Are you tired of having your investments restricted to only stocks, bonds and mutual funds?

Are you ready to invest in real estate or in something that you know about?

Are you ready for better returns than you’ve been getting?

Are you ready to be in control?

If the answer to any of these questions is yes, you are ready for the Self-Directed IRA funded LLC
This structure has become a popular choice for gaining “checkbook control” of an IRA. An IRA is opened and funded at a custodian. A Special Purpose LLC is created, and the account owner directs the custodian to purchase and fund the LLC, which is managed by the IRA owner. The result is that you have a legally allowable (substantiated through case law) method of transacting at the LLC level without needing to involve the custodian. This method is sometimes used to cut down on any wasted time in signing contracts and checks, and it also allows the IRA to not be subjected to transaction-based fees from the custodian.
 
We can assist you in setting up the entity to achieve checkbook control. Our Self Directed IRA LLC, is the way to take control of your retirement.
We will also assist you in selecting a custodian for your Self Directed IRA as well as assist in rollovers or contributions. We can also assist you with investment ideas through our Real Estate, Mortgage and Investment Division. You can purchase the entire realm of investment vehicles with us as your Investment Advisor.


Consult with one of our investment advisors on the best course of action. If you decide that a self-directing your retirement investments is for you, Options is here to help.
We are the self-directed experts.
Take control of your retirement. Contact an Options professional to establish a self-directed IRA or open an account today.
FAQs

1. Must I form the IRA funded LLC in my state of residence?
No, you can use any state you prefer. Delaware, Nevada and Florida are popular options.  As to the reference that some states consider  LLCs as securities and that you must avoid those states.  This is not necessary.   Many LLCs sell securities known as "units".  If the LLC is going to have investors then it will sell units in exchange for money (the funds).  For example, the LLC will sell units to your IRA that is being held by a Custodian (if the custodian allows such investment).  Many will ask "what about the securities regulations of the states in question."  Fortunately, smaller LLCs, even those that plan to sell memberships to passive investors, usually qualify for securities law exemptions from the federal government. For example, SEC rules exempt the private sale of securities if all owners reside in one state and all sales are made within the state; this is called the "intrastate offering" exemption. Another federal exemption covers "private offerings." A private offering is an unadvertised sale that is limited to a small number of people (35 or fewer) or to those who, because of their net worth or income earning capacity, can reasonably be expected to be able to take care of themselves in the investment process. Most states have enacted their own versions of these popular federal exemptions and many of the exemptions available do not require an application (because they are "self-executing").  If you have any specific questions regarding your state and their variation to the exemptions provided by the federal government then contact your state's securities agency, which typically posts the state's exemptions rules and procedures. To find your state securities agency, go to your secretary of state's website or you can visit www.nasaa.org under "contact your regulator."

2.  What are passive investors?
Passive investors are those who aren't involved in the day-to-day operations of the business.  They provide funds only.

3.  Can the IRA funded LLC invest outside the country?
Yes, there are a lot of investment opportunities outside the country that are now available to you.

4.  Can the IRA funded LLC make loans with its funds? Yes, you can make loans to any person or entity if it does not constitute a prohibited transaction.

5.  Must I have a custodian for my IRA that is investing in an IRA funded LLC or any LLC?
Absolutely, all IRAs (no matter what they invest in) are required to be held by a custodian approved by the IRS. However, only a few custodians allow self-directed IRAs, we have a few great ones.

6.  Can the IRA funded LLC borrow funds to finance a real estate purchase?
Yes, but you will have to obtain a  non-recourse loan from a lending institution or a non-recourse type of promissory note from the seller of the property (our Mortgage division can help with this).

7.  What are the prohibited investments?
The only thing that the IRS says that you cannot purchase using your IRA is Collectibles and Life Insurance Contracts.  Thus, you can invest in anything that is not a prohibited investment or a prohibited transaction.   Prohibited transactions are considered any action that constitutes “self dealing.”

8.  What in specific are the investments that are prohibited?
The IRS outlines the following types of investments as Prohibited Investments;
artwork, rugs, antiques, metals, gems, stamps, coins, alcoholic beverages, life insurance contracts, stock in a S-corporation and certain other tangible personal property.
 
9. What is a prohibited transaction?
The IRC Section 4975 defines a prohibited transaction as follows:  "Any improper use of your IRA account by you, your beneficiary or any disqualified person.  Disqualified persons include the fiduciary of the plan assets and members or your family (spouse, ancestor of lineal descent, and any spouse of a lineal descendant."   According to the IRS, siblings, aunts, uncles, cousins and step relations are not included in the definition of disqualified persons.  The transactions not allowed are:  1. Investing in a prohibited investment. 2. Lending of money between a plan and a disqualified person. 3. Furnishing goods, services, assets or facilities between a plan and a disqualified person. 4. Transfer to, or use by, a related party of the income, funds or assets of an IRA. 5. Benefiting someone other than the IRA. 6. Doing business with a disqualified person such as; a sale or exchange, or leasing/renting of property between a plan and a disqualified person.

10.  Can my IRA funded LLC purchase Real Estate I already own?
No, this would be considered a prohibited transaction, or “self dealing” (see IRC Section 4975).

11.  Can I buy vacation property?
Yes, and doing so would not constitute a prohibited transaction. However, you cannot vacation there.

12.  In addition to real estate what investments can my IRA funded LLC purchase?
Limited liability companies, real estate commercial and residential, commercial paper, tax lien certificates, promissory notes,  corporate debt offerings, trust deeds/mortgages, commodities and futures, mutual funds, stocks, bonds, annuities, limited liability partnerships, hunt lease investments, race car investments, treasuries, bank CDs, timberland investments, currency exchange, timeshares, real estate options, and much more.
We can also assist you with investment ideas through our Real Estate, Mortgage and Investment Division. You can purchase the entire realm of investment vehicles with us as your Investment Advisor.
Consult with one of our investment advisors on the best course of action. If you decide that a self-directing your retirement investments is for you, Options is here to help.
We are the self-directed experts.
Take control of your retirement. Contact an Options professional to establish a self-directed IRA or open an account today.