If a ROBS is used to finance a franchise business (C-Corp) do you ever see a company buy back the shares and transition the business to a LLC once the business becomes profitable?
This is absolutely a possibility and it’s been done plenty of times. This is generally what happens when you wind down your ROBS. You’ll need to buy back the shares the retirement plan owned, at fair market value, and then you’ll be able to do what you please with your legal structure. That means you can transition the business to a limited liability company, if that’s what you prefer.
Keep in mind that we aren’t attorneys and can’t give you legal advice, though. You should likely speak to a ROBS provider about the process of winding down your ROBS and an experienced ROBS attorney, as needed. Good luck!
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