| "So many investors are tired of watching | | | | corporation while it can be taxed as a |
| their retirement accounts dwindle away from | | | | partnership. Partnership taxation is great |
| the lackluster performance of the stock | | | | because the LLC itself will not pay taxes. |
| market, while the value of their home and | | | | Instead, the owner of the LLC pays taxes as |
| surrounding areas increase in the double | | | | if they earned the income. Who is the owner |
| digits," said Marco Caporale, President and | | | | of the LLC? Your IRA is the owner of the |
| CEO of Independent Executive Management, LLC. | | | | LLC(a tax- exempt entity). Therefore, you |
| | | | can maximized your investment and pay no |
| Although using your retirement account to | | | | taxes, what a deal. |
| purchase real estate does offer the potential | | | | |
| for two to three times the annual | | | | What are the "alternative investments" |
| appreciation of traditional stocks, it does | | | | mentioned above? They are too multiple to |
| come with a lot of regulations and severe | | | | mention here but I will try:real estate, |
| penalties, if not correctly applied. That is | | | | other LLC's, franchises, unsecured loans, |
| why the right account has to be set up, the | | | | corporations, mortgage notes, commodities and |
| rules have to be followed and a good | | | | futures, joint ventures, tax liens and tax |
| custodian can help. It is not difficult and | | | | deeds, currency exchange, times shares, |
| it can be done and many are doing it and | | | | limited partnerships, timberland investment, |
| making great money for the future. | | | | real estatle options, commercial paper, hunt |
| | | | lease investments, stocks, bonds, mutual |
| If you read this far you are thinking, "I | | | | funds, annuities, ect. |
| have heard of this before and all I have to | | | | |
| do is open a self-directed IRA." However, to | | | | Is the concept of an IRA owned LLC legal? |
| truly set your IRA free, (what many call | | | | Yes, and the case Swanson VS. The |
| checkbook control IRA), a couple of steps | | | | Commissioner in 1996 cleared up any doubts |
| have to be taken that will give you total | | | | that anybody had about this issue. In this |
| control of your IRA funds and profound asset | | | | case the court rejected the IRS position that |
| protection. Yes, your IRA's, other | | | | the business structure constituted a |
| retirement accounts, and other investments | | | | prohibited transaction. The IRS was so wrong |
| are not protected from law suits and you can | | | | that the judge had the IRS refund legal fees |
| loose your nest egg. | | | | to MR. Swanson. |
| | | | |
| Let me start by giving you some background | | | | How can you create this magnificent business |
| information. First of all, most custodians, | | | | structure to increase money for your |
| even true self directed custodians, require | | | | retirement years? Here are the simple steps: |
| massive amounts of paperwork and numerous | | | | |
| hoops to jump through in order for you to | | | | 1. Open a self-directed IRA account. 2. |
| invest your IRA money in an "alternative" | | | | Transfer your IRA assets to the new, |
| investment. This costs you time and money | | | | self-directed IRA account. 3. Establish a LLC |
| (custodian fees). To more effectively use | | | | in the state of your desire. 4. Apply for |
| your IRA, your IRA will instead place all of | | | | your LLC's employer's identification number |
| its assets into a limited liability company | | | | (EIN). 5. Set up a brokerage account or bank |
| (LLC). Therefore, there is only one asset to | | | | account for your LLC. 6. When you are ready |
| be declared by the custodian to the IRS and | | | | to invest instruct the custodian to place the |
| this translates to fewer fees to you. Notice | | | | IRA assets into the bank account or brokerage |
| I did not say that your custodian manages | | | | account of the LLC. 6. Start checkbook |
| your IRA. Then who manages the IRA? well, | | | | investing. |
| you of course. | | | | |
| | | | Finally, you can move into the sef-directed |
| Why an LLC? The LLC gives great asset | | | | IRA owned LLC other retirement plans, 401ks, |
| protection and tremendous tax advantages. The | | | | 403B and have other investors joint in with |
| LLC enjoys the asset protection of a | | | | you. Good luck and happy investing. |