I established my small business about 2 years ago using my 401K thru a ROBS program. My administrator isn’t very helpful in helping me understand how to unwind that process. After all, they get a nice monthly fee. My tax advisor isn’t very familiar with this – and I have tried to speak with a few and it seems not many are familiar.
I want a strategy to exit this situation. C Corps have a lot of disadvantages – my business is growing and at some point, I’d like to find a way to exit – the right way – the most cost-effective way. I have thought about “acquiring” other business to expand – but even this is a challenge as they are S corp or LLC and well you can’t merge those with the C Corp – what are some of the initial key steps to exit and who can I speak with to assist?
Hi Joselin thank you for asking the question.
Congratulations on the success of your business so far.
Unwinding a ROBS can be a complex process that varies greatly depending on your business, whether you have employees, and how the ROBS was set up to begin with.
For this reason it’s very difficult to offer specific advice, the best people to help you would be whoever set up your ROBS to begin with. Most ROBS providers will help you handle the unwinding process or at least point you in the right direction.
If they are unable to help we recommend contacting one of the top ROBS providers to see if they would be able to help, at least by referring you to some third party that can handle winding it down.
All the best