IRA LLC - Using the cheapest state?

[Jon Rambis]

I'm thinking of establishing a Checkbook IRA / IRA LLC to make both real estate and non real estate investments. My question is does it matter which state I use for the LLC?

I think the real estate properties need to be owned by an LLC formed in the same state as the property (because nexus?) , but since each property should really be in a separate LLC, can't the root LLC be in a state with low fees / no reporting requirements like New Mexico?

Basically I'm asking if I can / should do this:

- Create an IRA LLC structure with the LLC being in New Mexico / Arizona
- Create nested LLCs for any real estate investments, ex. an Illinois LLC for an Illinois property