ROBS Plan Exit Strategies—Part 2: Tax Effects of Divesting the Plan of Stock Ownership
This post is the second of a two-part post on ROBS exit strategies. The expenses and tax effects of the various paths of ROBS exit
This post is the second of a two-part post on ROBS exit strategies. The expenses and tax effects of the various paths of ROBS exit
ROBS plans (i.e. Rollover Business Start-Up plans) are a popular method for funding new business ventures, especially for franchises. The tax savings enable the entrepreneur
ROBS corporations and participating parties should always find a way to conduct all transactions in shares at fair market value
As any search engine will reveal, there are plenty of websites and articles describing the joys of using employee retirement plans to fund a business start-up, in transactions commonly referred to as ROBS (Rollover Business Start-Up). This post discusses the basics of the typical ROBS transaction.
When one of the owner-participants in a ROBS plan dies, the assets in the decedent’s account, including the company stock, must be transferred to a new plan account established for the beneficiary.
You’ve finally got the financing together to fulfill your dream of company ownership, thanks to a Rollover Business Start-Up, aka a “ROBS” transaction.