Form a Limited Liability Company (LLC)
A Limited Liability Company (LLC) is a business entity that is a hybrid of a corporation and a partnership. LLCs provide limited liability protection to its owners. Typically, the owners (members) are not personally responsible for the debts and liabilities of the business; therefore, creditors cannot pursue owners’ personal assets (such as a house or car) to pay business debts. LLC’s typically do not pay taxes at the business level. Any business income or loss is “passed-through” to the owners and reported on the owners’ personal income tax returns. Any tax due is then paid at the individual level. This is favorable as the LLC itself will not pay any taxes; rather, it will be the owners of the LLC that pay the taxes.
Briefly, an LLC is a separate legal entity whose tax liability passes through to the owners of the LLC even though the funds might, at the manager’s discretion, remain in the LLC. Therefore no taxes will be owed by you for your IRA-LLC unless you elect to take a distribution from the plan.
In order to have checkbook control of your IRA you must use an LLC. You could simply transfer your IRA to a IRA Custodian that allows a Self-Directed IRA and stop there. When you are ready to invest you submit your request to the custodian and once approved it is funded. This does not give you checkbook control of your funds. Your custodian has control.
You will be charged a fee each time you make a request for this approval process.
When you sell the asset held in your IRA you will be charged another additional fee. Each asset you own in your account will require an annual fee as well. You can see that if you own several assets in your account and you buy and sell often, the fees can get expensive. Also the time required for the approval process can be a major problem if you find a real estate or other transaction that needs to close quickly.
Using a Self Directed IRA LLC
IMPORTANT: When your IRA invests in your Self Directed IRA LLC you only pay the custodian asset fees for that one asset – the LLC.
Your Self Directed IRA LLC can then invest directly as you see fit as Manager.
There is no custodian approval process and no additional custodian fees for each asset purchased or sold by the LLC
When an opportunity arises all you have to do is write a check as Manager of the LLC..
This is extremely important to be able to take advantage of opportunities as an investor.
Another important reason to invest through an LLC is asset protection. In many states, if a judgment is entered against you a creditor may be able to seize or attach your IRA assets. When the investment is made inside an LLC this is not the case. If a judgment is rendered against you the judgment holder will get a charging order in most states. He will not be able to attach the assets of the LLC but will have to wait for a distribution of those assets. If there is no distribution then the creditor receives nothing. Also the creditor may have to pay taxes on profits that the LLC earns but does not distribute. This makes the IRA LLC an unattractive target for lawsuits.
The IRA that owns the LLC that in turn owns the assets offers the widest choice of investments available and also gives the best asset protection. With a Self Directed IRA LLC you can have strong asset protection and checkbook control of your retirement account.
There are specific requirements for forming a Self Directed IRA LLC
Read what our customers have to say……
T E S T I M O N I A L S
This has been a high-value experience. ….has been very responsive to questions and his delivery has exceeded my expectations – an unusual experience for today’s consumers.”–Brian Springmann – Mont Vernon, NH
Actually, I want to thank YOU for setting me up with this LLC and for recommending the trustee. This is by far the smartest thing I’ve ever done in my investment life. When I left my previous employer I rolled over my 401K, and since I had always contributed the max, it was a good chunk. I’ve averaged over 9% annually, mostly through private lending. I’ve heard so many horror stories from people … custodians charging them a fee every time they want to make an investment, delays so long that the deal falls apart while the custodian micro manages every detail of the investment, etc. So when people start whining about their self-directed IRA’s, I just say, “Well, you just didn’t do it the right way, that’s all!”. And then I email them your contact info and the contact info for my custodian.”–Matt Taylor – Weare, NH
Just wanted to write a note and thank you for your help in answering my many questions and then setting up my IRA LLC. In spite of what I would considered a complicated process, you guided me through it with speed and efficiency. Your service has to be the easiest to work with. You allowed me to purchase an investment property in time to get the great deal I was looking for and that alone justified the cost. Please feel free to use my name or contact information if you need it.Thank you again”–Doug Ness – O’Fallon, MO
I located Self Directed IRA LLC through the Better Business Bureau. They had 0 complaints over the past few years so I called them. I found their services to be excellent. My phone calls were always promptly answered or returned, and my questions answered clearly and thoroughly. All documents were sent quickly, and in about one month I had transferred my pension funds out of Wall Street, where they had been losing money consistently, and invested in a rental property which will net us at least 8% interest per year.I recommend them without reservation.”–Douglas Booth, Attorney at Law – Santa Fe, NM
Thank you for all your superb assistance today. I know I made a great decision in choosing the right firm and the right person by you demonstrating your expediency, accessibility, knowledge and competency throughout the first day. Once again “thank you!–Richard Ehlers – Hoffman Estates, IL
You more than met our needs in setting up our LLC with great efficiency in time and expense. Excellent company that understands their business and the needs of their customers!!”–Carl NcNew – White Salmon, WA
I highly recommend IRA LLC to any body who is looking for help..very well knowledgable in the subject..very trust worthy.”–Franklin Ajjarapu- Libertyville, IL
…… knows his business very well. He has steered me succinctly and well through the complicated steps of forming and optimizing my IRA.”
–Jonathan Lysenko – New Canaan, CT
I was very pleased with the handling of my IRA transactions by your firm, and I would not hesitate to use your services again in the future.”
–John Bagoy – Coquille, OR
All interactions with staff have been very professional, with helpful, knowledgeable, and timely handling of my and my other family members IRAS.”–James Mynatt – Atlanta, GA
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