Best way to setup an LLC for two Investors and possibly use a SDIRA
I good friend and I have discussed flipping houses before but never created an LLC or invested. He has attended some auctions and saw some interesting properties. We have finally come to a point where we are ready to setup a LLC and get started. I've heard of setting up a Self Directed IRA for real estate investing and think it sounds interesting.
Taking that into info account, I have four questions:
1. What is the best way to setup an LLC?
2. What state is best suited for it? We live in Illinois
3. is it possible to roll over part of an existing IRA into a SDIRA for use a LLC?
4. Is it possible to contribute finds from an SDIRA and Regular funds from my friend/partner who will be the 2nd party in the LLC?
Has any one done this without IRS audits or IRS related problems? I know there are strict IRS guidelines for investing from an SDIRA and i'd like to get the correct info from active investors in the business.
Thanks for your suggestions,
Tony