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Limited Liability Companies (LLCs)

Combine the features of a corporation with the tax efficiency and flexibility of a partnership with an LLC. This retirement strategy allows you to truly diversify your portfolios while still maintaining control over your future.

  • Move faster

    Gain faster access to capital and investment opportunities with checkbook control.
  • Save costs

    Lower the custodian fees by handling day-to-day investments yourself.
  • Increase diversification

    Invest in a wide variety of opportunities across a vast array of options.

What is an LLC?

A limited liability company (LLC) is a corporation where the company members are not personally liable for company debt.

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There are many benefits of an LLC, including pass-through taxation, asset protection, limited compliance rules, and less rigid management structures.

Many have heard about LLCs concerning the process of starting a business. However, investors can also invest in LLCs as part of their retirement plan with a self-directed IRA.

With this option, LLCs can be used to truly diversify investments through a variety of investment avenues, including:

  • Real estate
  • Tax liens
  • Cryptocurrency
  • Equipment leasing
  • Venture capital
  • Oil, gas, and mineral rights

 

The IRS prohibits investing in collectibles, like artwork or jewelry, S-corporations, and life insurance.

Nevertheless, many people prefer investing in LLCs because it allows them to direct their money toward an industry or field they are passionate about. This flexibility can be a real selling point for certain investors.

Navigation Tip:

The books and records of the LLC, owned by an IRA, must be kept in accordance with IRS regulations for IRAs. Don't ignore the IRS' prohibited transaction rules!

How To Invest With LLCs

We encourage our investors to do adequate research or contact a broker/financial advisor, attorney or CPA, to determine if an LLC is an appropriate investment.

Once you have determined that an LLC is suitable for you, it can be purchased with your Self-Directed IRA or another retirement account at Mainstar Trust. Click below to find out how to use a Mainstar Trust account to invest in an LLC.

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