Self Directed IRA LLC Facilitators

Self-directed IRA LLC facilitators are simply companies that help people set up self-directed IRA LLCs. Properly setting up a self-directed IRA LLC requires a level of tax and legal knowledge that most people don’t have. As the self-directed IRA industry has grown, so too has the number of these companies looking to help people set up self-directed IRA LLCs. If you are not a tax attorney, it is probably a good idea to seek help if you want to set up a self-directed IRA LLC, however, finding the right help is critical.

What do Self-Directed IRA LLC Facilitators do?

Self-Directed IRA LLC Facilitators have a few key jobs that they should be performing for their clients:

  1. Help create a new self-directed IRA account for you with a licensed self-directed IRA custodian
  2. Create an LLC on your behalf, and ensure it is properly structured
  3. Assist you with rolling over your IRA funds into the new self-directed IRA
  4. Help ensure that the self-directed IRA’s investment into the LLC is done correctly
  5. Answer your questions, and educate you on how to avoid prohibited transactions
  6. Make the process as simple as possible for you

Self-directed IRA facilitators should never handle your money directly. They will assist you with filling out rollover documents, setting up bank accounts and so on, but they should never actually handle your IRA funds.

Tips for Choosing A Self-Directed IRA LLC Facilitator

  1. Make sure they are a legitimate business. There are a lot of fly by night companies popping up calling themselves self-directed IRA facilitators. Here are some tips for ensuring a company is legit:
    • Do they have a physical business location (that is not their house)? Do a quick Google street view search to verify.
    • Do they have a BBB file open?
    • Does their website look professional, or like something that was thrown up in 5 minutes by a high school kid?
    • Do they have employees listed on professional sites like LinkedIn?
  2. Make sure they have a tax attorney(s) on staff. If you are going to pay money for their professional advice/help, make sure you are actually getting professional advice/help. Get the name(s) of their attorney(s), and verify that they are licensed to practice law (can be done online via sites like this).
  3. Will they continue to answer your investment questions after you set up the self-directed IRA LLC? Investing with a self-directed IRA LLC gives you a lot of control, and does not require a custodian company to sign off on investments you make. To ensure you don’t unknowingly enter into a prohibited transaction, it is a good idea to run your investments by a professional. Quality facilitators will be there for you to answer any questions you have – even after they help you set up the LLC.
  4. What are the ongoing custodial fees they charge? Most facilitators are not custodians, but they typically have arrangements with custodians who provide discounted fees for their clients.

To help with your search, NuWire has compiled a list of self-directed IRA LLC facilitators.