Limited Returns Business Startup - ROBS v Solo 401k
Hello BP community. I have spent the last couple of weeks researching my start up, meeting with Attorneys and CPAs trying to find the strategy the best suits me. I have lurked in the forum and done loads of research online. Unfortunately, the folks that I am meeting locally aren't familiar with ROBS or the ins and out of Solo 401ks.
Here is a quick summary:
I currently operate a Sole Prop for my Architecture and Real Estate sales business and would like to start a REI business that I plan to keep separated from my Sole Prop. The main goal is to limit my realized annual income and keep investment deals tax deferred to help grow the investment company. I do not want to take salary or distributions from REI company for at least 5 years (unless forced to in case of C Corp.) The REI business will work between 3-4 flip projects and 1 buy and hold per year. The first 5-7 years are not about generating passive income, rather building networth through real estate holdings.
I have a 401k from a job I have left that I would like to use to start the REI business. I have been looking at both ROBS and Solo 401k. The CPAs I speak to are very concerned about the "double taxation" that would occur within a C Corp of the ROBS (even though I look to keep profits reinvested, through 1031 exchanges when it makes sense) It seems that the Solo 401k would provide me more freedom but I am not clear about the non-recourse loan options in Massachusetts and if this is even a viable option. This 401k I am looking to rollover has about $60k and I wanted to invest about $20k from savings. What are folks' experience with going this route?