Buying a business with a SD-IRA | Profits & Taxes

[Loc R.]

I am trying to find answers, but they are hard to come by.

Let's imagine the following scenario:

I come across a person who wants to sell his retail store. Let's say he sells widgets.

So, my SD-Roth IRA buys the LLC (Widgets, LLC). I know that in this type of setup, I cannot run the business, so I hire the current store manager to be the required 3rd party manager.

Widgets, LLC makes $1000 in gross sales.
-$500 for rent
-$300 for payroll
-$100 for utilities, inventory, etc.

That leaves $100, which the manager then sends to the SD-Roth IRA.

In this scenario, would that mean that the LLC itself shows 0 profit, and at the end of the year, is only liable for the $800 annual fee and payroll taxes on the one employee/manager?

Or am I missing something?