John Worley Blog

Checkbook Control IRA LLC in in Dallas, TX

John Worley - Thursday, August 10, 2017

Investing in Your Future

A checkbook control IRA LLC is a term used when a self-directed IRA owner forms an LLC providing them with complete signing authority over their retirement funds. As the Manager of your funds and an LLC, possessing signing authority allows you greater freedom and flexibility to invest the funds without seeking the permission of the IRA custodian. By eliminating custodial permission, you can act quickly on investment opportunities without the traditional two to three day waiting period. You may also avoid the custodial fees involved with transactions and investments. A checkbook control IRA LLC  is an IRS and tax courts approved, and is a legal company that will be issued a tax ID number.

Checkbook Control IRA LLC in in Dallas, TX

A checkbook control IRA LLC  allows you to make non-traditional investments. It is especially popular among real estate investors, and allows you to manage assets, and control your retirement goals. While real estate is popular, you can invest in a number of options, including precious metals, franchises, foreclosures, private business entities, foreign currency and other investments. In addition, you can rollover a 401K into the LLC when you retire. You also have the option to close other IRA accounts and move them into your LLC to increase your investment potential.

You may continue to have a custodian who oversees the account, but no transaction fees are involved with investment activity and/or transactions in checkbook control. When the custodian is required to oversee the account, a small annual fee may be charged.

Establishing Checkbook Control

Once you have an idea as to how you want to invest your retirement funds, become familiar with the market of your choice. We offer expert advice for a checkbook control IRA LLC, assisting you to establish a solid investment strategy for expanding your wealth and securing your retirement future.

Setting up a checkbook control IRA LLC  requires the establishment of an LLC that is owned by your IRA. You will also  prepare and file the Articles of Incorporation, and apply for a Federal Tax ID number,. Once obtained, you will be able to set up a bank account in the LLC's name.  As the manager of your LLC, you will receive a checkbook and the control of your retirement funds for specific investment purposes. Once it is set up, you will no longer be required to receive approval from your custodian for each investment.  The decisions of investment are yours, and you can act immediately when opportunities arise, or when you need fast access to cash for repairs and maintenance.

Your Job as Manager

As the manager, and without a custodian in control, it is your responsibility to recognize qualified investment opportunities. While the advantages are numerous with an checkbook control IRA LLC, due diligence is recommended. For example, being aware of potential costs you may be responsible for, member limitations and other factors that can affect your LLC.  Furthermore, you must decide how much to invest, and when to divest. It is also your responsibility to closely monitor the portfolio, ensuring the capitol is preserved and recognizing additional opportunities that can increase your retirement funds even further.

As Manager, it is also your responsibility to ensure compliance with all state laws that will apply to your LLC, and the IRS rules involved. Your LLC is a business entity, subject to all the rules of any other business, and the failure to comply with the rules and laws can result in fines and penalties against your LLC.

Checkbook Control IRA LLC:

  • Can reduce the amount of administrator’s fees you will have to pay for investments.

  • Can eliminate the delay required with a IRA when you need to act fast on an opportunity. A checkbook control IRA LLC provides you with more control of your assets.  

  • Permits the required accounting to be provided by the LLC Manager or advisors.

  • Allows you to make the decisions of when and where to invest your retirement funds.

Beneficiaries of the Checkbook Control IRA LLC

Long-term considerations for your checkbook control IRA LLC include your post retirement plans for the LLC. In addition, you will need to decide who the beneficiaries will be of the LLC. Once you have made this decision, you will need to complete a specific form when setting up your account. You cannot simply specify the beneficiaries through a will. If you change your mind later and want to add or change one or more beneficiaries, you can do so by filing an updated form.

Speaking with a qualified expert prior to setting up your checkbook control IRA LLC is highly recommended. Select an expert with expertise in a checkbook control IRA LLC, and its regulatory aspect. In addition,  it is beneficial to choose an expert who possesses the expertise to provide guidance regarding the best strategy to build wealth respective to your post-retirement plans. A qualified professional with experience can assist you to achieve a strategy and to recognize investments that will earn the maximum funds.  

Most importantly, when considering a checkbook control IRA LLC, remember that it not only offers maximum earning potential,  but also that there is the risk of losing your retirement funds. With careful consideration before setting up the checkbook control  IRA LLC, your chances of success will be higher, and your retirement better secured.  John Worley Attorney at law can assist you in establishing a solid platform for your investment, and the guidance you require.

If you would like to obtain greater control over your IRA funds,  contact us today for a no-obligation consultation. The firm of John Worley Attorney at Law offers extensive experience, flexibility and a seamless integration for increasing your retirement funds with a checkbook control IRA LLC.

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