Checkbook SDIRA LLC - how are taxes handled?
I am planning to open a Checkbook Self-Directed IRA LLC through a custodian that supports these accounts. I understand that you also need to obtain an EIN for the purpose of opening a bank account in the LLC's name, and I expect that's also necessary if you use the LLC to invest in investment accounts, such as brokerage accounts.
My question is, what happens when you earn interest or other earnings that would otherwise be taxable for an LLC? The bank or brokerage would report that interest against the EIN for your LLC. How do you go about deferring taxes on the LLC's earnings, as it is owned by the IRA?
I believe you don't normally have to file a tax return for a single-member LLC, but if your LLC earns interest, is a separate return required? On that return, do you indicate that the LLC earnings should be charged against the custodian's EIN?