Rollovers as Business Start-Ups (ROBS) are financing mechanisms in which current or prospective business owners use their 401(k), IRA or other retirement funds to pay for new business start-up costs, for business acquisition costs or to refinance an existing business. ROBS is an acronym from the United States Internal Revenue Service for the IRS ROBS Rollovers as Business Start-Ups Compliance Project.
Although the official tax filing date has passed us by, the subject matter of this blog is still relevant because many taxpayers have filed extensions and have a number of months before the extended filing date is final.
Immunity from making mistakes on your tax returns is something that no one can ever really guarantee. Some mistakes are accidental while other kinds of mistakes are not so accidental or are intentional.
Now that you’ve closed on your purchase of a business, what are you going to do? Sit back and watch? Closely managing the transition from the former business to your new business is the recommended task at hand.
On many occasions, I’ve seen entrepreneurs embark on operating a family-owned business and thinking that it’s going to be easy to be successful or that there won’t be any of the problems typically encountered in an non-family scenario.
In many cases, however, these assumptions rarely turn out to be the case.