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Lesson · Structure · protection

The entity is the foundation. Get it right first.

LLC, S-corp, C-corp, holding company — the wrapper you choose decides your taxes, your protection, and what strategies you can even use.

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APRIL 15
Last day for prior-year IRA and HSA money

START HERE

Two Different Things

Roth IRA, HSA, Solo 401kReal estate LLC
Where contributions goUBIT blocker C corp
Rollovers land hereROBS C corp
Holds the moneyHolds the asset

WORKED EXAMPLE

Four Accounts, One LLC

$205,000 land purchaseOne LLC, four members
HSA and Roth IRAAccounts own 100%
Roth and pre-tax 401kYou are the manager
Income in, costs outProfits split pro rata

How it works

How The Structure Is Built

1
Form a C corporationNot an S corp, not an LLC
2
Corporation sponsors a planSolo 401k or safe harbor 401k
3
Plan buys company stockThat cash funds the business
4
Stay compliant yearlyValuations, filings, testing

Key points

When You Need No Entity

✓
Private money loans
✓
Notes secured by real estate
✓
Private fund units
✓
Shares of a private company
✓
Two accounts partnered
✓
No LLC, no filings

CAVEAT

W-2 Employees Change It

Solo 401k allowedSolo 401k not allowed
Plan buys C corp stockSafe harbor 401k instead
Simplest ROBS pathControlled group rules

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The Entity Structures & ROBS field guide — one page

The strategy, the checklist, the key numbers, and links to the actual tax code. Print it, take it to your CPA. Free, no strings.

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Field guide · PDF

Entity Structures & ROBS

Cliff notes + checklist + the law

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The law behind it

Primary sources

Verify against the source before you rely on it. This is education, not legal or tax advice.

26 U.S.C. Sec. 1361 — S corporation definition and election requirements.law.cornell.edu/uscode/text/26/1361
26 U.S.C. Sec. 4975 — Prohibited transactions — the rules that make or break a ROBS (Rollover as Business Startup).law.cornell.edu/uscode/text/26/4975
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