Speak with a Broad specialist:
(800) 395-5200Schedule a CallOpen an Account
Speak with a Broad specialist:
(800) 395-5200Schedule a CallOpen an Account

Self-Directed IRA LLC and How to Benefit From One

Learn about the simple way to invest in alternatives with checkbook control, then get control of your retirement planning with Broad Financial.

What is a Self-Directed IRA LLC?

A Self-Directed IRA LLC with checkbook control is a powerful retirement account that enables you to invest in real estate and other alternative assets in real time, without paperwork or transaction fees.

Advantages of an IRA LLC

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Checkbook Control

The investment process for a Self-Directed IRA LLC with checkbook control is easy and hassle-free. Purchase an asset by simply writing a check or sending a wire from your dedicated checking account and the asset is automatically owned by your IRA.

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Maximum Wealth for Retirement

The dedicated IRA LLC checking account allows you to make investments in real time and avoid the expensive transaction fees that are normally associated with Self-Directed IRAs.

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Liability Protection

Unlike other self-directed retirement plans, an LLC provides asset protection that safeguards the IRA, IRA owner, and IRA custodian from liabilities that may arise from investments owned by the IRA LLC. This additional layer of liability protection is not found in a classic Self-Directed IRA.

What Can an IRA LLC Invest In?

With a Self-Directed IRA LLC with checkbook control, you have the freedom to invest in almost any asset. A Checkbook IRA LLC is ideal for time-sensitive investments and investments with many transactions, as all transactions can be completed quickly and easily.

Here are some investments you can make with a Self-Directed IRA LLC:
Real Estate (rental properties, raw land, residential or commercial real estate, private REITs, and beyond!)
Private Business and Startups
Tax Liens and Deeds
Private Loans
Limited Liability Companies (LLCs) and Partnerships
Private Placements
Hedge Funds
And any other IRS-compliant alternative assets!

Get Answers to Your Questions About Self-Directed IRA LLCs

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Self-Directed Specialist.

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Do you have questions about the Self-Directed IRA process? Speak with a Broad specialist and get answers.

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Can I Set Up an IRA LLC on My Own?

The short answer is yes; you can set up an IRA LLC on your own. However, you must ensure that the LLC is set up according to IRS and ERISA (Employee Retirement Income Security Act) laws to obtain tax advantages. That means you must take particular care with the IRA LLC Operating Agreement. Essentially, the IRA LLC Operating Agreement must state that the LLC will operate according to the rules and regulations of ERISA law.

By choosing Broad Financial to set up your IRA LLC, you can be confident that your account is set up correctly. Broad Financial will create a specialized, IRS-compliant LLC for your IRA and take care of the paperwork so you can have a seamless experience.

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Where Can I Set Up an IRA LLC Bank Account?

You have the freedom to set up a designated IRA LLC checking account at the bank of your choice. Typically, the Self-Directed IRA LLC account holder is the non-compensated manager of the LLC and manages the investments through the IRA LLC checking account.

The designated IRA LLC bank account gives you the power to write checks on behalf of the Self-Directed IRA without having to go through the custodian for each transaction. The IRA LLC bank account provides speed, reduced cost, and flexibility.

Does the LLC Have to File a Tax Return?

No, the LLC does not have to file a tax return. Since the self-directed retirement plan's LLC is set up as a pass-through entity, there is no corporate tax and no personal tax required. This is because the Self-Directed IRA (not the account holder) owns 100% of the LLC, which is tax-sheltered.

How To Set Up a Self-Directed IRA LLC

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Open and Fund a Self-Directed IRA

Complete Broad Financial’s easy online application. Simultaneously, open a new Self-Directed IRA with our sister company, Madison Trust. Madison Trust serves as your IRA custodian and Broad Financial upgrades you to the IRA LLC.  

Next, transfer or roll over funds from a previous retirement account, such as an IRA or 401(k), or make an initial contribution.  

Icon smart phone and tablet establishing a LLC

Establish an LLC for your IRA

Broad Financial will create a specialized, IRS-compliant LLC for your IRA and take care of the paperwork. We customize each LLC to conform to all rules and regulations governing Self-Directed IRA LLCs and appoint you as your LLC's non-compensated manager, authorizing you to place all investments.
Icon investor holding money and increasing graphs in the back showing that he opened and funded his IRA LLC checking account

Open an LLC Checking Account
and Fund the LLC

Open a checking account in the name of the LLC at the bank of your choice. This upgrades your IRA LLC to the power of checkbook control! Then, instruct Madison Trust to send funds to the IRA LLC checking account. This is the only transaction you must direct the IRA custodian to place (until you withdraw or distribute funds from your IRA itself).
Icon investor facing forwards pointing at an increasing trend graph to show how his investments have grown in his IRA LLC

Invest in Alternatives in Real Time

Start investing with the power of checkbook control by simply writing a check or sending a wire from your new LLC checking account. Since the specialized LLC is owned by your IRA, all of the assets purchased are automatically part of your tax-advantaged retirement account.

What is Checkbook Control? 

Checkbook Control is the term used when a Self-Directed IRA account holder has complete signing authority over an account that has access to their retirement funds. With checkbook control, the account holder can invest directly in alternative assets without the need for a custodian to perform everyday transactions. A Self-Directed Checkbook IRA LLC provides the ability to act on time-sensitive investments and eliminates transaction fees. The checkbook control strategy is achieved through the establishment of an LLC owned by the Self-Directed IRA.

The 3 C's of Checkbook Control (1) Control - YOU control all of your investment decisions (2) Cost - YOU save money by avoiding asset-based fees (3) Choice - YOU have the freedom to invest in different types of assets

Self-Directed IRA LLC - FAQs

How long does it take to set up an IRA LLC?

The timing depends on the speed at which your current custodian/banking institution processes the transfer request and how quickly your state files the new LLC. From start to finish, most IRA LLC accounts can be set up in two to three weeks.

Can I open an IRA LLC as a Roth IRA? 

Yes! An IRA LLC can be opened as a Roth IRA. In a Roth IRA, the account holder pays taxes up front, and in turn, all investment earnings can be taken out tax-free in retirement. You may also choose to have a Traditional, SEP, SIMPLE, Inherited Traditional, or Inherited Roth Self-Directed IRA.

Can an IRA LLC invest in a foreign property? 

Yes! In fact, an IRA LLC is the best platform for self-directed foreign investments. Be sure to conduct proper due diligence of the logistics involved in operating a foreign property with your self-directed retirement account.

What is Broad Financial's role in IRA LLC creation?

Broad Financial will complete the following:

• Register a limited liability company with the Secretary of State's office (typically in the state where the IRA property is located) and file articles of organization. Note that each state has different rules and regulations regarding establishing an LLC. You may want to review the rules for establishing an LLC in your state.

• Prepare a specialized LLC operating agreement with provisions related to the IRS and ERISA rules outlined in IRC Sections 408 and 4975, including prohibited transactions, disqualified persons, and undue compensation.

• Obtain an Employer identification number (EIN) for the LLC from the IRS. The EIN is associated with your IRA, notifying the IRS that the LLC is a tax-advantaged account.

• Provide you with a simple IRA LLC user guide that outlines what you can and cannot do within your IRA LLC.

Contact Us

One Paragon Drive
Suite 270
Montvale, NJ 07645

Phone: (800) 395-5200

Mondays – Thursdays: 8:00 am – 6:00 pm EST
Fridays – 10:00 am – 4:00 pm EST


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