LLC's and Self-directed IRA's

[Jeffrey Mcintyre]

Good afternoon BP members,

Question:

I found an opportunity to invest in a Real Estate property. However I would like to do this via a Self-Directed IRA account.

Would I need to create a separate LLC for the Self-Directed account( essentially having two LLC's..one for my business and one for the SD-IRA)? or can I just create a single LLC for my real-estate Business and have the Self-Directed account listed as a member?

any help would be greatly appreciated.

[Dmitriy Fomichenko]

@Jeffrey Mcintyre

Brian is correct, IRA LLC structure will required separate, single-member special-purpose LLC. Since you are considered "disqualified person" to your IRA your personal involved would result in prohibited transaction.

It has many advantages but LLC is not required to own a rental property in your IRA. You can do so directly in the custodial account. The custodian would hold the title of the property on behalf of your IRA and all transactions must be done through the custodian.