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

[Dwayne Dilbeck]

@Jon Rambis I would recommend determining your target state first and setup your LLC there. In my case I started my LLC in Michigan as that is where my first target investment was. Other states do have cheaper annual fees. Later your LLC can register in each new state as a a Foreign LLC as it grows.

@Christian Sifuentes  - If the state requires a registered agent, you are out of luck. You will have to spend $80-100 annually for the agent.   Michigan has this requirement.  I just setup with InCorp,  $67/year when purchased for 5 years.

I can not comment on the service yet, give me a few months then I can comment