Transcription
Take Charge ofInvestmentsWith an IRA LLCTheEntrustGroup.com800.392.9653
The Entrust Group ("Entrust") does not provideinvestment advice or endorse any products.All information and materials are for educational purposes only. Allparties are encouraged to consult with their attorneys, accountantsand financial advisors before entering into any type of investment.TheEntrustGroup.com800.392.9653
Agenda1Self-Directed IRA Basics2Introduction to Limited Liability Companies3Benefits & Drawbacks4How to Create & Maintain an LLC5Learning the Rules6Misconceptions & Risks7Q&ATheEntrustGroup.com800.392.9653
Meet Your PresenterJohn Paul RuizDirector of Professional Development at The Entrust Group26Years of retirement education developmentEducating investors and professionals ontax-preferred retirement accountsCISP and QKA certifiedTheEntrustGroup.com800.392.9653
About Entrust 4B22k401Assets UnderAdministrationActiveAccountsYears ofServicePoint ofContactTheEntrustGroup.com800.392.9653
About Entrust Self-Directed IRA administrators Knowledgeable staff with CISP designations Nationwide offices In-person events and virtual webinars National Continuing Education programfor other credentials Bi-annual IRA AcademyTheEntrustGroup.com800.392.9653
What is a Self-Directed IRA?A retirement account in which the individual investoris in charge of making all investment decisionsGreater opportunity for asset diversification outsideof traditional stocks, bonds, and mutual fundsAll securities and investments are held in a retirementaccount administered by a regulated custodian or trusteeTheEntrustGroup.com800.392.9653
Benefits of Self-DirectionTake ControlDiversificationTax BenefitsTheEntrustGroup.com800.392.9653
Demystifying Limited Liability Company (LLC)as an IRA Investment:Common Investor Questions“Is it legal to have an LLC investment?”“Why are investors using IRA LLCs to invest?”“Do I need to establish an LLC to invest with a SDIRA?”TheEntrustGroup.com800.392.9653
Building a FoundationWhat is a Limited Liability Company (LLC)?TheEntrustGroup.com800.392.9653
History of LLCs in IRAs: How Did We Get 2.9653
Benefits of an LLCLimited LiabilityCheckbook ControlFaster TransactionsFewer Administrative FeesTheEntrustGroup.com800.392.9653
Understand the DrawbacksLegality is not clearly definedAnnual cost that may vary per statePotential additional state tax filingsAll income must be redeposited to the IRAHigher potential to engage in a prohibited transactionAdditional tax filings (Federal: trade or business income) Taxed at trust rates Double taxationTheEntrustGroup.com800.392.9653
IRS Publication 3125TheEntrustGroup.com800.392.9653
Prohibited InvestmentsLife InsuranceCollectiblesS CorporationsTheEntrustGroup.com800.392.9653
How to Create an LLCStep 1: Complete Legal Due DiligenceReview LLC laws for the state of establishmentTheEntrustGroup.com800.392.9653
How to Create an LLCStep 2: Assign Key RolesMemberManagerRegistered AgentNaming an LLC MemberThe Entrust Group FBO (client name) IRA (account number)TheEntrustGroup.com800.392.9653
How to Create an LLCStep 3: Create Articles of OrganizationLLC Name & AddressRolesFuture Formation DateTheEntrustGroup.com800.392.9653
How to Create an LLCStep 4: Create Operating AgreementStructure per state requirementsState roles and terms of operationSigned by manager of LLCTurn into state for approvalTheEntrustGroup.com800.392.9653
How to Create an LLCStep 5: Acquire EIN for Approved LLCRequest an EIN for the LLC: Some use thename of the IRA especially if the IRA mustfile a return called the IRS Form 990-T fortaxable incomeTheEntrustGroup.com800.392.9653
How to Create an LLCStep 6: Create Subscription Agreement forthe IRA as the investorOutline transaction terms between the IRA & LLCLLC shares & member interestProvide verification that the IRA holder hasreviewed and approved the subscription agreement,and is ready for the custodian/trustee to signTheEntrustGroup.com800.392.9653
How to Fund an LLCSend instructions to the Custodian/Trustee to: Sign the subscription agreementSend funds to the LLC checking accountFlow of FundsLLC Issues Shares to IRA IRA LLC Bank AccountTheEntrustGroup.com800.392.9653
Maintaining an LLCFollow The RulesProper Tax ReportingCash Flow HealthTheEntrustGroup.com800.392.9653
Learning The Rules: Disqualified PersonsYouGrandparentsSon Daughter Grandson GranddaughterSpouses of disqualified personsAnyone with 50 % ownership Corporations, partnerships, estates or trustsTheEntrustGroup.com800.392.9653
Learning The Rules: Prohibited TransactionsSALE,EXCHANGE &LEASINGLENDINGFURNISHINGOF GOODS,SERVICES ORFACILITIESINCOME & ASSETSTheEntrustGroup.comSELF-DEALING800.392.9653
Debunking LLC Misconceptions“I have zero liability”“I can pay myself a management salary”“I can never partner with friends or family”“I can pay for expenses with personal savings”TheEntrustGroup.com800.392.9653
Remember: Risk is Always InvolvedLosing IRA Tax Qualified StatusProhibited Transaction PenaltiesPoor Maintenance Can be CostlyTheEntrustGroup.com800.392.9653
The Alternative to LLCs: myDirection CardSave TimeSave 392.9653
What’s Next?Want more information regarding today’s topic?Complete our brief webinar surveyNeed more information on SDIRAs?Visit our website and Learning CenterFollow us on social media for updatesTheEntrustGroup.com800.392.9653
Time for QuestionsTheEntrustGroup.com800.392.9653
Stay ConnectedDirector of Professional Developmentjpruiz@theentrustgroup.com(510) 316-0488John Paul RuizTheEntrustGroup.com800.392.9653
Education is the passportto the future, for tomorrowbelongs to those whoprepare for it today.- Malcolm XTheEntrustGroup.com800.392.9653
With an IRA LLC. TheEntrustGroup.com 800.392.9653. The Entrust Group ("Entrust") does not provide investment advice or endorse any products. All information and materials are for educational purposes only. . Demystifying Limited Liability Company (LLC) as an IRA Investment: Common Investor Questions .
