While this would be a major accounting pain in general you can take an administrative fee of up to 0.5% so as long as rates are as crappy as they are you don't actually have to distribute the interest.

Lastly, as to forming a business entity, I'm not a fan of internet legal form sites, IMO they are at a minimum threshold of getting started without addressing specific administrative issues.

I also went on the states business site and saw that our LLC was disbanded administratively in 2011.

Thanks, Will, what I was getting at:Why would anyone operate an S-Corp, since it's more administratively burdensome?

You might pay some nominal annual fee to the plan administrator who set you up in the first place.

There are many, many companies on the Internet who promote their services for self-directed investors:  some are regulated custodians; others are administrators who must identify their custodian; yet others are "facilitators" helping investors set up certain structures prior to making a self-directed investment.6.  

Essentially anyone can be an administrator, and their main function is to perform administrative functions only.

The borrower executes a note to the company and the Operating Agreement directs that asset pledged to you in your capital account.It may sound complicated but it's really easy to carry on.The issue in reality is only having the borrower understand the partnership arrangement, not to hard, we partner until you pay me back.Can't help you with an attorney, but inform a good business attorney of this and it shouldn't be a problem.This is by far the best way for non-lender types to fund deals and avoid mortgage brokerage issues, licensing for lenders and foreclosures.In the event of default by a member, the member is removed from the LLC administratively and the property remains in the LLC.

An agent may be a Realtor, an Excutor or Administrator of an estate, a Trustee, or a representative.

This is the gold standard in self-directed retirement plans allowing you to contribute up to $49k per year tax free, with checkbook access, and no administrator such as Pensco or Entrust.