The Ultimate Self-Directed IRA Investment Vehicle
Guidant's IRA LLC has become an increasingly popular investment for self-directed IRA Investors. An IRA LLC is a name for a process where a self-directed IRA invests in a newly formed LLC. In most cases, the LLC is owned 100% by the self-directed IRA and where the IRA owner serves as manger. There are many benefits to using this vehicle for your self-directed investments. These benefits can include:
- Checkbook control – the IRA LLC allows you to make timely investments into assets like tax liens and foreclosures that otherwise would be nearly impossible directly through a custodian.
- Limited Custodial Fees – regardless of how much money you have, or the amount of investments you make, an IRA LLC should not have to pay any transactional, asset or holding fees.
- True Diversification – purchase traditional investments like stocks, bonds and mutual funds in addition to real estate, tax liens, franchise or small businesses through the IRA LLC.
- Multiple Investors – when structured appropriately, an IRA LLC can you additional buying power and investment opportunities by combining investment capital from many sources.
Of course, there are some downsides. There are certain rules and regulations regarding IRA transactions that, if violated, can result in taxes and penalties. Regardless of whether you use a basic self-directed IRA or IRA LLC, the penalties are steep if you run afoul of the prohibited transactions. It is extremely important to use a very experience firm in handling these sorts of transactions. There are two primary reasons:
- Formation process: The formation of the LLC, and the investment by the IRA, needs to be completed n a particular process. If the IRA LLC is created in the wrong order, or if the LLC documents are not executed correctly, you can create a prohibited transaction. It can create a nasty IRS audit and thus why it could be a good idea to pay an IRA LLC facilitator(like Guidant Financial Group) to do it on your behalf. A small fee to pay to ensure it is done correctly is definitely worth it.
- Prohibited Transaction Analysis: LLC IRA facilitators should be familiar with prohibited transactions and have a duty to inform their clients when they see them about to commit a violation. Although a self-directed IRA owner is responsible for avoiding a prohibited transaction, facilitators will try to offer input if they see a potential prohibited transaction.
Guidant Financial Group is a recognized leader in self-directed IRAs. Our services have helped thousands of people in all 50 states to purchase gold, real estate, small businesses, mortgages, tax liens and more inside their retirement plans as an investment through an IRA LLC.
As the only self-directed IRA LLC provider named to the 2008 Inc. 500 list, no one is more qualified to help you than Guidant Financial Group – no one.
More Information: Self Directed IRA LLC & Small Business Financing
