SDIRA - LLC or Trust

[George Vegis]

First time posting so my apologies if I am posting to the wrong forum.

I've been looking into using a self directed IRA for real estate investing (Trust Deed & Private placements). I've been talking to a few Trust companies and most do offer a checkbook LLC or custodian managed. I also came across a self directed Trust IRA. The advantage of this is that I don't have to pay the ~$800 annual fee for the LLC with the state of California but I do get full checkbook control.

Questions:

1. Has anyone done a self directed trust IRA. If so, are there any tax filing requirements at the state or federal level other than the IRS 5498 which will be done by the custodian.

2. If I choose to go with the Checkbook LLC, can I incorporate in a state that has a lower fee than California.

Any help or suggestions will be much appreciated.

Thanks.