maintenance free for the first year. MySolo401k has experienced compliance officers and attorneys to guide a ROBS transaction for all businesses and promises outside counsel when needed.

What MySolo401k Offers

MySolo401k provides the guidance needed to complete a ROBS transaction with the lowest costs and strong ongoing support. Its initial consultation, setup process, guidance, and ongoing support are comparable to its peers. However, due to being focused exclusively on ROBS, MySolo401k is only able to help with SBA loans for additional financing.

Initial Support & Setup

MySolo401k will work with you before you become a customer, with a focus on understanding your needs and educating you about your options and the ROBS process. It does not, however, offer a consultation with an independent attorney like Guidant. MySolo401k will take you through the process of setting up a C-corp, moving your funds and, ultimately, getting your company funded in as little as two weeks.

Ongoing Support

MySolo401k offers unlimited ongoing support from ROBS experts and attorneys. It handles all of the ROBS paperwork for you, including preparing and filing your IRS Form 5500, and the addition of newly eligible plan participants. Its audit guarantee promises that your plan will be compliant with the IRS and United States Department of Labor (DOL) standards. However, this isn’t guaranteed in the contract as it is with Guidant.

Additional Financing Offered

MySolo401k focuses on ROBS but is also partnered with third-party lenders that offer SBA loans. MySolo401k can, therefore, assist you with everything from finding an SBA-approved lender to closing the SBA loan by providing you with necessary documentation at no additional cost. It also offers retirement accounts like solo 401(k)s and self-directed IRAs. However, these are not used to invest in your small business.

Support With Unwinding ROBS

When you decide to sell your business, MySolo401k will handle the process of unwinding the ROBS on your behalf and filing the final forms with the IRS. Similar to other providers like Benetrends and Guidant, this service is included in their ongoing maintenance fees.

MySolo401k Costs

MySolo401k is the least expensive provider we evaluated both when measured on initial fees and ongoing maintenance. It attains lower costs by saving money on marketing and believes that because there is little maintenance to be done in the first year, your maintenance should not start until your second year of a ROBS contract.

MySolo401k has two main costs with a ROBS transaction:

• Setup fee: $4,000; $3,500 for veterans
• Ongoing maintenance fee: $899 annually for up to 10 participants; $75 annually for each additional participant; this fee is waived for the first year

What MySolo401k Financial Is Missing

MySolo401k offers a low-cost ROBS option and works closely with business owners to get funded. Unfortunately, because it does not offer financing options besides SBA loans, MySolo401k loses some of the financing flexibility offered by other providers like Guidant, Benetrends, and Pango Financial.

MySolo401k Reviews

MySolo401k has positive customer ratings overall. Users who gave positive MySolo401k reviews cited the quality of the customer service and its efforts to educate clients during transactions. Customers who gave critical MySolo401k reviews said it does not clearly state a cancellation policy. You can find out more about what users think by visiting our MySolo401k reviews page.

Benetrends Financial: Longest Track Record ROBS Provider

Entrepreneurs seeking an experienced ROBS provider may be impressed by Benetrends Financial. Benetrends is the pioneer of ROBS and has been facilitating rollovers for more than 30 years. Experience is crucial with a ROBS due to the details required to maintain compliance with the IRS and DOL. Benetrends charges $4,995 for ROBS setup.

What Benetrends Financial Offers

With more than 30 years of experience in the industry, Benetrends has never had its ROBS product, the Rainmaker Plan, disqualified and it completes about 1,200 ROBS transactions annually. Slightly less than 75% of Benetrend’s clients are franchisees, making it another good option for franchise funding. Benetrends offers competitive pricing with similar services to its competitors.

Initial Support & Setup

Like the other providers we evaluated, Benetrends offers a free consultation with one of its financial professionals to assist you in making a decision on the best type of funding for your situation. However, unlike with Guidant, you do not receive a consultation with an independent attorney. Benetrends will set up the ROBS on your behalf from opening a C-corp to getting your business funded in two to three weeks.

Ongoing Support of Rainmaker Plan

Benetrends Financial offers a guarantee that its on-staff professionals and attorneys will help you through all matters of your audit without any additional costs. If your audit case becomes more complicated than it can handle, it promises to provide outside counsel at Benetrends’ expense, but this is not a guarantee written into your contract as it is with Guidant. Benetrends believes that 95% of its clients can get through an audit without outside help.

Additional Financing Offered

Benetrends works with clients on a number of loan options that include loans for startups, SBA loans, equipment financing, and more. It will help you find a lender and then work with you through the process of getting your loan closed. Benetrends requires a $2,500 loan packaging fee to begin the loan application process, but this cost is reimbursed if it cannot get you a loan offer, similar to Guidant.

Support With Unwinding ROBS

Similar to Guidant and FranFund, Benetrends includes support for unwinding your ROBS in the event that you decide to sell your business. This includes all necessary procedures to close out the 401(k) and roll it out of the business as well as the final filing with the IRS. It has staff assigned to each client, who are available to answer any questions throughout the process.

Benetrends Financial Costs

Benetrends’ setup and ongoing fees are in line with FranFund and Guidant. The fees cover all of Benetrends’ services for as long as you are a paying client. You can cancel at any time with a 30-day notice, but Benetrends will no longer service your account at that time.

Benetrends has two main costs in a ROBS 401(k) transaction:

• Setup fee: $4,995
• Ongoing maintenance fee: $130 per month

What Benetrends Is Missing

Benetrends has a significant amount of ROBS experience and can guide you through the entire transaction. However, a ROBS through Benetrends is not any more affordable to set up than a ROBS with Guidant or FranFund. Additionally, Benetrends does not guarantee, within your contract, access to outside counsel when you need it.

Benetrends Reviews

Benetrends maintains an A+ rating with the Better Business Bureau (BBB) and generally has positive reviews around the web, including from people who used both its Rainmaker Plan as well as its SBA loan packaging. Critical reviews of the company highlighted customer dissatisfaction with the ongoing monthly fee, saying it wasn’t disclosed prior to obtaining their ROBS. To find out more about what users think, visit our Benetrends reviews page.

Pango Financial: Best for Multiple Financing Options

Pango Financial offers a ROBS option to entrepreneurs that are considering multiple forms of financing. Its DreamSpark plan has an upfront cost of $4,000 and ongoing maintenance of $110 per month. Pango Financial helps business owners explore funding options besides ROBS, even if it does not offer them.

What Pango Financial Offers

Pango Financial offers similar support and setup services to top providers, like Guidant and FranFund, but at a lower overall cost with its DreamSpark plan. It is experienced with using a 401(k) to start a business and handles most of the unwinding process in-house. From the initial consultation to funding, entrepreneurs can receive ROBS funding in as quickly as 10 days through Pango Financial.

Initial Support & Setup of Pango’s DreamSpark

Pango Financial provides a free consultation, during which they will work to understand your unique circumstances and explore potential financing options. Unlike other providers, Pango Financial will help you explore financing options beyond those that it offers directly. You can apply for a ROBS in as little as 10 minutes. Your application will be processed internally, and the paperwork for your C-corp can be available to the secretary of state’s office the same day.

Ongoing Support

Ongoing support offered by Pango Financial is similar to other providers. The fee covers preparing your Form 5500, compliance testing, documentation maintenance, plan reconciliation, participant statement preparations, vesting, and eligibility tracking. Pango Financial has never had an audit directly related to the ROBS. However, in the event of a general audit, Pango Financial will work with you to get all the proper paperwork but recommends that you utilize your own attorney.

Additional Financing Offered

Pango Financial offers guidance in selecting the right financing option for your business. This includes SBA loans and unsecured loans for which it offers help in applying for. It charges a total fee of $2,500 with $100 due before applying and $1,500 due when you receive preapproval and decide to move forward.

Support With Unwinding ROBS

Unlike other providers we evaluated, the level of support offered by Pango Financial when unwinding a ROBS remains somewhat unclear. Many parts of the unwinding process are done internally and are covered by the fee. However, in some situations, it uses an external partner to handle part of the unwinding that may result in additional costs. This is decided on a case-by-case basis.

Pango Financial DreamSpark Costs

In our comparison, Pango’s DreamSpark plan has a setup fee that is lower than most of the top providers on our list. The only reason it is not our least expensive option is that its ongoing maintenance is slightly higher than that of MySolo401k. However, although the fee is lower, it offers similar services to other providers.

Pango Financial has two main costs in a ROBS 401(k) transaction:

• Setup fee: $4,000
• Ongoing maintenance fee: $110 per month

What Pango Financial Is Missing

Pango Financial falls short in supporting the ROBS unwinding process, which can add additional costs if it is unable to do it entirely in-house. Furthermore, unlike Guidant, it does not offer legal counsel for audits and does not refund the consulting fees if you are unable to qualify for additional financing.

Pango Financial Reviews

Pango Financial has an A+ rating from the BBB. Reviews from around the web are generally positive, highlighting their expertise in the ROBS process and the quality of ongoing education. Negative user reviews stated that the process took longer than they expected, and that customer service was sometimes slow to respond.

Catchfire Funding: Best for Assistance Selecting a Business

For potential business owners that are uncertain what type of business they want to start, Catchfire Funding can help you identify business opportunities. However, due to a lack of pricing information, we recommend first checking out one of the previous providers on our list and using Catchfire Funding as a last resort.

What Catchfire Funding Offers

Catchfire Funding offers help with ROBS transactions through its Self-Directed 401(k) Funding program. It’s not upfront about its costs, but the process appears to be similar to its competitors.

Ongoing Support

One thing that separates Catchfire Funding from its competition is that it’ll help you find the right business or franchise to buy or start. Catchfire Funding does not provide details on how much support it gives after the ROBS transaction is complete, but it appears to provide at least basic services, such as preparing and filing your Form 5500.

Additional Financing Offered

Catchfire Funding also offers SBA loans through Diamond Financial. Catchfire Funding is an affiliate of Diamond Financial, so it will receive a fee when your loan closes, but it’s unclear if this will affect your total cost.

Catchfire Funding Costs

Unfortunately, it’s unclear how much Catchfire Funding costs because the company only provides this type of information to prospective clients. It does, however, offer a guarantee that if your ROBS either doesn’t go through within 90 days or if it fails an audit, the company will reimburse you for whatever fees you’ve paid to that point.

What Catchfire Funding Is Missing

Catchfire Funding is not upfront about its process, ongoing support, or fees. It also doesn’t appear to offer any direct lending itself. While its ongoing guarantee is nice, it doesn’t guarantee the help of outside counsel at its expense.

Catchfire Funding Reviews

Catchfire Funding has an A+ rating with the BBB but has no reviews there. In fact, there are surprisingly few user reviews available for Catchfire Funding available on the internet. Check out our Catchfire Funding reviews to learn more.

Business Funding Trust: ROBS Provider for Owner-operators

Entrepreneurs needing less than $250,000 and that plan to be the only employee of their business, may want to consider Business Funding Trust for their ROBS needs. The initial charge to set up a ROBS is $4,950, and because Business Funding Trust does not offer ongoing maintenance, there are no additional maintenance fees.

What Business Funding Trust Offers

Business Funding Trust offers a base plan for setting up ROBS for your startup. It provides you with a complete plan administration binder, which is sufficient for maintaining the plan with the help of your accountant. Once the ROBS transaction is completed, Business Funding Trust’s involvement is finished.

Initial Support & Setup

Business Funding Trust will work to educate you on the ROBS process and file all the appropriate paperwork. You will then use its plan administration outline to continue managing the ROBS. The outline includes sample forms and detailed instructions. Unlike other providers, Business Funding Trust won’t manage your ROBS for you. You will be responsible for maintaining compliance on your own.

Ongoing Support

The only ongoing support offered by Business Funding Trust occurs in the event that you encounter the need to file a Form 5500 with the IRS. In this event, Business Funding Trust is available to complete the paperwork on your behalf and will charge a fee of $300. Unlike Guidant, which guarantees the help of legal counsel in the event of an audit, with a ROBS through Business Funding Trust, you will need to rely on your own legal counsel.

Additional Financing Offered

Business Funding Trust only provides ROBS. However, it can provide you with the necessary paperwork you need to apply for an SBA Loan. You will have to rely on the loan officer that is originating the loan to gather the remainder of the documents and complete the process, whereas other providers will work with you throughout the process.

Support With Unwinding ROBS

If you are selling your business, most of the work will have to be handled by you and any outside help you hire. Business Funding Trust will forward you the necessary documents and outline the steps and procedures for going through the process. However, it will not assist in any additional way, which the other providers will do.

Business Funding Trust Costs

The unique pricing structure of Business Funding Trust accommodates businesses that are going to be exempt from the IRS Form 5500. It also charges its setup fee after the ROBS setup process, allowing your business to pay it directly, and giving you the opportunity to claim a $1,500 tax credit over three years.

Business Funding Trust has two main costs in a ROBS 401(k) transaction:

• Setup fee: $4,950, due after setup, payable by the business
• Form filing fee: $300 per IRS Form 5500 filing

Unlike other providers, Business Funding Trust does not provide ongoing maintenance for your account, which it states is unnecessary if you are the only employee. This means that it doesn’t charge any ongoing fees, thereby giving you the opportunity to save money in the process.

What Business Funding Trust Is Missing

Business Funding Trust has simplified services and targets its ROBS at a very specific type of entrepreneur. Having such a defined market has allowed Business Funding Trust to shed many of the ongoing support services in favor of self-guided ROBS maintenance. Compared to our other ROBS providers, it offers fewer services, but it passes along the savings through eliminating the monthly service fees charged by competitors.

Business Funding Trust Reviews

Business Funding Trust has an A+ rating with the BBB. It has positive reviews around the web, citing its low fees and tailored solutions. We were unable to locate any negative customer reviews regarding this company.

Bottom Line

In an industry where all of the providers offer a similar product, it is difficult to determine what sets them apart. Most of the providers have similar fees and provide ongoing support to help you through your ROBS transaction, and ongoing support to manage your ROBS once established.

However, Guidant has separated themselves through its expertise and level of service. It helps more business owners process ROBS transactions every year than any other provider and offers outside counsel support at no additional cost. You can sign up for a free one-on-one consultation to get started with Guidant today.

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