Has anyone invested in a company that you know was initially started as a RollOver as a Business Startup (ROBS) or a ROBS holding?
I am looking at this as an incubator model to avoid interest payments and other forms of initial capitalization.
I understand the level of risk and the objections some have for ROBS.

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Hmm, this is new to me. How does it work?

ROBS basic setup
1) new C-Corp - single owner
2) 401K Plan for C-Corp
3) owner rolls over 401K (not Roth, nor IRA) into Plan
4) Plan buys shares of C-Corp
5) owner MUST remain active 1,000 hrs/yr which is about 20 hrs a week
From this point all regular rules apply including (5)
Common to use a Safe Harbor 401K to reduce audit overhead and avoid non-compliance if there are multiple employees.
Search IRS ROBS for a project identifying common tax problems.
Certainly this is not well suited for everyone nor for all situations. And there is additional guidance on aspects including what is considered active vs passive, such as the 1000 hr/yr minimum for the owner.

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