C - Corporation Vs. Sole Prop We are starting a business and intend to use our 401k money as start up capital. I need about 40k in start up money and if I become a C-corp I am told that I can keep all of the funds without penalty or taxes because of the ROBS act. I don't plan on making a profit my first year and expect a minimal profit my second year. We would incur a cost of 4k to have a company start this up for us vs. not paying a dime but having to take out another 25k from our 401k to pay for penalty and taxes and still have the same 40k for start up costs. Besides all the hassle and paperwork/filings of being a C-Corp are there any other downsides I should know about before making this decision?
Thanks |