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After your ROBS-funded business is operational, the C-Corporation may reimburse you for setup costs incurred during the formation process. There are two methods.

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When the Option Appears

Once your business is funded, your post-funding dashboard activates. The fee reimbursement election appears in the Action Required section (Zone 2) of that dashboard. You can elect your preferred method at any time after funding is confirmed.

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Reimbursement Options

The C-Corporation pays you $5,000 in cash to reimburse the setup fee.How it works:
  • Board resolution authorizes the reimbursement
  • Payment is made from corporate funds to you
  • Treated as a business expense under IRC 162 (ordinary and necessary business expenses)
  • The corporation gets a tax deduction; you receive the funds
Best for: When the corporation has sufficient cash flow and you prefer an immediate cash reimbursement.

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Required Documentation

Regardless of method, you need:
DocumentPurpose
Board ResolutionCorporate authorization for the reimbursement
Receipt/InvoiceDocumentation of the fees being reimbursed
Meeting MinutesRecord that the board discussed and approved the reimbursement
Talcott Forge generates the board resolution and receipt documents automatically when you elect fee reimbursement from your dashboard.

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Tax Treatment

Under IRC 162, the ROBS setup fee is an ordinary and necessary business expense of the C-Corporation. The corporation can deduct the reimbursement as a business expense, reducing its taxable income.

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When to Elect

Fee reimbursement is available after your ROBS funding is complete. The election option appears in the Action Required section of your post-funding dashboard. If you have any questions about which option is right for your situation, contact the Talcott Forge concierge team from your dashboard.

After Funding

Learn about all post-funding steps and obligations.