Wednesday, August 18, 2021

ROBS Vs. Traditional Bank Loans

To invest with a Rollover for Business Start (ROBS), which is also a form of 401k business financing, is to use 401k/retirement money in order to get the initial funding for a new business endeavor with your own equity. It is recommended that you have at least $50,000 saved up in your retirement funds in order to make an investment with ROBS. Since ROBS uses your own money instead of getting a loan, there is no debt or monthly payments involved. This also means there is less overhead expenses required. With ROBS not being a loan, you don’t have to pay interest either. Your current debt will also not affect your eligibility to be able to use ROBS. Utilizing ROBS will not trigger a penalty for withdrawing money early. If more money than what is in your retirement funds is needed, you can use your retirement money as a down payment on a small business loan. 


There are far fewer requirements to be able to use ROBS vs using a traditional bank loan. Bank loans even go as far as doing a background check for criminal history, education, and financial stability. ROBS is useful for people who don’t have a ton of money to invest up front or for people who don’t have an exceptionally high credit score to be able to get a regular bank loan. To obtain a bank loan, you would need a credit score of at least 680. If you qualify for a bank loan with a lower credit rating, you would have to pay a much higher interest rate. Since you are using your own money, no credit score is required. You also need to prove that your business is currently making money in order to get a regular bank loan. Unlike a bank loan, you don’t have to put your house or other majorly expensive assets up for collateral. ROBS is only for individual small businesses and not franchises.


With ROBS, Your business will be a C corporation, which is taxed at 21% (instead of 35%) regardless of revenue generated. Because of being a C corporation, this will not affect the business owner’s tax bracket during tax time. At tax time, with a C corporation, you can report as many operating losses for as many years as you need to without the IRS scrutinizing you. Also with being a C corporation, the retirement funds will be rolled over into the business venture’s retirement plan. You can invest more in yourself where the money goes back into your private corporation instead of having it go mostly to stocks and bonds that are traded publicly. As a private corporation, employees can earn salaries and the shareholders will only pay an individual income tax, making ROBS a tax avoidant investment strategy. Health insurance with C corporations can be used as a regular deduction; other benefits can be deducted as well such as delivery vehicles owned by the company, education costs, childcare expenses, and much more. Employees need to be able to have the option to participate in 401k plans from the business. The business needs to stay as a C corporation in order to reap the benefits of ROBS.


In order to maintain proper use of ROBS and not have to pay money back to someone else, you need to be sure you are following some specific guidelines. Aside from remaining a C corporation, the business owners need to make sure they pay themselves and not be silent investors. If you’re investing in ROBS, the investment needs to be for yourself and not for someone else. Your business needs to be a federally legal entity in order to use ROBS and must participate in federally legal operating practices, not just ones issued by your home state. For example, you are not allowed to invest in the marijuana industry because though it may be legal in your home state, it is not federally legal.


ROBS may have certain stipulations in order to be utilized properly, but in the end, can save you and your business a lot of money.

Friday, February 5, 2021

Broccoli Cheese Soup Recipe

1 pack frozen broccoli
2 cups chicken broth 
1 cup yellow cheese of choice (I chose taco cheese)
1/4 cup diced yellow onion
1 roma tomato
1 tbsp minced garlic 
3 tbsp butter 
3 tbsp all purpose flour  
1 cup 2% milk 
1/2 tsp of: seasoned salt, pepper, taco seasoning, crushed red pepper flakes, parsley (for garnish)

Thaw frozen broccoli. Place all ingredients except garnish into a blender and blend until clumps are gone. Pour into a pot and heat on 3-4 until hot. Add garnish and enjoy!

Wednesday, February 3, 2021

Kicked Cauliflower Mashed Potatoes Recipe

1 bag of frozen cauliflower
1 tbsp minced garlic
1/2 cup chicken broth 
3 tbsp olive oil
1/2 tsp of: seasoned salt, pepper red pepper flakes, garlic powder, parsley
1/4 cup grated parmesan cheese 
1 tsp nutritional yeast (optional)

Thaw the frozen cauliflower over the stove in a pot. Strain excess liquid. Add cauliflower and other ingredients into the blender. Blend until clumps are gone and texture is smooth and not watery. Top with 1 tsp nutritional yeast for garnish (optional)

Happy feasting, everyone :D

Spicy Vodka Sauce Shrimp Scampi Recipe

Sauce 

3 tbsp butter  
1/4 cup olive oil 
1 cup chicken broth 
1/4 cup lemon juice
1/2 bottle vodka sauce (any brand)
1/4 cup grated parmesan cheese
1/2 cup chicken broth 
1/4 cup hot sauce (any brand)
2 tbsp minced garlic
1/2 tsp of: seasoned salt, pepper, lemon pepper, crushed red pepper, onion powder, parsley 

Mix sauce ingredients together in a bowl

Pasta

1/2 box pasta fettuccine 

Fill medium-sized pot 3/4 of the way full with water and add 1/4 tsp seasoned salt and 1 tbsp olive oil for quicker boiling and so the noodles don't stick. After boiling the water, cook noodles 12-15min for al dente texture. Strain the noodles and run under cold water for 15 seconds to stop the cooking process. Pour back into empty pot.

Shrimp 

2cups frozen shrimp tail off and devined (any size)
3 tbsp olive oil
1 tsp of: salt and pepper

Cook shrimp until pink and not frozen

Veggies

1 diced Roma tomato
2 cups spinach
3 tbsp diced onions
3 tbsp olive oil
1 tbsp minced garlic

Sautee the following until onions are brown. Then add 1/4 cup chicken broth. Cook veggies until broth is fully absorbed

Mix the sauce, veggies, pasta, and shrimp into the pot. Heat until sauce is starting to bubble. Enjoy!