Legal Infrastructure
The Operating Agreement is the most critical document in your IRA LLC structure. A standard, off-the-shelf LLC Operating Agreement is not sufficient and can lead to severe IRS penalties, including the disqualification of your retirement account.
Your IRA LLC Operating Agreement must include specific language that strictly prohibits the LLC from engaging in any transaction that would violate IRC Section 4975 (Prohibited Transactions). It must clearly state that the manager (you) cannot be compensated, and that no disqualified persons can personally benefit from the LLC's assets.
We draft custom, state-specific Operating Agreements designed exclusively for retirement account compliance. Our documents have been reviewed and accepted by all major self-directed IRA custodians.