Is a checkbook manager recommended for an LLC owned by a SDIRA?

[Chris Policicchio]

I am in the process of setting up a self-directed IRA and then an LLC so I can have checkbook control. I want checkbook control to avoid the fees associated with money going in or out of the IRA. While vetting a few attorneys who can help setup an LLC, one recommended that I have someone else (e.g. a friend) officially manage the checkbook. I will have a property manager, but I am not entertaining the idea of them having checkbook access or control. The attorney indicated that the IRS tends to target LLCs of Self Directed IRAs where the IRA owner is also the single member of the LLC.

I'm only going to have one property (rental) in the IRA. Rent checks will be coming in. At some point, I will make some improvements to the property and I'll have to pay some other bills (e.g. taxes) but for the most part, there is going to be little activity. I don't think the extra layer is worth it. Does anyone have any thoughts or recommendations?

Anyone out there have a similar setup?  Are you managing the checkbook?  Or is someone else?

Thanks in advance!

[Brian Eastman]

@Chris Policicchio

The administrative activities of signing contracts and dealing with expense and income transactions should not create any kind of issues with the IRA. We have established checkbook IRA LLC programs for 12 years and have setup many thousands of such plans. Our client - the IRA account holder - is always the LLC manager. That is really the whole point of checkbook control. We have had a handful of clients audited and the self-management of the LLC has not been an issue.