The LLC Operating Agreement is the core document that is referred to when issues concerning the LLC need to be resolved. The LLC Operating Agreement is the most important document for your Self-Directed IRA. It is extremely important that you create an Operating Agreement for your Self-Directed IRA LLC.
How Does the Self-Directed IRA LLC Work?
The Self-Directed IRA LLC with “checkbook control” has quickly become the most popular vehicle for investors looking to make alternative assets investments, such as rental real estate that require a high frequency of transactions with limited liability protection. Under the checkbook IRA format, a limited liability company (“LLC”) is created which is funded and owned by the IRA and managed by the IRA owner. The “checkbook control” self-directed IRA allows one to eliminate certain costs and delays often associated with using a full-service IRA custodian, offers limited liability protection, as well as provides the IRA owner with a greater level of privacy. The Checkbook IRA LLC structure allows the investor to act quickly when the right investment opportunity presents itself cost-effectively and without delay.
The Self-Directed IRA LLC Operating Agreement
The standard LLC Operating Agreement will not meet the requirements for your Self-Directed IRA LLC. In general, a self-directed IRA LLC Operating Agreement should include special tax provisions relating to “Investment Retirement Accounts” and “Prohibited Transactions” pursuant to Internal Revenue Code Sections 408 and 4975. In addition, since the LLC will be managed by a manager and not the member, the Operating Agreement would need to include special management provisions. Additionally, starting in 2024, the Corporate Transparency Act (CTA), requires a self-directed IRA LLC to file a beneficial ownership interest (BOI) report with FinCEN. Hence, this is why it is so important to work with a self-directed IRA provider that can make sure that your IRA LLC and related documents, including the LLC operating agreement, stay up-to-date and current with IRS rules and laws.
It is extremely important to have a properly prepared Operating Agreement to fit your LLC’s needs and meet the Internal Revenue Service requirements for a Self-Directed IRA LLC. In fact, a copy of the LLC Operating Agreement will be required by the Custodian and also by the bank where you will have your LLC’s checking account.
IRA Financial Group will generate a special purpose self-directed IRA LLC Operating Agreement that all IRA passive custodians have approved. The special purpose self-directed IRA LLC operating agreement has been drafted by tax professionals who worked at some of the largest law firms in the country such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP. With our work experience at some of the largest law firms in the country, our tax knowledge in this area is unmatched.
The IRA Financial Difference
IRA Financial is one of the only self-directed IRA providers that is tax attorney-owned and operated. We “literally” wrote the book on the self-directed IRA LLC. We have helped over 24,000 retirement investors invest over $3.2 billion in alternative assets. What sets IRA Financial apart from other IRA companies, is that not only will we establish the self-directed IRA LLC, but we will also design and customize your self-directed IRA LLC structure to meet your investment and retirement goals, on top of providing on-going administration, recordkeeping, tax reporting, tax filing, and one-om-one self-directed IRA LLC consulting services.
IRA Financial self-directed IRA LLC operating agreement is specifically designed and customized for each type of investment. Whether it is real estate, private equity, venture capital, hedge fund, private business, cryptos, precious metals, hard money loans or much more, our self-directed tax experts will work with you to design the perfect self-directed IRA LLC solution for your investment. Additionally, IRA Financial is the only self-directed retirement company that provides annual consulting, IRS tax reporting/filings, BOI FinCEN reporting, and IRS audit.
See for yourself why IRA Financial is one of the leading providers of self-directed IRAs in the country:
- Customized self-directed IRA design for your investment
- File Article or organization with the State
- Draft customized LLC operating agreement
- Complete W-9
- Acquire Tax ID# for the LLC
- Flat annual fees
- No transaction or asset value fees
- No wire of check fees
- IRA & 401(k) personalized rollover support
- IRS tax reporting, including IRS Form 5498 & 1099-R
- BOI Reporting with FinCEN
- LLC IRS tax filing (Form 1065) and UBIT tax filings (Form 990-T)
- Free self-directed Roth IRA conversion
- Free RMD support
- Free tax research on self-directed IRA topics
One-on-one tax support on the “disqualified person” and “prohibited transaction rules.”
- One-on-one tax consultation on UBTI and UDFI rules
- Free access to our best-selling Self-Directed IRA books
- Free access to our educational webinars, podcasts, and newsletters
- Self-directed IRA IRS audit guaranty
- Free HSA & Coverdell account for year 1 (value of $920)
