I am using a ROBS plan to finance my first laundromat. I worked with a firm called Benetrends. They pioneered the ROBS plan. The steps are generally as follows:
1) Set up C corporation
2) Set up benefits plan (long term 401k savings plan for business)
3) Set up a transfer fron 401k/IRA into benefits plan
4) Benefits plan “acquires” stock in the company
5) Invests said money into business
6) Money gets transferred intop busines checking accoutn and is available.
I also took advantage of another twist. I took the money and converted to a Roth IRA. I take the tax hit this year, but every penny of the proceeds form a sale of the business gets flipped into a ROTH IRA tax free…… Call me and I can share more details.