Fee Reimbursement
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.Reimbursement Options
- Cash Reimbursement
The C-Corporation pays you cash to reimburse setup fees.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
Cash reimbursement does not create a ledger entry between the plan and the corporation — it’s a straightforward corporate expense.
Required Documentation
Regardless of method, you need:| Document | Purpose |
|---|---|
| Board Resolution | Corporate authorization for the reimbursement |
| Receipt/Invoice | Documentation of the fees being reimbursed |
| Meeting Minutes | Record that the board discussed and approved the reimbursement |
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.When to Elect
Fee reimbursement is available after your ROBS funding is complete and the business is operational. You’ll see the option on your dashboard in the post-funding section.After Funding
Learn about all post-funding steps and obligations.