If you have your own business, whether it's an LLC or even a sole proprietor (where you report your income in Schedule C of your 1040 personal tax return), you can open and fund an SEP IRA. The self-directed LLC IRA works in a similar way to traditional IRAs. You, or the person you designate as a trustee or custodian, will manage all assets, report to the government, issue statements, and provide regular updates on the status of the funds. You can designate almost anyone to act as a trustee or custodian, including a company or agent that specializes in these types of transactions.
Be sure to do your research and read Gold IRA Custodian Reviews before making any decisions. Creating an LLC IRA is a strategy that investors in an IRA have used to purchase real estate, in order to obtain what is known as a “checkbook” over their IRA, allowing for greater control and reducing transaction fees by focusing more on keeping records yourself. Prohibited transactions are transactions between an IRA and a disqualified person that benefit the disqualified person. Once your account is open and funded, we'll need documentation before your IRA can maintain your LLC. If your IRA purchased the property directly (without using an LLC), your name and IRA account number will appear on all documents related to real estate and title deeds, which are available to the public.
You'll need your IRA Resources account number to complete the process, although customers sometimes start the process early. Whether you open a traditional IRA or a Roth IRA, use an LLC or not, the investment decisions are yours. Currently, the IRS doesn't detail what self-directed investments in an LLC IRA may consist of, but it does explicitly state the things you can never invest in in sections 408 and 4975. In the area of self-directed IRAs, account owners often use an LLC IRA to invest in real estate or other alternative investments. This is often the case when self-directed IRAs take ownership positions in closely controlled companies and family farms, or when they purchase apartment buildings and commercial real estate.
The costs to create the LLC and any similar expenses related to the creation, constitution, or maintenance of the LLC must come directly from the IRA. If you have further questions about this process, please contact an IRA Resources representative, we'll be happy to help. Then, with the IRA and LLC open, you can begin the process of transferring funds to your IRA, where the funds can be sent to the LLC's bank account.
