http://www.jeffnabers.com/2009/12/17/buying-a-business-or-franchise-with-a-rollovers-as-business-startups-is-a-big-no-no-according-to-nabers/ The No-B.S. Guide to Building Real Wealth in Your Self-Directed IRA or Solo 401k Sat, 17 Dec 2011 03:25:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.jeffnabers.com/2009/12/17/buying-a-business-or-franchise-with-a-rollovers-as-business-startups-is-a-big-no-no-according-to-nabers/comment-page-1/#comment-40279 Greg Aldridge Mon, 12 Sep 2011 22:39:42 +0000 http://jeffnabers.com/?p=1114#comment-40279 I didn't read your detailed blog before I posted. I guess you've dug into this pretty deep. I would still be pretty surprised to see any action on this but caution does seem to be in order. I didn’t read your detailed blog before I posted. I guess you’ve dug into this pretty deep. I would still be pretty surprised to see any action on this but caution does seem to be in order.

]]> http://www.jeffnabers.com/2009/12/17/buying-a-business-or-franchise-with-a-rollovers-as-business-startups-is-a-big-no-no-according-to-nabers/comment-page-1/#comment-40278 Greg Aldridge Mon, 12 Sep 2011 22:18:29 +0000 http://jeffnabers.com/?p=1114#comment-40278 It is not prohibited as long as you do it right. It's actually pretty simple. Create a c coporation, have the corporation hire you and offer a 401k with company stock as an option and roll your 401k over to the new company. Totally legal and legitimate. You are an employee (and likely an officer) of the new company and a shareholder. The company is partly (or wholly) capitalized by your purchase of stock. Only mistake I see is people who don't know what they are doing using LLCs. That doesn't work in this case because it is a disregarded entity from the IRS perspective. It is not prohibited as long as you do it right. It’s actually pretty simple. Create a c coporation, have the corporation hire you and offer a 401k with company stock as an option and roll your 401k over to the new company. Totally legal and legitimate. You are an employee (and likely an officer) of the new company and a shareholder. The company is partly (or wholly) capitalized by your purchase of stock. Only mistake I see is people who don’t know what they are doing using LLCs. That doesn’t work in this case because it is a disregarded entity from the IRS perspective.

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