ROBS (Rollover for Business Startups) Experience?

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September 08, 2025

by a searcher from Pepperdine University - Graziadio School of Business and Management in Piedmont, CA, USA

Has anyone here set up a ROBS (Rollover for Business Startups)? If so: • How did you approach compliance and ongoing monitoring? • Did you manage it in-house or work with a third-party provider? • Any lessons learned or “gotchas” you’d share with someone exploring the option? Separately, I’ve read through the past threads on where and how to set up a C-Corp, which were super helpful. Has anyone used a service (e.g., Clerky, Stripe Atlas, Gust, etc.) instead of going directly through an attorney? If so, what was your experience—would you recommend it? I’d love to connect with anyone who has gone through either process.
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Reply by a lender
from California State University, Sacramento in Auburn, CA, USA
SBA Lender Opinion: While the consensus here is Guidant (and I agreed, been referring them clients for 15+ years) and for those will limited liquidity and ample IRA funds, this might be the best interim means of buying a business. However, it does not mean you have to only think of a ROBS as long-term. Many of my borrowers have used a ROBS as an interim bridge means of buying a business, began saving their cash, and ultimately bought out the ROBS and unraveled the C corporation into an S corporation or other. The sooner you can unravel it, the better and cheaper. Don't think of it as permanent. Good luck!
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Reply by a searcher
from Colorado State University in Centennial, CO, USA
I too have used ROBS and will absolutely do it again. I think many who stop at the "double taxation" argument or somehow believe its otherwise too onerous, dont often fully understand it. There are some challenges regarding "creative" tax moves that are forbidden transactions under ROBS but I am still glad I did it and will do it again. I think ultimately it depends on what you need income from your biz for. Mine was mostly for the "retirement" bucket and not the "saving for a home" or "lifestyle" etc. Happy to chat further.
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