Is LLC necessary or recommended for note investing in SDIRA?

[Keith Groshans]

I am new to the note investing space and am interested in investing in performing loans or debt funds with an SDIRA. I understand that outside an IRA an LLC is typically recommended for note investing. Does this recommendation hold for investing in notes with SDIRA? If SDIRA LLC is recommended, should I be concerned about UBIT or would this only potentially apply if I invest in a leveraged fund?