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Why a Checkbook Control IRA LLC?

by | Sep 7, 2020 | Checkbook IRA LLC Basics

The purpose of the checkbook control IRA LLC is to have checking account that holds your retirement funds allowing you, as manager of the LLC, to invest in what you choose and when you choose, without having to wait on a custodian to pull the trigger on your investment choices.  This gives you more control and it is also more convenient.

A checkbook control IRA LLC can also offer savings and a lower total cost if you use this strategy.  Most self directed IRA custodians will charge you an annual fee based on the number of assets you have in your IRA. For example, you invest in four rental properties with your IRA directly with a custodian.  Some custodians charge as much as $360 per asset, meaning in this case, the annual fee would total $1,440. That does not include the transaction fees you will be charged on an ongoing basis for each buy or sale. 

If you invest into an LLC that you manage and control, your IRA has invested in one asset, an LLC and now your LLC can go and invest in the 4 rental properties.   Your annual fee is based on one asset, the LLC.  In this scenario, the checkbook control IRA LLC would own the 4 assets and not the IRA, thus lowering your IRA fees and potentially increasing the return on investment.  More control, more convenience, more economical.

With us it really is as EASY as 1, 2, 3

1 – We help you open a self-directed IRA

Simply submit your information on our website.  We will also start the process of transferring your existing retirement account to your newly established self-directed IRA.

2 – We establish an IRA LLC on behalf of your self-directed IRA

Upon approval from the state we will send to you and to your custodian, the LLC operating agreement, the LLC approval documents, and your IRA LLC tax ID number.

3 – We open an LLC checking account on behalf of your newly established Checkbook Control IRA LLC

After the LLC has been approved, we will submit all of your information to one of our partner banks to open a free checking account.  The bank will send you signature cards via DocuSign.  After the account has been established, the custodian will wire funds to the bank to fund your investment into the LLC.  The bank will send you a checkbook and a debit card.  You are now ready to begin your investment journey.