Latest blog postings | Page 2 | Frank Selden Law

Latest blog postings

Choosing Your Plan Admin
Mar 07 - 2019

Investing your retirement funds into your own business provides several key advantages or upsides which I will cover next week. This week we'll cover the risks, the downsides to adopting a ROBS strategy. Some of the downsides are best 

Cannabis Companies
Feb 28 - 2019

Since the US Federal government still considers Cannabis a Schedule 1 drug, cannabis companies allowed by State law experience difficulty opening bank or financial service accounts.

Use the Tax Code to our Advantage
Feb 20 - 2019

This is a collection of wisdom gleaned from the regulations and from helping hundreds of people walk through this process.

Jan 29 - 2019

ROBS and SDIRA clients face the same initial decision, where to incorporate their corporation or LLC. I recommend that, absent a clear and convincing reason to pick a different State, choose your home State. Here are some factors clients want to look at before making a final decision.

CA Annual LLC Tax
Jan 23 - 2019

I first heard of using a Trust with an LLC when John Park of PGI Self-Directed called me to ask whether the idea would work for his clients. I love creative thinking, yet the idea seemed odd to me at first.

ROBS Asset Purchase Diagram
Jan 18 - 2019

In an asset purchase of an existing business, the purchaser of the new business purchases the assets of the existing business. This type of purchase results in your Corp becoming the owner of the business operations.

ROBS Equity Purchase Diagram
Jan 15 - 2019

In an equity purchase of an existing business, the purchaser buys the equity away from the existing owner. This type of purchase results in your Corp becoming the owner of the existing legal entity. All liabilities transfer to the buyer by operation of law, wanted or not.

Jan 09 - 2019

A recent article on Entrepreneur touts one of the benefits of a rollover business startup as “partially fund their business ventures using their current 401(k) savings and then funnel some of their new business’ profits back into their retirement account completely free of taxes!” The author is c

Q-West, Iraq
Dec 28 - 2018

Presents under an 18” tree adorned our conference table at the office Christmas Day. Although a workday, we leisurely consumed a lunch on Christmas as grand as any back home. By time I reached the break room, only a skeleton remained of the deep-fried turkeys.

Nov 30 - 2018

Although the name ROBS includes the word Startup, the concept can be used to for existing business financing . Here’s how.

Nov 28 - 2018

May you invest your IRA into your own business? This Small Business Administration article, written by an attorney, implies yes.

Nov 09 - 2018

Contracting issues create a unique opportunity for Engineers (and similar professions) to use a Rollover Business Startup (ROBS) to land important contracts. Some of my clients leave firms to launch out on their own. Their goal is to work as a consultant.

Nov 03 - 2018

Plan Administrators require year end valuations of all plan assets. Most of my clients’ plans only contain stock in the sponsoring corporation so this is a straightforward, albeit important, task. Some plan admins do not provide any guidance on creating that valuation.

Oct 18 - 2018

Does a Rollover Business Startups (ROBS) funding structure allow someone to claim women owned business (WOB) status?

Oct 04 - 2018

The tax changes for corporations make 2018 a great year to start your ROBS funded corporation! Why? Glad you asked! Here are the Selden notes. Like Cliff notes, except my name isn’t Cliff, and he is already using that name for his notes.

Sep 28 - 2018

SBA loan life insurance is not my bailiwick. I help people create and fund corporations using their own retirement funds, a process the IRS refers to as ROBS. Some of my clients need SBA loans. There is an additional step an SBA applicant needs to complete if using retirement funds.

Sep 14 - 2018

If done incorrectly, taking a self-directed IRA (SDIRA) distribution can disqualify your IRA. If the IRS disqualifies your IRA, you owe taxes on the entire IRA backdated to Jan 1 of the year of the disqualification plus interest.

Sep 07 - 2018

Does your ROBS plan allow alternative 401K investments? A new client came to with an existing ROBS plan created by one of the big promoters. He wants to invest funds from his plan into a privately held LLC. The promoter told him he could not make that investment.

IRA Trust
Sep 04 - 2018

An IRA may invest its funds into a Trust the same way it does an LLC. This saves your IRA the annual LLC fee and does not require registration with the State.

Aug 30 - 2018

This article focuses on a ROBS IRS audit. There are two ways a ROBS setup can be audited: a DOL audit or an IRS audit. The previous blog focused on DOL audits.


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