Attorney in Virginia to LLC for Self Directed IRA
Yorktown, VA · Member since 2015 · 11 posts · 2 votes
I know there are Self Directed IRA Custodians that can help set up a LLC for checkbook control, but I would rather deal with a local attorney, if possible.
I live in Yorktown, VA.
So the Peninsula or Norfolk/Virginia Beach is preferred. Richmond is also an option.
Thanks,
Ron Thompson
I met with attorneys from VA Beach to Williamsburg, including one in Yorktown and none impressed me in terms of what I wanted to accomplish. I ultimately went with a national firm. That's not to say you won't find one but I would focus more on the expertise than the location. A "Checkbook LLC" is not something that is really location specific and you definitely want to set it up and run it correctly because the consequences for not doing so could be severe.
I met with attorneys from VA Beach to Williamsburg, including one in Yorktown and none impressed me in terms of what I wanted to accomplish. I ultimately went with a national firm. That's not to say you won't find one but I would focus more on the expertise than the location. A "Checkbook LLC" is not something that is really location specific and you definitely want to set it up and run it correctly because the consequences for not doing so could be severe.
Ronald, I agree with @Edward B., this is pretty specific area of expertise and you may not find an expert locally and your criteria should be the expertise, knowledge, client reviews and the quality of customer service rather than location. There are several experts specializing in IRA LLC, interview few, compare and select the one you like the best.
That is what I expected. Thanks for the replies.
I met with attorneys from VA Beach to Williamsburg, including one in Yorktown and none impressed me in terms of what I wanted to accomplish. I ultimately went with a national firm. That's not to say you won't find one but I would focus more on the expertise than the location. A "Checkbook LLC" is not something that is really location specific and you definitely want to set it up and run it correctly because the consequences for not doing so could be severe.
Who did you end up using?
I was trying to accomplish something different. I was overhauling my estate plan and trying to wrap it up with my RE investing and AP Plan. I only found one firm that claimed to specialize in AP locally and they did not have a free consultation, they wanted $300/hr or something just for a consult. No thanks. So I was meeting primarily with Estate attorneys. I truly believe that law is specific to your locale, but more important is finding someone that specializes in the area of law that you need. Be that RE, business entities, securities, criminal, tax, whatever. Not to be cliché but you don't want a podiatrist doing your heart surgery. So I was hesitant to go with this national firm at first. That and because they have quite the marketing machine which smacks of guruism to me. But what I have learned here on BP is that if you aren't marketing, you aren't doing good business, so I decided to overlook that bias.
Anyway, all of the Estate Attorneys I met with told me to just get more insurance for AP. I hate that for reasons I won't get into here, but suffice it to say it is like someone trying to sell me a car when I am shopping for a truck because they only have cars. So ultimately I went with the national firm and I have to say I could not be more pleased with their products. My only complaint would be that I can't meet face to face or go rattle someone's cage in person, but overall, I am more than satisfied.
I don't know that they do things like IRA LLCs, I have not specifically inquired. They do have pretty good breadth and depth in the areas that are important to me. If not, I will find someone who does. I am already networking to get the right person/outfit for the job and will do my due diligence when the time comes to set up an IRA LLC or Solo401k or whatever.
So I told you all that when I could have just answered your question in one line, but I wanted to know where I was coming from.
Anderson Business Advisors
They should be the first thing that pops up if you Google them. They are based out of Las Vegas and Washington state.
Ed
I was trying to accomplish something different. I was overhauling my estate plan and trying to wrap it up with my RE investing and AP Plan. I only found one firm that claimed to specialize in AP locally and they did not have a free consultation, they wanted $300/hr or something just for a consult. No thanks. So I was meeting primarily with Estate attorneys. I truly believe that law is specific to your locale, but more important is finding someone that specializes in the area of law that you need. Be that RE, business entities, securities, criminal, tax, whatever. Not to be cliché but you don't want a podiatrist doing your heart surgery. So I was hesitant to go with this national firm at first. That and because they have quite the marketing machine which smacks of guruism to me. But what I have learned here on BP is that if you aren't marketing, you aren't doing good business, so I decided to overlook that bias.
Anyway, all of the Estate Attorneys I met with told me to just get more insurance for AP. I hate that for reasons I won't get into here, but suffice it to say it is like someone trying to sell me a car when I am shopping for a truck because they only have cars. So ultimately I went with the national firm and I have to say I could not be more pleased with their products. My only complaint would be that I can't meet face to face or go rattle someone's cage in person, but overall, I am more than satisfied.
I don't know that they do things like IRA LLCs, I have not specifically inquired. They do have pretty good breadth and depth in the areas that are important to me. If not, I will find someone who does. I am already networking to get the right person/outfit for the job and will do my due diligence when the time comes to set up an IRA LLC or Solo401k or whatever.
So I told you all that when I could have just answered your question in one line, but I wanted to know where I was coming from.
Anderson Business Advisors
They should be the first thing that pops up if you Google them. They are based out of Las Vegas and Washington state.
Ed
After reviewing the information in this thread, I did some research to make sure what you were doing was legitimate in the state of Virginia, because I would hate for a member of Biggerpockets to face adverse legal consequences. Below is a brief synopsis of the information that I found. Please note: I must tell you that I am not agreeing to represent you by virtue of providing this information. Should you have any substantive legal questions, you should consult your own attorney:
I do have two minor concerns having reviewed Aderson Business Advisor's website and the applicable Virginia Code; The first: I am unable to find anyone on their website who is licensed to practice in the state of Virginia. Not to say that they do not have such a local attorney or that they are not appropriately exempted by corporate status, to review such documents, but word of warning to anyone considering a large law firm like this;
Should anyone go with an attorney not licensed to practice in your state, you run the risk of adverse legal consequences down the line. Prior to filing any paperwork, confirm that the person who prepared your paperwork was a licensed attorney in the state you are operating in.
The second: I was unable to find anything in the Virginia Code which affirmatively enables this kind of incorporation strategy. Word of warning; many large law firms propose business strategies that may not work in every state. For instance; Series LLCs are not affirmatively accepted in the state of Virginia, although it is a common planning tool for many attorneys. For your own reference, the applicable code section would be Section 13.1, Chapter 12. This handles the types of entities which may be members of an LLC.
I do have a marginal concern that the code section doesn't appear to enable these "self directed IRA LLCs". Not to say that a Virginia Court of Law would invalidate such a structure. If anything, I was able to rationalize the structure with existing case law. In my opinion, equity promotes the use of such LLCs. Prior to today, I had no idea such entities existed, but they sound like a marvelous estate planning/business incorporation tool. I think common law and public policy would *likely* be on the side of these LLCs in Virginia, but I would stress that such incorporation strategies *appear* untested in our state.
The purpose of my post is not to promote buyer's remorse or to scare any readers. I am glad you reached out to a strong law firm to represent your interests. I merely caution a degree of self restraint and inspection when dealing with these large law firms, and I want to educate people that large law firms may not be the best answer (if they didn't advise you of any of this).
DISCLAIMER: The above is general legal educational information. The above is not actionable legal advice. Nothing here is intended to guide anyone's action. I am not telling anyone in the state of Virginia to take any actions based on this information. Incorporate this information as you see fit. The Virginia State bar may view this information as legal advertising. I am not agreeing to be anyone's attorney by virtue of posting this information. The views expressed are not the views of my firm. I post this information in my individual capacity as a forum member, not in my trade name.
I completely agree and everything you mentioned were reasons that I sought a VA attorney initially. I think you know that I typically strongly recommend using local attorney's when it comes to this type of thing. AP is something of a niche, though, and it is difficult to find people who specialize. I recognize and I believe that Anderson's does as well, that every state is different. Like anything, you have to do your due diligence and make the best decision you can with the information available.
I will tell you that I have had local attorneys set up LLCs for me in the past and I strongly question, now, how suitable they were for my stated purpose. So you may have to choose between someone who does not have the resident expertise in your state and someone who does not have the resident expertise in the specialty you are looking for. Just like the decision whether to set up an LLC at all, everyone needs to do what is right for them. It is not a black or white issue. Very few things are when it comes to the law. I believe I made an informed decision but only time will tell. I promise to report back if I am ever taken to the cleaners because my stuff didn't hold up in court.
I am wary of IRA LLCs because it is very easy to get yourself in trouble with them, from my point of view anyway. To be honest, I had not considered the legality from a state perspective since most of the negative consequences deal with the IRS. Definitely something that I will look into now if/when I decide to go that route.