Using Your IRA to Invest in an LLC

If you’re transitioning employment and looking for a smart way to use the retirement account you’ve been investing in, you might consider using a self-directed IRA to invest in an LLC. This option is perfect for those looking for an opportunity to benefit from owning a piece of a business, but not deal with the day-to-day managerial duties.

What is an LLC?

An LLC or Limited Liability Company is a business governed under a specific legal structure which offers certain tax advantages by the Internal Revenue Service (IRS) to the owner(s). The business owner receives the tax benefits and separates her business assets and liabilities from her personal assets and liabilities.

An IRA, like an individual person, can invest in an LLC and earn dividends on owned shares in much the same way stockholders or partners earn when a corporation profits. Because LLCs abide by certain federal laws, those wishing to invest in their businesses must also abide by those regulations.

The Benefits of the LLC Business Structure 

LLCs are affordable and fast to start. In many cases, LLCs are used as a pass-through entity for an individual doing business. However, they can also be more complex, with multiple owners or partners. LLCs that have pass-through status for tax reasons aren’t taxed at a corporate level, which is how IRAs and self-directed savings accounts can profit as an owner.

How to use an IRA to invest in an LLC

When your self-directed IRA invests in the business, the account becomes a partial owner of the business and earns profits just like an owner would. You can then leave the funds in your IRA account to earn interest, purchase additional shares in the LLC, or invest in another opportunity altogether.

How to Invest in an LLC 

The process at iPlanGroup is very simple, and we’ll walk you through it every step of the way. Here’s a brief outline of our process:

  1. You choose an LLC with investment opportunity for your self-directed IRA.
  2. You open and fund an IRA account with the team at iPlanGroup.
  3. You complete and submit a Direction of Investment (DOI) for the LLC.
  4. Your self-directed IRA funds are sent to your investment.
  5. You submit original supporting documentation to iPlanGroup.
  6. You enjoy your self-directed IRA’s LLC ownership.

Get Started with iPlanGroup

Whether you’re ready to get started today or you simply want to know more, the team at iPlanGroup can help you make the right decision for your financial goals. If you’ve ever considered owning and investing in a business you’re proud of, this could be the opportunity you’ve been waiting for.

Roll that old retirement account into a self-directed IRA and take control of your financial future with the professionals at iPlanGroup today. Schedule a FREE personalized strategy session, then decide if a self-directed investment can help you further your retirement goals.

FREE self-directed strategy session