How to setup a Self-Directed IRA as an LLC?

[Adam Scheetz]

My strategy for investing includes Buy & Hold, financing flips, and of course Lease Options!

How can I best setup an IRA in which I can own an LLC to purchase and acquire properties, that are LLC's themselves?

Sorry if this is convoluted. I'll attempt to clarify if the previous statement is confusing.

1. I want an IRA in which I can dump money and use said money for investing and reinvesting.
2. Do I need to OWN an LLC within my IRA in order to purchase these properties?
3. Once acquired, I intended to setup an LLC for each property that I plan on holding long term.

I look forward to some far more intelligent people offering their opinions.

Thanks,

Adam Scheetz

[Brian Eastman]

@Adam Scheetz

There are several professionals here on BP that specialize in creating such structures, and more importantly, helping you to understand how to use the entity properly per the IRS guidelines.

One does not "dump" money into an IRA. IRA contribution rules are limited, and depending on your situation may allow for between $6,000 and $56,000 in annual contributions, with larger number requiring quite profitable self-employment on your part. Typically one rolls over funds from an existing retirement plan into a self-directed IRA or 401(k).

The IRA needs to be established with a specialty custodian that can document things beyond the stock market. The IRA will be the sole owner of the LLC. This LLC needs to be crafted in a manner that properly reflects the IRA's ownership and addresses the tax-compliance matters associated with that ownership.